IDEAS home Printed from https://ideas.repec.org/p/zbw/zeiwps/b262001.html
   My bibliography  Save this paper

Regional effects of terrorism on tourism: Evidence from three Mediterranean countries

Author

Listed:
  • Drakos, Konstantinos
  • Kutan, Ali M.

Abstract

A consumer-choice model developed by Enders, Sandler and Parise (1992) is utilized to study the regional effects of terrorism on competitors’ market shares in tourism sector where involved countries enjoy significant tourism activities but are subject to high frequency of terrorist attacks. The theoretical model is tested for three Mediterranean countries, namely Greece, Israel, and Turkey, for the period from January 1996 to December 1999, using the seemingly unrelated regression model. Italy is used as a control variable in estimations, acting as a proxy for tourist activities in the rest of the Mediterranean region and providing an additional destination for tourists to visit. Evidence indicates that the tourism industry in Israel and Turkey are more sensitive to terrorism incidents than in Greece. There are also significant regional contagion effects of terrorism. We find that a higher level of terrorist incidents in Greece is associated with an increase in the relative market share of Israel in the region, while terrorism in Israel benefits Turkey’s market share. We also document evidence that the location (urban versus rural) and the intensity of terrorist incidents play an important role in the decision-making process of tourists for choice of destinations. Policy implications of our findings are also discussed.

Suggested Citation

  • Drakos, Konstantinos & Kutan, Ali M., 2001. "Regional effects of terrorism on tourism: Evidence from three Mediterranean countries," ZEI Working Papers B 26-2001, University of Bonn, ZEI - Center for European Integration Studies.
  • Handle: RePEc:zbw:zeiwps:b262001
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/39497/1/341292923.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Atkinson, Scott E & Sandler, Todd & Tschirhart, John, 1987. "Terrorism in a Bargaining Framework," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 1-21, April.
    2. Lapan, Harvey E & Sandler, Todd, 1988. "To Bargain or Not to Bargain: That Is the Question," American Economic Review, American Economic Association, vol. 78(2), pages 16-21, May.
    3. Sandler, Todd & Lapan, Harvey E., 1988. "The Calculus of Dissent: An Analysis of Terrorists' Choice of Targets," Staff General Research Papers Archive 10818, Iowa State University, Department of Economics.
    4. Enders, Walter & Sandler, Todd & Parise, Gerald F, 1992. "An Econometric Analysis of the Impact of Terrorism on Tourism," Kyklos, Wiley Blackwell, vol. 45(4), pages 531-554.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Terrorism; Mediterranean tourism; time series; seemingly unrelated regression;

    JEL classification:

    • D1 - Microeconomics - - Household Behavior
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    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:zbw:zeiwps:b262001. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/zeibnde.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.