This paper uses a new database of political violence in Egypt to study the effects of political violence on the monthly arrival of tourists from the EU and the US in Egypt in the 1990s. We use time series analysis to study the impact of different aspects of political violence and counter-violence. We find that both US and EU tourists respond negatively to attacks on tourists, but do not appear to be influenced by casualties arising in confrontations between domestic groups. However, European tourists are sensitive to the counter-violence measures implemented by the Egyptian government. There is also evidence of tourism in Egypt being affected by the Israeli / Palestinian conflict, with arrivals of US tourists into Egypt rising when fatalities in Israel increase, while European tourists reduce their demand for Egyptian holidays.
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Paper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number
05/7.
Length: Date of creation: Mar 2005 Date of revision: Handle: RePEc:lec:leecon:05/7
Contact details of provider: Postal: Department of Economics University of Leicester, University Road. Leicester. LE1 7RH. UK Phone: +44 (0)116 252 2887 Fax: +44 (0)116 252 2908 Email: Web page: http://www.le.ac.uk/economics/
Find related papers by JEL classification: P48 - Economic Systems - - Other Economic Systems - - - Other Economic Systems: Political Economy; Legal Institutions;
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