e-ISSN 2231-8534
ISSN 0128-7702

Home / Regular Issue / JSSH Vol. 30 (4) Dec. 2022 / JSSH-8494-2021


Impact of Governance Structure, Infrastructure, and Terrorism on Tourism

Malik Fahim Bashir, Syeda Qurat Ul Ain, Yasir Bin Tariq and Naveed Iqbal

Pertanika Journal of Social Science and Humanities, Volume 30, Issue 4, December 2022


Keywords: Governance structure, infrastructures, panel ARDL, terrorism, tourism

Published on: 15 December 2022

This study explores the effect of governance structure, ICT infrastructure, physical infrastructure, and terrorism on tourism receipts for 102 countries. The study uses 18-year data ranging from 2002–2019. To test the relationship among variables in the short and long run, Panel ARDL is employed. Furthermore, this study extended the analysis by dividing the overall sample into five regions and four income groups. Results revealed that all variables are cointegrated. Pooled Mean Group model’s results show that physical and ICT infrastructure significantly impact tourism. Governance structure matters in high-income countries only. However, surprisingly terrorism incidents were not negatively affecting tourism receipts in the low and lower-middle-income countries. Terrorism was negatively impacting tourism in upper-middle-income countries only. Furthermore, ICT, physical infrastructure, and governance significantly affect tourism in different regions of the world. The causality test suggested unidirectional causation from tourism to terrorism and bidirectional causality for physical infrastructure and tourism. This study has important policy implications for all tourism and travel industry stakeholders.

  • Adeloye, D., & Brown, L. (2018). Terrorism and domestic tourist risk perceptions. Journal of Tourism and Cultural Change, 16(3), 217-233.

  • Adeola, O., & Evans, O. (2019). Digital tourism: Mobile phones, internet and tourism in Africa. Tourism Recreation Research, 44(2), 190-202.

  • Adeola, O., & Evans, O. (2020). ICT, infrastructure, and tourism development in Africa. Tourism Economics, 26(1), 97-114.

  • Alford, P., & Clarke, S. (2009). Information technology and tourism a theoretical critique. Technovation, 29(9), 580-587.

  • Almuhrzi, H., Scott, N., & Alriyami, H. (2017). Introduction. In H. Almuhrzi, H. Alriyami, & N. Scott (Eds.), Tourism in the Arab World (pp. 1-15). Multilingual Matters.

  • Alvarez, M. D., & Campo, S. (2014). The influence of political conflicts on country image and intention to visit: A study of Israel’s image. Tourism Management, 40, 70-78.

  • Anwar, M. A., Carmody, P., Surborg, B., & Corcoran, A. (2014). The diffusion and impacts of information and communication technology on tourism in the Western Cape, South Africa. Urban Forum, 25(4), 531-545.

  • Araña, J. E., & León, C. J. (2008). The impact of terrorism on tourism demand. Annals of Tourism Research, 35(2), 299-315.

  • Asongu, S. A., & Acha-Anyi, P. N. (2020). Global tourism and waves of terror: Perspectives from military expenditure. Journal of Policy Research in Tourism, Leisure and Events, 12(2), 239-261.

  • Ayuningtyas, D., & Ariwibowo, D. A. (2020). The strategic role of information communication technology in succeeding medical tourism. Enfermería Clínica, 30, 170-173.

  • Baggio, R., & Sainaghi, R. (2011). Complex and chaotic tourism systems: Towards a quantitative approach. International Journal of Contemporary Hospitality Management, 23(6), 840-861.

  • Bassil, C. (2014). The effect of terrorism on tourism demand in the Middle East. Peace Economics, Peace Science and Public Policy, 20(4), 669-684.

  • Bassil, C., Saleh, A. S., & Anwar, S. (2019). Terrorism and tourism demand: A case study of Lebanon, Turkey and Israel. Current Issues in Tourism, 22(1), 50-70.

  • Bayram, G. E. (2020). Impact of information technology on tourism. In A. Hassan & A. Sharma (Eds.), The Emerald Handbook of ICT in Tourism and Hospitality (pp. 243-257). Emerald Publishing Limited.

