Impact of Terrorism on Tourism Industry of Pakistan : An Econometric Estimation

Abstract

Purpose – The main objective of this study is to find out the impact of terrorism on tourism industry of Pakistan. Design/methodology/approach – Regression statistical tool is used to examine the empirical finding of this study based on my sample data. Multiple regression models are used for finding the relationship between tourism, terrorism, destinations and political instability. One dependent variable is used to measure tourism industry that is foreign tourist arrival. Whereas, five independent variables are used number of terrorist events, number of fatalities due to terror attacks, number of injuries due to terror attacks, number of destinations and political instability in the country. The sample data collected of all the variables for the time period of ten years from 2003 to 2013 on monthly basis. Results – In developing country like Pakistan terrorism events, injuries due to terrorism, destinations and political instability has statistically significant relationship with foreign tourist arrival and fatalities due to terror attacks have insignificant relationship with foreign tourist arrival. Originality/value – This is the first study that conducted on Pakistan foreign tourist arrival and concludes the result on empirical basis. It is being done for the 1st time and all the data has been collected by the researcher from secondary source.