Analyzing the Relationship between Terrorism and Tourism: An Examination of Europe
Date
2018
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Haverford College. Department of Economics
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Thesis
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Award
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eng
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Open Access
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Abstract
This study analyzes the effects of terrorism on tourism in European countries and reaffirms previous literature that shows a statistically significant negative and lagged relationship between terrorism and tourism, while expanding the scope to countries in Europe and using contemporary data. An ordinary least squares regression using data from 2007 to 2016 finds that tourist arrivals decrease by approximately 0.013% to 0.016% in ten, eleven, and twelve months after a terrorist attack. However, the level of violence associated with terrorist attacks does not appear to impact tourists’ decisions given there is no statistical significance surrounding these variables. Rather, tourists seem to change their travel decisions given a past history of terrorist attacks regardless of the level of violence.