The impact of geopolitical risk on tourism

Abebe Hailemariam and Kris Ivanovski

Current Issues in Tourism, 2021, vol. 24, issue 22, 3134-3140

Abstract: In this paper, we examine the impact of geopolitical risk on the demand for tourism service export. Using structural VAR model and U.S. monthly data from January 1999 to August 2020, we find that geopolitical risk has a negative and significant impact on tourism service exports. Our results reveal that, in the long-run, a one-standard-deviation shock in geopolitical risk shock explains about 12.6% of the variations in tourism net service exports.

Date: 2021
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DOI: 10.1080/13683500.2021.1876644

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