ABSTRACT Tourism thrives upon the benefits of providing safer and risk-free systems, yet empirical evidence in developing economies still needs to be explored. Our study examines how crime and terrorist activities impact tourist demand in Indian states. We use panel data for 27 Indian states and 2 Union Territories from 1993 to 2022. Our findings confirm the differential impact of violent and non-violent crimes on tourism demand in India. We find that a 10% increase in violent and non-violent crimes leads to a decline in tourist arrival by 5.2% and 1.6%, respectively. Further, the result shows that terror mortality exhibits an inverse relation with tourist inflows, whereas improvements in hotel beds attract tourist inflows. In addition, estimates confirm that more urban expenditures enhance tourist inflows, although the effects remain marginal. Our results are consistent in different econometrics specifications.
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