Tourism plays a key role worldwide. It is seen as an industry that brings in external revenues and is likely among the most impacted sectors by exchange rate fluctuations. The aim of this paper is to analyse the impact of exchange rate on inbound tourism in the Euro zone. Our study is based on 19 countries that have adopted the euro as their currency during the period 1999- 2018. Using panel data, econometrics based on the Seemingly Unrelated Regression (SUR) method. Empirical results demonstrate that exchange rate has a significant negative impact on inbound tourism, and at the same time there is a significant positive effect of GDP on it. Therefore, it is of a great importance to devalue the Euro currency so that attracting more tourists towards the Euro area.
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In-Text Citation: (Brahim, 2022)
To Cite this Article: Brahim, R. (2022). The Impact of Exchange Rate on Tourism Demand in the Euro Area (Using Panel Data Approach). International Journal of Academic Research in Business and Social Sciences, 12(4), 384–395.
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