Discussion Paper Details

Please find the details for DP14275 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Terror and Tourism: The Economic Consequences of Media Coverage

Author(s): Timothy J. Besley, Thiemo Fetzer and Hannes Felix Mueller

Publication Date: January 2020


Programme Area(s): Development Economics

Abstract: This paper studies the economic effects of news-coverage of violent events. To do so, we combine monthly aggregated and anonymized credit card data on tourism spending from 114 origin countries and 5 tourist destinations (Turkey, Egypt, Tunisia, Israel and Morocco) with a large corpus of more than 446 thousand newspaper articles covering news on the 5 destination countries from a subset of 57 tourist origin countries. We document that violent events in a destination are followed by sharp spikes in negative reporting at origin and contractions in tourist activity. Media coverage of violence has a large independent effect on tourist spending beyond what can be accounted for by controlling for the incidence of violence. We develop a model in which tourist beliefs, actual violence and media reporting are modelled together. This model allows us to quantify the effect of violent events and reporting.

For full details and related downloads, please visit:

Bibliographic Reference

Besley, T, Fetzer, T and Mueller, H. 2020. 'Terror and Tourism: The Economic Consequences of Media Coverage'. London, Centre for Economic Policy Research.