Terrorism and the Regional and Religious Risk Perception of Foreigners: The Case of German Tourists

Gabriel M. Ahlfeldt, Bastian Franke and Wolfgang Maennig ()

No 24, Working Papers from Chair for Economic Policy, University of Hamburg

Abstract: This paper analyses how German tourists react to unanticipated shocks that alter their risk perception of selected tourism destinations. Using a difference-in-difference strategy which flexibly accounts for macroeconomic conditions and also addresses potential problems of serial correlation, we isolate significant effects of the 9/11 (2001) terrorist attacks, as well as for the attacks in Egypt (1997), Tunisia (2002), Morocco (2003) and Indonesia (2003). These terror attacks impacted especially on Islamic countries all over the world, indicating a transmission mechanism driven by ethnic and religious proximity. At the same time, tourism into Islamic countries was temporarily substituted by tourism to (south) European countries.

Keywords: Keywords: Terrorism; 9/11; Islamic Countries; Tourism Demand (search for similar items in EconPapers)
JEL-codes: R19 D89 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ara, nep-cul, nep-sea and nep-tur
Date: Written
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Published in Hamburg Contemporary Economic Discussions, Issue 24, 2009

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http://www.hced.uni-hamburg.de/WorkingPapers/024.pdf First version, 2009 (application/pdf)

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Persistent link: http://EconPapers.repec.org/RePEc:hce:wpaper:024

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