The Effects of Terrorism on the Travel and Tourism Industry

Abstract

The impact of terrorism on the travel and tourism industry can be enormous. It can lead to unemployment, homelessness, deflation, and many other social and economic ills. The contribution of tourism for many countries is so great that any downturn in the industry is a cause of major concern for many governments. The repercussions are left in many other industries associated with tourism like airlines, hotels, restaurants and shops that cater to the tourists and allied services. Terrorism is an enigmatic and compelling phenomenon, and its relationship with tourism is complex and multifaceted. This paper aims to clarify this relationship and examines the relationship between selected factors and tourists’ decision-making process for destination choice. Tourists’ risk perception associated with terrorism served as a basis for the analysis.

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