Geopolitical risks and tourism in a developed economy: Hong Kong

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dc.contributor Troster, Victor Emilio Huang, ShangQi 2021 2022-04-01T10:49:17Z 2022-04-01T10:49:17Z 2021-09-03
dc.description.abstract [eng] Geopolitical risk is one of the factors that affects the decisions of consumption and investment, and it is regarded a business threat in the world. In this thesis, we test the effect of geopolitical risks on tourism in Hong Kong during 2010-2019 by applying a vector autoregressive (VAR) model between tourist arrivals in Hong Kong and a recently introduced index – the geopolitical risk (GPR) index – to measure geopolitical risks, with 3 control variables – oil prices, global economic policy uncertainty (EPU), and the US equity market volatility (VIX). Our results reveal that geopolitical risk has a long-lasting negative effect on tourist arrivals in Hong Kong, although this effect decreases over time. We also find that this negative influence is more moderate in Hong Kong in comparison with other regions such as Turkey and India. Therefore, tourism in Hong Kong has stronger resilience than tourism in emerging economies. Our findings provide potential implications by advancing our understanding of how geopolitical risk affects tourism in a developed economy. Policymakers and the government should recognize the adverse effects of geopolitical risk and monitor the GPR index to avoid possible decline of tourist arrivals caused by geopolitical risk. ca
dc.format application/pdf
dc.language.iso eng ca
dc.publisher Universitat de les Illes Balears
dc.rights all rights reserved
dc.rights info:eu-repo/semantics/openAccess
dc.subject 338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus ca
dc.subject.other Geopolitical risks ca
dc.subject.other tourism ca
dc.subject.other developed economy ca
dc.subject.other Hong Kong ca
dc.title Geopolitical risks and tourism in a developed economy: Hong Kong ca
dc.type info:eu-repo/semantics/masterThesis ca
dc.type info:eu-repo/semantics/publishedVersion 2022-02-01T07:20:58Z

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