Abstract:
Our research empirically examines the impact of good governance on the US tourism demand over the period 1999-2020. We use a data set of 13 different tourism markets to avoid any aggregation bias while controlling for economic and political factors. Our empirical results show that two dimensions of governance, i) the political stability and absence of violence/terrorism and ii) government effectiveness, exert a statistically significant positive impact on the US tourism demand. We also find that the party in control of the White House has a statistically significant influence on tourism demand. These empirical findings have several implications for accurate demand forecasting as well as developing sustainable tourism policies.
