World uncertainty and international tourist arrivals: does good governance make a difference?

Abstract

ABSTRACT World uncertainty has been rising steadily over the past two decades. While uncertainty affects all sectors negatively, tourism is much more vulnerable to shocks. Therefore, it is critical to explain what kind of environment is necessary for tourism resilience against global shocks. To this end, this paper examines the relationship between world uncertainty, governance, and tourism using the panel data method. According to the findings, while world uncertainty affects tourism negatively, good governance contributes to tourism development. More importantly, good governance moderates the negative effect of world uncertainty on tourism.