  • Bethapudi, A. (2013). The role of ICT in tourism industry. Journal of Applied Economics and Business, 1(4), 67-79.

  • Bhattarai, K., Conway, D., & Shrestha, N. (2005). Tourism, terrorism and turmoil in Nepal. Annals of Tourism Research, 32(3), 669-688.

  • Bramo, F. (2013). The role of railway infrastructure on the tourism development (case Albania). Albanian Journal of Agricultural Sciences, 12(2), 297-300.

  • Buhalis, D. (2004). eAirlines: strategic and tactical use of ICTs in the airline industry. Information & Management, 41(7), 805-825.

  • Buhalis, D. (2020). Technology in tourism-from information communication technologies to eTourism and smart tourism towards ambient intelligence tourism: A perspective article. Tourism Review, 75(1), 267-272.

  • Buigut, S., Kapar, B., & Braendle, U. (2021). Effect of regional terrorism events on Malaysian tourism demand. Tourism and Hospitality Research, 22(3), 271-283.

  • Catudan, J. M. J. (2016). The impact of tourist arrivals, physical infrastructures, and employment, on regional output growth. Procedia - Social and Behavioral Sciences, 219, 175-184.

  • Causevic, S., & Lynch, P. (2013). Political (in)stability and its influence on tourism development. Tourism Management, 34, 145-157.

  • Choudhary, S. A., Khan, M. A., Sheikh, A. Z., Jabor, M. K., Nordin, M. S. bin, Nassani, A. A., Alotaibi, S. M., Abro, M. M. Q., Vo, X. V., & Zaman, K. (2020). Role of information and communication technologies on the war against terrorism and on the development of tourism: Evidence from a panel of 28 countries. Technology in Society, 62, Article 101296.

  • Currie, C., & Falconer, P. (2014). Maintaining sustainable island destinations in Scotland: The role of the transport-tourism relationship. Journal of Destination Marketing & Management, 3(3), 162-172.

  • Detotto, C., Giannoni, S., & Goavec, C. (2021). Does good governance attract tourists? Tourism Management, 82, Article 104155.

  • Dlugosz, D. B., Dlugosz, M. M., Dlugosz, A. P., & Rzetala, M. (2022). The impact of revolutions and terrorist attacks on tourism. Case study of Egypt. Journal of Environmental Management and Tourism, 13(2), 354-366.

  • Dorcic, J., Komsic, J., & Markovic, S. (2019). Mobile technologies and applications towards smart tourism – state of the art. Tourism Review, 74(1), 82-103.

  • Dritsakis, N. (2004). Cointegration analysis of German and British tourism demand for Greece. Tourism Management, 25(1), 111-119.

  • Dumitrescu, E. I., & Hurlin, C. (2012). Testing for Granger non-causality in heterogeneous panels. Economic Modelling, 29(4), 1450-1460.

  • Fayissa, B., Nsiah, C., & Tadasse, B. (2008). Impact of tourism on economic growth and development in Africa. Tourism Economics, 14(4), 807-818.

  • Fernando, S., Bandara, J. S., Liyanaarachch, S., Jayathilaka, R., & Smith, C. (2013). Political violence and volatility in international tourist arrivals: The case of Sri Lanka. Tourism Analysis, 18(5), 575-586.

  • Fletcher, J., & Morakabati, Y. (2008). Tourism activity, terrorism and political instability within the commonwealth: The cases of Fiji and Kenya. International Journal of Tourism Research, 10(6), 537-556.

  • Fourie, J., Rosselló-Nadal, J., & Santana-Gallego, M. (2020). Fatal attraction: How security threats hurt tourism. Journal of Travel Research, 59(2), 209-219.

  • Gretzel, U., Sigala, M., Xiang, Z., & Koo, C. (2015). Smart tourism: Foundations and developments. Electronic Markets, 25(3), 179-188.

  • Guemide, B., Benachaiba, C., & Maouche, S. (2019). Integrating ICT-based applications for sustainable tourism development in Algeria. Journal of Tourism & Hospitality, 8(5), 1-15.

  • Haider, A., ud Din, M., & Ghani, E. (2011). Consequences of political instability, governance and bureaucratic corruption on inflation and growth: The case of Pakistan. The Pakistan Development Review, 50(4), 773-807.

