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Visa waivers, multilateral resistance and international tourism: some evidence from Israel

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  • Michael Beenstock
  • Daniel Felsenstein
  • Ziv Rubin

Abstract

This paper tests the visa-led tourism hypothesis which contends that easing of visa restrictions increases international tourism. Israel acts as a natural laboratory in this case with clear before and after junctures in visa restrictions. We use panel data on tourism to Israel from 60 countries during 1994–2012. In contrast to previous work we take account of nonstationarity in the data and test for the effect of multilateral resistance on tourism. Partial waivers of visa restrictions are estimated to increase tourism by 48 % and complete waivers increase tourism by 118 %. Other results include the adverse effect of Israel’s security situation on tourism, the beneficial effect of real devaluation on tourism, and the fact that the elasticity of tourism to Israel with respect to tourism to all destinations is very small. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Michael Beenstock & Daniel Felsenstein & Ziv Rubin, 2015. "Visa waivers, multilateral resistance and international tourism: some evidence from Israel," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 357-371, November.
    • Handle: RePEc:spr:lsprsc:v:8:y:2015:i:3:p:357-371
    DOI: 10.1007/s12076-015-0137-3
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    Cited by:

    1. Tsuyoshi Goto & Nobuo Akai, 2017. "Benefit and Cost of Visa relaxation -Empirical Analysis on the Impact of Visa waiver-," Discussion Papers in Economics and Business 17-10, Osaka University, Graduate School of Economics.

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    More about this item

    Keywords

    International tourism; Visa arrangements; Security ; Multilateral resistance; C23; R23;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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