Impacts of terrorism on Tourism

Document Type:Coursework

Subject Area:Business

Document 1

This study seeks to establish how terrorism affects the industry. Particularly, the research seeks to find out how perception affects tourists’ decision on travelling to a region that is perceived to be prone to a terrorist attack. The research uses secondary data from the World Travel and Tourism Report for studies that were conducted in Paris, Ireland in 2016. Contents 1 Introduction 4 1. Background and Justification of the Report Idea 4 1. Correlation Analysis 27 4. Correlations 27 4. Regression 28 5 Conclusion 30 5. Recommendations 31 6 References 33 7 Appendices 36 1 Introduction Over the past years, tourism has been affected by several unpredictable events such as political unrest, financial crises, natural disasters, health epidemics among other factors with negative impacts on the tourism industry. Over the recent years, terrorism attacks in Europe have become rampant and have gained a lot of media attention which further raises anxiety and fear among travelers.

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The 2016 Brussels airport attack turned Brussels into a scene of terror after terrorists killed 31 persons and wounded hundreds of the travelers as well as the staff at the airport and later on, ISIS claimed responsibility for this attack (Hume et al. p. In this case, it is true that terrorism is no longer a problem of the Middle East, but it has spread out to the European countries (Moklyak 2016, p. The mass media has also played a critical role in the rise and spread of the Islamic State and this is associated with the uncontrolled use of the social media which makes it easier for terrorists to recruit members and have an easier and faster means of spreading propaganda. Media outlets such as online news platforms, social media, and television news may influence a person’s decision-making process (Chowdhury, Raj, Griffin, and Clarke 2017, p.

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Thus, there is a need to understand how terrorism affects the tourism industry and recommend possible strategies to counteract the effects of terrorism. Research Objective and Organization of the Report This research aims at understanding how the perceived risk of terrorism impacts the tourism industry. The first part of the paper provides a critical overview of terrorism and its effects on tourism across the globe. Next, the literature review examines the theoretical framework and develops the research gap for this study and analyzes the risk of decision-making to a travel destination. The third part presents the methodology of the data collection strategy, data sources, and variables selected for this study. S. GDP (“World Travel & Tourism Council 2014a, p. Currently, Brazil is ranked 6th out of the 184 countries that depend on tourism whereby international tourism generates about 9.

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percent of the country’s GDP (World Travel & Tourism Council 2014a, p. The World Factbook 2014, p. Facilitators have a great influence during the initial stages of decision-making, whereas inhibitors influence a tourist’s decision at the end of the process of decision-making, especially when outcomes become more serious (Jackson 2016, p. Additionally, Gretzel, Sigala, Xiang, and Koo (2015, p. developed a decision-making framework with which external influence of terrorism on the process of decision-making affects tourists’ decision to travel, and the researcher succeeds in her analysis by applying literature from psychological tourism on risk perception theories. When talking about the quality of life, Lepp and Gibson (2016, p. say that terrorism is the opposite of tourism for several reasons. Research highlights four sources of economic costs of terrorism which include the loss of revenues, a decline in the future stock capital, destruction, of infrastructure, and opportunity of preventing terrorism (Hume & Sanchez 2016, p.

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Aside from these direct costs associated with terrorism, other hidden costs include additional advertisement costs which are meant to attract new or more visitors to the region, security enforcement expenses and reconstruction costs for the damaged infrastructure (Johnston 2017, p. Conceptual Framework A conceptual framework is a representation of the researcher’s synthesis of literature on how he or she will explain a particular phenomenon under study. It maps all the actions required in a survey by applying what has been covered in previous studies. Additionally, it is the researcher’s understanding on how the study variables relate with one another. A quantitative research is empirical and guarantees the study’s validity through clarification. On the contrary, qualitative research design is any other method whose findings are arrived at without following any quantitative means (Rahman 2016, p.

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By considering the aim of this study of understanding the impacts of terrorism on the tourism industry, the researcher has chosen the quantitative research design for the study. DATA SOURCES AND DATA VARIABLES The data for this study is obtained from the World Travel Report about a study done in Paris in 2016. The information is collected from secondary sources from the World Travel Report 2017and presented in the descriptive form. the data analysis step is a necessary step because it helps to filter out the unnecessary information and establish a strong foundation for making important decisions. Table 1: Frequencies and cumulative frequencies of the age of the respondents Age Frequency Percentage Cumulative percentage 18-24 25-34 35-44 45-54 Above 55 Total 10 28 16 36 10 100 10 28 16 36 10 100 10 38 54 90 100 Source: World Travel and Tourism Report Figure 2: Age of Participants Table 2: Gender of the participants Gender Frequency Percentage Cumulative percentage Female 65 65 65 Male 35 35 100 Total 100 100 Source: World Travel and Tourism Report Figure 3: Gender of the participants Table 3: Occupation of the participants Occupation Frequency Percentage Cumulative percentage Public sector employment 23 23 23 Private sector employment 38 38 61 Self-employed 16 16 77 Others 23 23 100 Total 100 100 Source: World Travel and Tourism Report 2017, p.

