Does Crime Affect Inbound Tourism? Evidence From a Sub-national Perspective in Japan

Abstract

Inbound tourism is welcomed by many governments due to its numerous benefits for the destination country. Besides, crime is often considered a factor that negatively affects tourism; but empirical evidence does not universally support this perspective. Therefore, this study investigates the impact of crime on inbound tourism using Japan as a case study. For further investigating the spatial externalities of inbound tourism from a sub-national perspective, we employ spatial panel data models. The findings indicate that the total crime rate does not have a significant impact on inbound tourism, while the violent crime rate exhibits a significant negative effect. This suggests that the selection of crime variables is important. Additionally, the significant spillover effects underscore the importance of regional cooperation.