Asymmetric effects of real exchange rate on inbound tourist arrivals in Malaysia: An analysis of price rigidity

Karimi, Mohammad Sharif; Khan, Ashfaq Ahmad; Karamelikli, Hüseyin

doi:10.1002/jtr.2249

Cited by 29 publications

(19 citation statements)

References 65 publications

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“…Greenwood (2007) presents evidence of the direct influence of exchange rate on the spending behavior of inbound tourists during their visit, as they spend less when the value of the domestic currency appreciates. Several empirical studies attempt to examine the impact of exchange rate on the tourism industry in different destinations in terms of tourism flows and revenues (See for example: Sharma and Pal., 2019;Karimi et al, 2018;Falk, 2015;Agiomirgianakis et al, 2014;Saayman and Saayman, 2013;Tang, 2013;Alalaya, 2010;Quadri and Zheng, 2010). The relation between the exchange rate and the performance of firms in the tourism sector has not been grossly examined yet.…”

Section: Introductionmentioning

confidence: 99%

Exchange Rate Volatility and Tourism Stock Prices: Evidence from Egypt

Ahmed

2019

Journal of Association of Arab Universities for Tourism and Hos

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Tourism is a key stimulator of economic growth and foreign currency in Egypt. As an export sector, it could affect and be affected by changes in exchange rate. This paper investigates the dynamic relationship between exchange rate and tourism stock prices and examines the effect of exchange rate volatility on tourism stock prices in the Egyptian Exchange (EGX). Exchange rate is proxied by the USD/EGP official values. Granger causality test and ARCH/GARCH models are employed. Results provide an evidence of a unidirectional causal relationship between the tested variables from exchange rate to tourism stock price. The estimations of the GARCH model reveal that exchange rate variance accelerates stock price variance, and depreciation in the EGP against USD enhances tourism stock performance. Findings provide decision-makers, financial managers, and investors with a better understanding of how exchange rate volatility affects the stock performance of tourism companies in the EGX, and offer researchers new directions for future research.

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Section: Introductionmentioning

confidence: 99%

Exchange Rate Volatility and Tourism Stock Prices: Evidence from Egypt

Ahmed

2019

Journal of Association of Arab Universities for Tourism and Hos

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“…IP has a significantly positive link with the ASI in all quantiles. As the IP index is a proxy for real economic activity, it has a strong link with tourism arrivals (Karimi et al, 2019). Therefore, IP decreases during an economic recession and increases during an economic expansion.…”

Section: Methodsmentioning

confidence: 99%

The Impact of Tourism Uncertainty on Airline Stock Markets in Korea: A Quantile Regression Approach

Jeon

2021

Journal of Business Economics and Management

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This study explores the impact of tourism uncertainty, including economic policy uncertainty (EPU) and travel crises arising from issues such as terrorism and disease outbreaks, on airline stock markets in Korea. Airline stock prices are particularly affected by tourism uncertainty. Using data from 2001–2018 and events influencing tourism uncertainty such as the 9/11 terrorist attacks and severe acute respiratory syndrome, quantile regression approach reveals how EPU influences airline stock prices in Korea during three market phases – bearish, normal, and bullish. EPU and travel crises negatively affect airline stock prices in Korea. Specifically, we document that higher EPU and more global travel crises lead to deeper reductions in stock prices in bullish markets. These results provide implications and insights for airline investors, stakeholders, and organizations concerned about the influence of tourism uncertainty on airline stock prices in Korea.

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“…These studies have used the exchange rate in different ways in their models. Demirel et al (2008) and Karimi et al (2018), for example, defined the real exchange rate as the nominal exchange rate multiplied by the ratio of the foreign and domestic consumer price indices,…”

Section: International Inbound Tourism Demand Studiesmentioning

confidence: 99%

Does the Value of Currency Affect the Numbers of International Inbound Tourists to Turkey?

Gaberli¹,

Akdeni̇z²,

Eti³

2021

Journal of Yaşar University

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This study examined the effect of the value of the currency on international inbound tourist numbers to Turkey from Germany and Russia, which are the top two tourist generating countries for Turkey. Two different Turkish Lira regimes are investigated with Threshold Vector Autoregressive (Threshold-VAR) models, using the real broad effective exchange rate for Turkey as a threshold variable. The endogenous variables vectors are the macroeconomic variables of the tourist origin countries: the real broad effective exchange rate, consumer price index ratio (proxying for the price level), and total industry production (proxying for income level) for Germany and Russia. Because of data constraints, the estimated Threshold-VAR models for Germany and Russia covered different periods

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Asymmetric effects of real exchange rate on inbound tourist arrivals in Malaysia: An analysis of price rigidity

Cited by 29 publications

References 65 publications

Exchange Rate Volatility and Tourism Stock Prices: Evidence from Egypt

Exchange Rate Volatility and Tourism Stock Prices: Evidence from Egypt

The Impact of Tourism Uncertainty on Airline Stock Markets in Korea: A Quantile Regression Approach

Does the Value of Currency Affect the Numbers of International Inbound Tourists to Turkey?

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