HOW DO TOURISTS REACT TO POLITICAL VIOLENCE? AN EMPIRICAL ANALYSIS OF TOURISM IN EGYPT

This paper uses a detailed database of political violence in Egypt to study European and US tourists' attitudes towards a conflict region. We study the heterogeneous impacts of different dimensions of political violence and counter-violence on tourist flows to Egypt in the 1990s. Both US and EU tourists respond negatively to attacks on tourists, but are not influenced by casualties arising in confrontations between domestic groups. However, European tourists are sensitive to the counter-violence measures implemented by the Egyptian government. There is also evidence of arrivals of tourists into Egypt rising when fatalities in the Israeli/Palestinian conflict increase.