Democratic transition, political risk, economic instability, and tourist inflows: The case of Tunisia. Issue 5 (August 2021)

• Record Type: Journal Article
• Authors: Aloui, Chaker; Hamida, Hela Ben; Hkiri, Besma
• Is Part Of: Tourism economics. Volume 27:Issue 5(2021)
• Page Start: 1157
• Page End: 1165
• Publication Date: 2021-08
• Subjects: ARDL model -- economic risk -- political risk -- tourist arrivals -- wavelets; Tourism -- Periodicals; 338.4791
• DOI: 10.1177/1354816620913372
• Languages: English
• ISSNs: 1354-8166

Abstract

This article assesses the effect of the political risk and economic instability on the tourist arrivals in Tunisia using various wavelet methods. Our findings reveal a substantial effect of political risk over the short and medium terms, while the risk of economic effect is more perceptible over the long run. These outcomes are robust when using standard time series modeling. Terrorist incidents and political uneasiness increase the perception of risk and affect the tourism inflows over the short run. Governments are invited to indorse security and tourism safety because if not, the tourism demand will impede the economic growth over the long run.