Does proximity to conflict affect tourism: Evidence from NATO bombing.

ABSTRACT: Although conflict, war, violence, and terrorism affect tourism, research that identifies possible channels of these effects is scarce. We explore if the adverse effects are channelled through proximity to conflict areas. We use the conflict in Kosovo in 1999 and the country Croatia as a quasi-natural experiment and take advantage of the specific north-west to south-east orientation of Croatian Adriatic counties to identify the effect of NATO bombing in Kosovo on tourism outcomes as well as the potential proximity channel. Using data on the population of Croatian firms and the difference-in-differences identification strategy we find that tourism companies' revenues decreased significantly due to NATO bombing, especially in accommodation services and in companies with 50 or more employees.

SUBMITTER: Tkalec M 

PROVIDER: S-EPMC8528334 | biostudies-literature | 2021

REPOSITORIES: biostudies-literature