The impact of geopolitical risk on tourism

JournalCurrent Issues on Tourism
AuthorsAbebe Hailemariam, Kris Ivanovski
PublishedJanuary 2021
PublisherRoutledge, Taylor & Francis Group
Volume24, 2021
Research ThemesEducation and Skills

In this paper, we examine the impact of geopolitical risk on the demand for tourism service export. Using structural VAR model and U.S. monthly data from January 1999 to August 2020, we find that geopolitical risk has a negative and significant impact on tourism service exports. Our results reveal that, in the long-run, a one-standard-deviation shock in geopolitical risk shock explains about 12.6% of the variations in tourism net service exports.