  • Isaac, R. K. (2021). An exploratory study: The impact of terrorism on risk perceptions. An analysis of the german market behaviours and attitudes towards Egypt. Tourism Planning and Development, 18(1), 25-44.

  • Ishikawa, N., & Fukushige, M. (2007). Impacts of tourism and fiscal expenditure to remote islands: The case of the Amami islands in Japan. Applied Economics Letters, 14(9), 661-666.

  • Kanwal, S., Rasheed, M. I., Pitafi, A. H., Pitafi, A., & Ren, M. (2020). Road and transport infrastructure development and community support for tourism: The role of perceived benefits, and community satisfaction. Tourism Management, 77, Article 104014.

  • Karamelikli, H., Khan, A. A., & Karimi, M. S. (2020). Is terrorism a real threat to tourism development? Analysis of inbound and domestic tourist arrivals in Turkey. Current Issues in Tourism, 23(17), 2165-2181.

  • Karanasios, S., & Burgess, S. (2008). Tourism and internet adoption: A developing world perspective. International Journal of Tourism Research, 10(2), 169-182.

  • Kaya, M. G., Onifade, S. T., & Akpınar, A. (2022). Terrorism and tourism: An empirical exemplification of consequences of terrorist attacks on tourism revenues in Turkey. An International Interdisciplinary Journal Original Research Article, 70(1), 28-36.

  • Kumar, S., & Sharma, D. (2017). Study of ICT and tourism led growth in India and Thailand. Social Science Asia, 3(3), 24-31.

  • Kurihara, T., & Wu, L. (2016). The Impact of high speed rail on tourism development: A case study of Japan. The Open Transportation Journal, 10(1), 35-44.

  • Lanouar, C., & Goaied, M. (2019). Tourism, terrorism and political violence in Tunisia: Evidence from Markov-switching models. Tourism Management, 70, 404-418.

  • Li, L. S. Z., Yang, F. X., & Cui, C. (2019). High-speed rail and tourism in China: An urban agglomeration perspective. International Journal of Tourism Research, 21(1), 45-60.

  • Liu, A., & Wall, G. (2006). Planning tourism employment: A developing country perspective. Tourism Management, 27(1), 159-170.

  • Liu, Y., & Shi, J. (2019). How inter-city high-speed rail influences tourism arrivals: Evidence from social media check-in data. Current Issues in Tourism, 22(9), 1025-1042.

  • Llorca-Vivero, R. (2008). Terrorism and international tourism: New evidence. Defence and Peace Economics, 19(2), 169-188.

  • Lutz, B. J., & Lutz, J. M. (2020). Terrorism and tourism in the Caribbean: A regional analysis. Behavioral Sciences of Terrorism and Political Aggression, 12(1), 55-71.

  • Maltese, I., & Zamparini, L. (2021). Transport modes and tourism. In R. Vickerman (Ed.), International Encyclopedia of Transporation (pp. 26-31). Elsevier.

  • Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370-396.

  • Masson, S., & Petiot, R. (2009). Can the high speed rail reinforce tourism attractiveness? The case of the high speed rail between Perpignan (France) and Barcelona (Spain). Technovation, 29(9), 611-617.

  • McElroy, J. L. (2006). Small island tourist economies across the life cycle. Asia Pacific Viewpoint, 47(1), 61-77.

  • Musa, I. J., & Ndawayo, B. A. (2011). The role of transportation in the development of tourism in Nigeria. Tourismos, 6(1), 297-305.

  • Mustafa, A. M. M. (2019). The impact of infrastructure on tourism: The case of Sri Lanka. Asian Social Science, 15(7), 174.

  • Muthoni, D. (2021). Effect of terrorism on the performance of tourism industry. A critical literature review. International Journal of Modern Hospitality and Tourism, 1(1), 58-71.

  • Nadeem, M. A., Liu, Z., Xu, Y., Nawaz, K., Malik, M. Y., & Younis, A. (2020). Impacts of terrorism, governance structure, military expenditures and infrastructures upon tourism: Empirical evidence from an emerging economy. Eurasian Business Review, 10(1), 185-206.

