Does Blockade Deter Inbound Tourism? An Evidence from Qatar

27 Pages Posted: 20 Nov 2020

See all articles by Ghialy Yap

Ghialy Yap

Edith Cowan University; Financial Research Network (FIRN)

Shrabani Saha

University of Lincoln (UK) - Faculty of Business & Law

Ali Salman Saleh

Qatar University

Nelson Oly Ndubisi

Qatar University - College of Business and Economics

Saif Alsowaidi

Qatar University - College of Business and Economics

Date Written: November 7, 2020

Abstract

While tourism research on Qatar has been growing, the area is still understudied with many untapped research opportunities. This research focuses on the impact of the blockade on international tourist arrivals to Qatar. We adopt a standard tourism demand model and augment it with a blockade variable. To capture the effects of political incidence such as the blockade, we develop a dummy variable that characterizes the periods when the blockade on Qatar occurred.

The research model also includes origin-destination characteristic variables, such as tourism competitiveness, corruption perception and trade freedom. The main objective is to investigate whether the inclusion of these control variables can minimize the effects of the blockade. Data are based on an unbalanced panel of 552 observations, with a total of 47 countries of origin from 2007 to 2018. The result confirms the convergence theory of growth (Cuaresmaa, Ritzberger-Gru¨nwald and Silgoner, 2008). The strength and sign of the coefficients for the two economic control variables, namely GDP growth and currency appreciation in the sourced country are as expected- an increase in income in the sourced country increases people’s affordability to travel and in turn enhances growth in tourist numbers in Qatar significantly. Moreover, the coefficients of the main focus variable, the blockade, show the expected negative sign and statistical significance (1% level of significance), implying that the blockade imposes constraints on visitors to Qatar from neighboring countries, which in turn has adverse effect on the number of tourist arrivals.

Keywords: Inbound tourism; growth, blockade; tourism competitiveness; GMM estimators; Qatar

JEL Classification: C12, C13, C23, L83, N15

Suggested Citation

Yap, Ghialy C. L. and Saha, Shrabani and Saleh, Ali Salman and Ndubisi, Nelson Oly and Alsowaidi, Saif, Does Blockade Deter Inbound Tourism? An Evidence from Qatar (November 7, 2020). Available at SSRN: https://ssrn.com/abstract=3726497 or http://dx.doi.org/10.2139/ssrn.3726497

Ghialy C. L. Yap

Edith Cowan University ( email )

Joondalup Campus
Perth
Joondalup 6027 WA
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Shrabani Saha

University of Lincoln (UK) - Faculty of Business & Law ( email )

Lincoln
United Kingdom

Nelson Oly Ndubisi

Qatar University - College of Business and Economics ( email )

2713 Doha
Qatar

Saif Alsowaidi

Qatar University - College of Business and Economics ( email )

2713 Doha
Qatar

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