Effect of Natural Disasters and Terrorism on Tourism Growth: Evidence from Top Ten Tourist’s Destination

Anam Aziz (), Muhammad Atif Nawaz () and Sobia Hanif ()
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Anam Aziz: Ph.D. Scholar, Department of Economics, The Islamia University of Bahawalpur, Pakistan
Muhammad Atif Nawaz: Associate Professor, Department of Economics, The Islamia University of Bahawalpur, Pakistan
Sobia Hanif: Ph.D. Scholar, Department of Economics, The Islamia University of Bahawalpur, Pakistan

iRASD Journal of Economics, 2022, vol. 4, issue 2, 375-393

Abstract: Tourism is influenced by a wide range of factors and forces including exogenous ones that have no direct link to the tourism industry. Terrorism and natural disasters are two examples of such factors. Individuals, organizations and culture, all are affected by them. This study analyzes the impact of natural disasters and terrorism on tourism growth by using a panel data for the period 1995-2019 collected from a variety of sources. Tourism is the dependent variable whereas natural disasters, terrorism are independent and economic growth, tourism employment, tourism investment and alcohol consumption are the control variables of the study. This study used pooled mean group and robust least square estimation. The findings show that natural disasters and terrorism have varying degrees of impact on tourism growth. While there is a positive outcome in some situations, the overall influence is negative. Findings of the study suggest that understanding the relationship between natural disasters, terrorism, and tourism is beneficial to destination operators who are responsible for rehabilitation, restoration, and promotion.

Keywords: Tourism Growth; Terrorism; Natural Disasters; Top Ten Tourist Destinations (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ani:irdjoe:v:4:y:2022:i:2:p:375-393

DOI: 10.52131/joe.2022.0402.0086

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