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The effects of terrorism, crime and corruption on tourism

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  • María Santana-Gallego, Jaume Rosselló-Nadal and Johan Fourie

Abstract

This article examines the effect of terrorism, crime and corruption on tourist arrivals for 171 countries for the period 1995–2013. We apply two types of analysis: a tourism demand model and a disaggregation of tourism arrivals by origin. The findings of the tourism demand model are that terrorism and crime have a negative effect on tourist arrivals but that corruption has no effect; that the effects of terrorism and crime are greater for leisure tourism than for business tourism but that corruption affects only business tourism; and that the effects of terrorism, crime and corruption depend on the attractiveness of the destination country and its level of development. The data on tourist arrivals disaggregated by origin are used to study the effects of instability in the destination and the origin country and to compare the instability measures of the two countries. Here the findings are that terrorism, crime and corruption in the destination country have a negative effect on inbound tourism but that instability in the origin country has no clear effect on tourist departures; and that tourists from stable countries prefer travelling to countries with the same stability but tourists from unstable countries are more tolerant of crime, terrorism and corruption in the destination country.

Suggested Citation

  • María Santana-Gallego, Jaume Rosselló-Nadal and Johan Fourie, 2016. "The effects of terrorism, crime and corruption on tourism," Working Papers 595, Economic Research Southern Africa.
  • Handle: RePEc:rza:wpaper:595
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    File URL: http://www.econrsa.org/node/1212
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. How to boost South Africa’s tourism
      by Johan Fourie in Johan Fourie's Blog on 2016-07-15 08:58:13

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    Cited by:

    1. Nahil Boussiga & Malek Ghdamsi, 2016. "The Corruption-Terrorism Nexus: A Panel Data Approach," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(11), pages 111-117, November.
    2. Haroon Bhorat & François Steenkamp & Christopher Rooney & Nomsa Kachingwe & Adrienne Lees, 2016. "Understanding and characterizing the services sector in South Africa," WIDER Working Paper Series 157, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    terrorism; crime; corruption; international tourism; gravity model;

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