Terrorism and the Regional and Religious Risk Perception of Foreigners: The Case of German Tourists

Hamburg Contemporary Economic Discussion Paper No. 24

29 Pages Posted: 7 Feb 2010  

Gabriel M. Ahlfeldt

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Bastian Franke

Independent

Wolfgang Maennig

Universit├Ąt Hamburg, Faculty of Business, Economics and Social Sciences

Date Written: 2009

Abstract

This paper analyses how German tourists react to unanticipated shocks that alter their risk perception of selected tourism destinations. Using a difference-in-difference strategy which flexibly accounts for macroeconomic conditions and also addresses potential problems of serial correlation, we isolate significant effects of the 9/11 (2001) terrorist attacks, as well as for the attacks in Egypt (1997), Tunisia (2002), Morocco (2003) and Indonesia (2003). These terror attacks impacted especially on Islamic countries all over the world, indicating a transmission mechanism driven by ethnic and religious proximity. At the same time, tourism into Islamic countries was temporarily substituted by tourism to (south) European countries.

Keywords: Terrorism, 9/11, Islamic Countries, Tourism Demand

JEL Classification: R19, D89

Suggested Citation

Ahlfeldt, Gabriel M. and Franke, Bastian and Maennig, Wolfgang, Terrorism and the Regional and Religious Risk Perception of Foreigners: The Case of German Tourists (2009). Hamburg Contemporary Economic Discussion Paper No. 24. Available at SSRN: https://ssrn.com/abstract=1544289 or http://dx.doi.org/10.2139/ssrn.1544289

Gabriel M. Ahlfeldt

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
WC2A 2AE London
United Kingdom

HOME PAGE: http://personal.lse.ac.uk/ahlfeldg/

Bastian Franke

Independent ( email )

No Address Available

Wolfgang Maennig (Contact Author)

Universit├Ąt Hamburg, Faculty of Business, Economics and Social Sciences ( email )

Von-Melle-Park 5
Hamburg, 20146
Germany

Paper statistics

Downloads
72
Rank
270,409
Abstract Views
1,064