  • National Consortium for the Study of Terrorism and Responses to Terrorism. (2022). Global Terrorism Database 1970 - 2020.

  • Neumayer, E., & Plümper, T. (2016). Spatial spill-overs from terrorism on tourism: Western victims in Islamic destination countries. Public Choice, 169(3), 195-206.

  • O’Brien, A. (2012). Wasting a good crisis: Developmental failure and Irish tourism since 2008. Annals of Tourism Research, 39(2), 1138-1155.

  • Öcal, N., & Yildirim, J. (2010). Regional effects of terrorism on economic growth in Turkey: A geographically weighted regression approach. Journal of Peace Research, 47(4), 477-489.

  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels (IZA Discussion paper no. 1240). IZA.

  • Pesaran, M. H., Pesaran, M. H., Shin, Y., & Smith, R. P. (1999). Pooled mean group estimation of dynamic heterogeneous panels. Journal of the American Statistical Association, 94(446), 621-634.

  • Raza, S. A., & Jawaid, S. T. (2013). Terrorism and tourism: A conjunction and ramification in Pakistan. Economic Modelling, 33, 65-70.

  • Roehl, W. S., & Fesenmaier, D. R. (1992). Risk perceptions and pleasure travel: An exploratory analysis. Journal of Travel Research, 30(4), 17-26.

  • Saayman, A., & Saayman, M. (2008). Determinants of inbound tourism to South Africa. Tourism Economics, 14(1), 81-96.

  • Saha, S., & Yap, G. (2014). The moderation effects of political instability and terrorism on tourism development. Journal of Travel Research, 53(4), 509-521.

  • Santana-Gallego, M., & Fourie, J. (2020). Tourism falls apart: How insecurity affects African tourism. Tourism Economics, 28(4), 995-1008.

  • Seabra, C., Reis, P., & Abrantes, J. L. (2020). The influence of terrorism in tourism arrivals: A longitudinal approach in a Mediterranean country. Annals of Tourism Research, 80, Article 102811.

  • Sloboda, B. W. (2003). Assessing the effects of terrorism on tourism by use of time series methods. Tourism Economics, 9(2), 179-190.

  • Stankova, M., Tsvetkov, T., & Ivanova, L. (2019). Tourist development between security and terrorism: Empirical evidence from Europe and the United States. Oeconomia Copernicana, 10(2), 219-237.

  • Sun, Y., & Luo, M. (2021). Impacts of terrorist events on tourism development: Evidence from Asia. Journal of Hospitality & Tourism Research, 46(4), 696-723.

  • Tang, C. F. (2018). The impacts of governance and institutions on inbound tourism demand: Evidence from a dynamic panel data study. Asia Pacific Journal of Tourism Research, 23(10), 1000-1007.

  • Tussyadiah, I. P., & Zach, F. J. (2012). The role of geo-based technology in place experiences. Annals of Tourism Research, 39(2), 780-800.

  • Vujko, A., & Gajic, T. (2014). The government policy impact on economic development of tourism. Ekonomika Poljoprivrede, 61(3), 789-804.

  • Walters, G., Wallin, A., & Hartley, N. (2018). The threat of terrorism and tourist choice behavior. Journal of Travel Research, 58(3), 370-382.

  • Wang, S., & Cheung, W. (2004). E-business adoption by travel agencies: Prime candidates for mobile e-business. International Journal of Electronic Commerce, 8(3), 43-63.

  • World Economic Forum. (2019). The travel & tourism competitiveness report 2019: Travel and tourism at a tipping point.

  • World Economic Forum. (2022). Travel & tourism development index 2021: Rebuilding for a sustainable and resilient future (Insight Report).

  • World Tourism Organization. (2013). Tourism in the Americas – 2013 Edition.

  • World Travel and Tourism Council. (2021). Travel and tourism: Economic impact 2021. Economic Impact and Trends 2021.pdf

  • Ziółkowska-Weiss, K., & Pieron, E. (2021). Assessment of the impact of terrorism on tourism in the 21st century: The example of Egypt. Przedsiębiorczość - Edukacja, 17(1), 244-256.

ISSN 0128-7702

e-ISSN 2231-8534

Article ID


Download Full Article PDF

Share this article

Related Articles