Econometric Analysis on the Effect of Terrorism on Tourist Flows

This paper uses a cross-sectional gravity equation to measure the impact of terrorism on international tourist flows to 8 European destination countries. The theoretical framework provides a basis for measurements within the gravity equation. The data is averaged between the years 1991-2009 to give a unique perspective on terrorism effects over during the rise of its transparency. The data combines both international and domestic tourism data to investigate the impact of all terrorism within destination countries. The findings indicate that both the amount of terrorist attacks and the number of fatalities due to terrorism negatively impact tourist flows to European destination countries