The Impact of Exchange Rate on Tourism Industry

Samirkaş, Meryem; Samirkaş, Mustafa Can

doi:10.4018/978-1-4666-9814-7.ch054

Cited by 5 publications

(3 citation statements)

References 5 publications

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“…An increase (appreciation) of the IDR currency by 1 percent against USD leads to lower economic growth by 0.035 percentage points. Generally, tourists will consider the exchange rate when choosing their destination country (Samirkaş & Samirkaş, 2016).…”

Section: Resultsmentioning

confidence: 99%

The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia

Azizurrohman¹,

Hartarto

Lin

et al. 2021

JESP

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Foreign tourism is indicated as one of the important instruments to encourage economic growth in several countries, including Indonesia. However, some studies only focus on the influence of tourist arrivals. Thus, the main objective of this study is to take a deeper look at the contribution of foreign tourism indicators to economic growth in Indonesia. Using panel data analysis from 33 countries between 2006 and 2016, this study applies three models: Pooled Least Square (PLS), Fixed Effect Model (FEM), and Random Effect Model (FEM). Based on the fixed-effect model, this study reveals that foreign tourist arrivals have a significant and positive effect on economic growth. However, other tourism indicators such as length of stay and expenditure of foreign tourists appear to have no contribution to economic growth. From these findings, it can be implied that the Indonesian government should not only attract more tourists to come but also design strategies to encourage tourists to spend more money and stay longer. This study also finds that depreciation of Indonesian currency and visa-free policies have a significant contribution to higher economic growth.

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Section: Resultsmentioning

confidence: 99%

The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia

Azizurrohman¹,

Hartarto

Lin

et al. 2021

JESP

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“…On the other hand, because the tourism sector is affected by the economic environment within which it operates, it is also quite clear from the literature that the sector can also be affected by adjustments in macroeconomic variables (Samirkas and Samirkas, 2021). For example, Pektas and Unluonen (2019) assert that one of the most significant economic issues is inflation, and according to Kelvin (2010), a consistent increase in the prices of all goods is known as the definition of inflation.…”

Section: Literature Reviewmentioning

confidence: 99%

The Implication of Political Risk and Specific Macroeconomic Variables on Total Revenue in Tourism Industry

Habanabakize,

Mothibi

2024

IJEFI

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Political risk is one factor that influences tourism performance as a tourist is more sensitive to the hosting country’s political environment. In addition, to the effect of country risk on the tourism industry, the global economy has recently experienced severe shocks due to high inflation rates, political risk, and currency volatility. This paper aims to investigate the implications of political risk, inflation, and exchange rate volatilities on tourism revenue in South Africa. A sample of 144 monthly data was used to assess both long-run and short-run relationships amongst the study variables using the ARDL cointegration and error correction model approaches to achieve the study objective. Results indicated that political risk, inflation rate, and exchange rate volatility influence long-term revenue changes in the tourism industry. In contrast, real effective exchange rates and inflation significantly impact total revenue in the tourism sector. The findings also indicated that political risk has no short-term effect on tourism revenue. Based on these findings, the study recommends that the country's political stability increase, increasing the number of tourist arrivals and resulting in growing revenue for the tourism industry in S.A. Additionally, the South African reserve bank should revise its exchange-rate pegging, monetary targeting, and inflation targeting to reduce the effects of inflation on tourism revenue.

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“…Consequently, inflow and outflow mechanisms of foreign exchange, long-term and short-term qualitative levels of investments generated through foreign exchange earnings, determine the behavior of tourism services, contributing to the growth in the economy of a country. "Foreign exchange earnings are used to make the payment of import of goods and services and the volume of foreign exchange shows the potential of the economy in the world" (Samirkaş and Bahar, 2013). "Tourism has emerged as main, the most main source of foreign exchange" (Mahalia and Troy, 2009).…”

Section: Intangible Vs Tangible Economymentioning

confidence: 99%

After Corona (COVID-19) impacts on global poverty and recovery of tourism based service economies: An appraisal

Ranasinghe¹,

Karunarathna²,

Pradeepamali³

2021

IJTHM

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The Covid-19 pandemic has created dramatic challenges reversing the growth in many economies, reaching the most devastative economical breakdown, converting millions of people with anxiety and depths of poverty that enforce a continuous threat to the most sensitive economies, making them vulnerable, resulting zero income that experienced a worse depression in the diverse sectors. The economic battle has insights on the tangible and intangible service economies that accelerated the negative consequences, specifically, in the tourism sector, which, immersed in the crisis without a potential cure that reverse the flow of economic functioning in the world. The depicted review will elaborate a picture of the global economy in 2020 with the Covid-19 pandemic and possible impact on reaching significant goals of 2030 agenda for sustainable development. Mainly, this paper has concentrated deeper on global poverty which is a peril in the attempts of development strictly affected by the crisis that emphasize income and consumption shortfalls with real aspects of human well-being in the world. Foremost, the review will summit the short run and long run service economic impacts on the global poverty and attempts for the rebirth of tourism service economy, assuring the economic recovery, while injecting and fostering investments and strategies that accelerate and restore the lost demand that protect the resilience of a service economy to combat poverty in order to recover the destructions caused during this global pandemic.

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The Impact of Exchange Rate on Tourism Industry

Cited by 5 publications

References 5 publications

The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia

The Role of Foreign Tourists in Economic Growth: Evidence from Indonesia

The Implication of Political Risk and Specific Macroeconomic Variables on Total Revenue in Tourism Industry

After Corona (COVID-19) impacts on global poverty and recovery of tourism based service economies: An appraisal

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