Nexus Between Political Instability & International Tourism Demand

Abstract

The tourism industry promotes a country’s economic growth and creates a positive destination image. However, tourism demand is sensitive to many factors, especially the political stability of destination countries. The purpose of this study is to evaluate the impact of political instability on international tourism demand. To this end, this study implied two-dimensional analyses using the gravity model through pooled ordinary least square (POLS) estimator. We pay special attention to tourism demand distribution by employing a data set of 200 destination countries between 1995 and 2020. Our empirical results depict that political instability in destination countries finds a negative effect on international tourism demand. Moreover, a radical decline in GDP is observed in the sub-period of 2006–2020 due to the global financial crisis and its aftershocks, which badly affect tourists' attraction to destination countries. This study offers new insights for tourism policymakers and businesses.

The U-shaped relationship between corruption and international tourism demand: A gravity model approach

“…Examining the impact of corruption on tourism across all countries, the coefficient CC jt is 0.140, which is statistically significant and is not negative and has no higher index. These findings differ from those of both developing and developed countries, as well as from those of Shaikh et al (2022). Our analysis shows that corruption does not have a significant impact on tourism or international tourist arrivals.…”

“…The regress for this study is tourism demand, which is typically measured through tourist expenditure or tourist arrivals (Lassou et al, 2021). Here total tourist arrivals at the destination country (Tou) are used as a reliable measure of international tourism demand (Shaikh et al, 2022).…”

“…Haseeb and Azam (2021) and Iancu et al (2022) assert that corrupt governments misusing resources and hindering sound tourism activities are a significant issue. The negative impact of corruption on tourism has been observed in various countries, including Kenya, for example, Shaikh et al (2022) reported that the high level of corruption in the Kenyan government prevented the resolution of ecological problems which, in turn, affected the African Centre for Technology Studies in 1998. Several studies have suggested that corruption can facilitate business activities and the circulation of money, however, it is important to note that corruption is a complex issue with negative consequences that cannot be ignored.…”