THE IMPACT OF POLİTİCAL INSTABİLİTY AND TERRORİSM ON TOURİSM: A PANEL DATA ANALYSİS

Abstract

Tourism, which is seen as an important source of foreign currency especially for developing countries, is also important for countries because of their connections with many sectors. In this study, the impact of terrorism and political instability on tourism is examined. Data for the period 2002-2018 for the ten countries that attract the most tourists in the world were examined by panel data analysis method. In the model used in the study, tourism was determined as the dependent variable and tourism was represented by the number tourist arrivals. In addition, GDP representing growth is included in the model as a control variable. As a result of the study, statistically significant empirical findings were obtained between the dependent variable and the independent variables. According to the findings of the study, it was concluded that the number of tourist arrivals increased as political instability and terrorism decreased.