6533b825fe1ef96bd1282749

RESEARCH PRODUCT

TERRORISM AND INTERNATIONAL TOURISM: NEW EVIDENCE

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This paper analyses the impact of terrorist activity on international tourist flows. To this end, we have estimated a cross‐sectional gravity equation for tourism from the G‐7 countries to a sample of 134 destinations over the period 2001–2003. Within this framework, we evaluate the deviation from ‘normal’ tourist flows due to terrorist activity, which is considered as negative advertising for the affected country. The analysis suggests that both domestic victims and international attacks are relevant factors when foreign tourists make their choice. This result is robust under alternative specifications. Moreover, the impact of terrorism is more severe in developing countries. The author is indebted to Salvador Gil and Jose Antonio Martinez‐Serrano for valuable observations. I am grateful to two anonymous referees and the editor for very helpful comments and suggestions. Thanks also to the World Tourism Organisation for kindly providing data on the number of tourist arrivals. Financial support from Minist...