IDEAS home Printed from https://ideas.repec.org/a/taf/rcitxx/v24y2021i16p2225-2232.html
   My bibliography  Save this article

Brexit uncertainty and volatility persistence in tourism demand

Author

Listed:
  • Anupam Dutta
  • Tapas Mishra
  • Gazi Salah Uddin
  • Yang Yang

Abstract

Tourism has emerged as one of the leading components of aggregate economic growth in most developed economies, especially in the UK, where it is predicted to grow at an annual rate of 3.8% through 2025. Because tourism demand represents individuals’ choice between leisure and work, a persistence of negative shocks, such as Brexit uncertainty, can be detrimental to the growth of tourism via its impact on agents’ utility function of a directed consumption of leisure for a specific country. This note fills a gap in the literature by providing an econometric estimate of time-varying volatility in tourism demand following Brexit-driven Economic Policy Uncertainty. Using seasonally adjusted and trend-extracted tourist arrival series along with Brexit uncertainty, we find a strong evidence of long-run persistence in (asymmetric) volatility in tourist arrival. In particular, the BREXIT referendum appeared to create ambiguity among international visitors to the UK. Our results have important policy implications.

Suggested Citation

  • Anupam Dutta & Tapas Mishra & Gazi Salah Uddin & Yang Yang, 2021. "Brexit uncertainty and volatility persistence in tourism demand," Current Issues in Tourism, Taylor & Francis Journals, vol. 24(16), pages 2225-2232, August.
    • Handle: RePEc:taf:rcitxx:v:24:y:2021:i:16:p:2225-2232
    DOI: 10.1080/13683500.2020.1822300
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13683500.2020.1822300
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13683500.2020.1822300?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. James E Payne & Saban Nazlioglu & Andrea Mervar, 2023. "Economic policy uncertainty and international tourist arrivals: A disaggregated analysis of the Croatian Adriatic coast," Tourism Economics, , vol. 29(4), pages 986-1004, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:rcitxx:v:24:y:2021:i:16:p:2225-2232. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rcit .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.