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Figure 4: Occupation of the participants Table 4: How often do the respondents travel outside Ireland? Frequency Percentage Cumulative percentage Once/ year 55 55 55 More frequent 45 45 100 Total 100 100 Source: World Travel and Tourism Report 2017, p. Figure 5: How often the participants Travel to Paris Table 5: The General purpose of travel Purpose Frequency Percentage Cumulative percentage Leisure 40 40 40 Education 33 33 73 Business 27 27 100 Total 100 100 Source: World Travel and Tourism Report 2017, p. Figure 6: The Purpose of travel Table 6: Have participants visited Paris? Valid Frequency Percentage Cumulative percentage Yes 80 80 80 No 20 20 100 Total 100 100 Source: World Travel and Tourism Report 2017, p. Frequency Percentage Cumulative percentage Very Strong Association 28 28 28 Strong association 42 42 70 Undecided 10 10 80 Weak association 8 8 88 Very weak association 12 12 100 Total 100 100 Source: World Travel and Tourism Report 2017, p. Figure 15: Participants’ view of the connection between perceived risk and the number of tourists visiting a tourist destination.

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Table 14: The participants’ view that the media plays a critical role in promoting tourist destinations Frequency Percentage Cumulative percentage Strongly agree 25 25 25 Agree 45 45 70 Undecided 10 10 80 Disagree 8 8 88 Strongly disagree 12 12 100 Total 100 100 Source: World Travel and Tourism Report 2017, p. Figure 15: The participants’ view that the media plays a critical role in promoting tourist destinations The results from this analysis indicate that majority of the participants believe that media has a critical influence on risk traveling to a particular travel destination which is prone to terrorist attacks. Thus, it can be inferred that media has substantial control over a person’s decision to travel. percent, and this also implies a strong relationship between tourism and media coverage. Correlations Terrorism Tourism Media coverage Perceived risk Terrorism Pearson correlation coefficient sig.

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tailed). N 1 100. Tourism Pearson correlation coefficient sig. A regression analysis tells how much a unit change in independent variables impacts the dependent variable. This implies that the regression model is sound and it can account for 92. percent of the variability in tourism. Additionally, the ANOVA table shows that media coverage, tourism, and perceived risk are statistically significant since they are less than. The beta value between terrorism and tourism shows that there a unit change in terrorism will cause 52. Regression Residual Sum total 150. b Coefficients Model Unstandardized coefficients Standardized coefficients t Sig. β Std. Error. β Constant -. Moreover, it is evident that tourists are likely to respond positively to the positive media coverage and marketing activities. With these regards, it is evident that positive media portrayal will reduce the perceived risk and terrorism attacks which may discourage tourists from touring a particular destination.

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Although the study does not show whether tourism can be impaired or enhanced, based on the previous literature, it is evident that perceived risk is less serious compared to actual risks. Recommendations Based on the research findings, it is evident that perceived risk affects tourist’s decision to travel and this implies that the government must invest in security to build tourists’ confidence and ensure that their safety is guaranteed. Additionally, for countries to increase the number of tourist attraction to their region, they need to market and brand their countries as tourist destinations. T. Crime and international tourism.  Journal of Labor Research, 35(1), pp. Baker, D. M. Minor (2013).  International Business: The Challenge of Global Competition. Botelho, G. Cruickshank, P. and Shoichet, C.

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The decline of tourism in Northern Ireland: The causes.  Tourism Management, 14(3), pp. Chowdhury, A. Raj, R. Griffin, K. Available at https://www. thelocal. fr/20161111/paris-still-fighting-to-woo-back-tourists-one-year-after-attacks. Accessed on July 6, 2018]. Gretzel, U. Here’s what we know about the Brussels Terror attacks. CNN. Retrieved from: http://edition. cnn. com/2016/03/23/europe/brussels-belgium-attacks-whatwe-know/.  Tourism Management, 29(4), pp. Luxton, E. March. Is Terrorism in Europe at a Historical High? In World Economic Forum (Vol. McCulloch, W.  Critical Studies on Terrorism, 9(2), pp. Moklyak, V. V. Modern terrorism as a social phenomenon: nature and forms.  Probs. Santana-Gallego, M. RossellÃ-Nadal, J. and Fourie, J. The effects of terrorism, crime and corruption on tourism.  Economic Research Southern Africa (ERSA). White, J. R. Terrorism and homeland security. Cengage Learning. Wolff, K. World Travel & Tourism Council.

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b. Travel & Tourism Economic Impact 2014: Brazil. Retrieved from http://www. wttc. European arrivals to Brussels were down by nearly 30% between April 14 and August 31 2016. Source: https://skift. com/2016/04/06/4-charts-showing-terrorisms-impact-on-european-travel-bookings/. Appendix 2: Cancellations for trips to Brussels affected demand during the summer months of 2016 due to perceived risks. Source: https://skift.

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