Effect of terrorism on demand for tourism in Kenya

Steven Buigut and Djesika D. Amendah
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Steven Buigut: American University in Dubai, UAE
Djesika D. Amendah: African Population and Health Research Center, Kenya

Tourism Economics, 2016, vol. 22, issue 5, 928-938

Abstract: This article uses a dynamic panel data model to analyse the effects of terrorism on demand for tourism in Kenya. We use annual data from 2010 to 2013 for a widely dispersed set of 124 countries of origin covering Europe, Asia, the Americas and Africa. The result suggests that a 1% increase in fatalities significantly reduces tourist arrivals by about 0.13%. This translates to a reduction of about 2507.5 visitors per year and roughly 157.1 million Kenya Shillings lost in tourism revenue per year for every one unit increase in fatality. Other proxies for terrorism, such as incidence or casualties, have a similar effect, indicating the robustness of the results. On the other hand, previous visits have a strong and positive effect on the level of current arrivals.

Keywords: dynamic panel model; Kenya; terrorism; tourism development (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:22:y:2016:i:5:p:928-938

DOI: 10.5367/te.2015.0467

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