The Effect of Price and Security on Tourism Demand: Panel Quantile Regression Approach

Abstract

It is of great importance for countries to increase the contribution of the tourism sector to the economy. Therefore, the authorities focus on how to increase the demand for tourism. However, the most important issue is to define the factors that influence the demand for tourism in a complex environment and this study attempts to contribute to this field. Specifically, the study examines the effects of REER (Real Effective Exchange Rate) and security conditions on tourism demand using panel data methods for 73 countries, in the tourism ranking list from UNWTO reports, over the period 2003-2018. The main results of this study show that while the effect of REER on tourism demand is negative, the security condition has a positive effect on the demand for the tourism sector. In addition to these findings which confirm the existing literature, the innovative character of the methodology – fixed-effect panel quantile regression analysis - allowed us to check whether the effects of these variables may vary in different percentiles of tourism demand. Estimation result reveals that the effect of change in REER on tourism demand increases in high percentiles. Nevertheless, the effect of the security on tourism demand decreases as percentiles increase.

Crime Hallmark Nexus Between Tourism Support and Destination: Empirical Standpoint of Social Control Theory

“…The previous scientific literature review ensured that tourist destinations should be secure if the crime aspects are controlled in the regions (de Oliveira et al, 2023). Furthermore, previous researchers commonly acknowledged that decrease in tourism activities are closely associated to criminal activities and terrorism (Çetin et al, 2023;de Oliveira et al, 2023;Mataković, 2023;Maulana et al, 2023). Pakistan's status is ranked as a developing country and must utilize tourism driver for significant socioeconomic growth.…”

“…The importance of tourism destinations and tourist visits are related to safe tourist places. Several authors developed a constructive association between tourism activities and criminal activities in the tourism destination (Çetin et al, 2023;de Oliveira et al, 2023;Mataković, 2023;Maulana et al, 2023). The current study result proved that crimes against persons and property have decreased the interest of tourists in northern areas and do not support tourist destinations by the community people.…”

Security and Securitization as Topics in Sustainability and Tourism Research

“…As in the case of sustainability, researchers can publish the results of their work in 149 journals with "tourism" in the title (WoS). The undertaken research shows a clear trend of security in tourist traffic [38][39][40][41][42]. The undertaken works include case studies [43] and present the relationships between the impacts of wars [44,45], terrorism [46][47][48][49][50], natural disasters [51,52] or the pandemic [53,54] and changes in tourist traffic.…”