Economic Uncertainty and Tourism Consumption

Abstract

This study examines the influence of economic uncertainty on tourism. The key hypothesis to test is that while economic uncertainty reduces outbound tourism, it may boost domestic tourism due to the economic-stagnant effects. Utilizing the framework of the theory of reasoned action to analyze a global sample of 124 countries over the period 1996–2017, we find some initial evidence showing that an increase in economic uncertainty encourages domestic tourism while reducing outbound tourism in the global sample. Notably, while these effects are consistent in the upper-middle-income economies, an increase in uncertainty has a positive impact on both domestic and outbound tourism in lower-middle-income economies and a negative impact on both domestic and outbound tourism in higher-income economies. The key implementation of this study is that tourism development is not always associated with economic development and stability; sometimes it could be a signal of economic stagnancy and inactiveness.

Publication DOI: https://doi.org/10.1177/1354816620981519
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
College of Business and Social Sciences > Aston Business School
Additional Information: https://creativecommons.org/licenses/by/4.0/This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access pages (https://us.sagepub.com/en-us/nam/open-access-at-sage).
Uncontrolled Keywords: consumption behavior,domestic tourism,economic shocks,economic uncertainty,outbound tourism,Geography, Planning and Development,Tourism, Leisure and Hospitality Management
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
https://journal ... 354816620981519 (Publisher URL)
PURE Output Type: Article
Published Date: 2020-12-24
Published Online Date: 2020-12-24
Accepted Date: 2020-11-23
Authors: Canh, Nguyen Phuc
Su, Dinh Thanh
Nguyen, Bach (ORCID Profile 0000-0003-1527-7443)

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