Severity versus Frequency of Acts of Terrorism: Which Has a Larger Impact on Tourism Demand?

Abstract

The results of a study conducted on the impact of acts of terrorism on tourism demand in Israel during the period of May 1991 to May 2001 confirmed the hypothesis that the frequency of acts of terrorism had caused a larger decline in international tourist arrivals than the severity of these acts. The implications of this study are that in cases similar to Israel, tourist destinations can recover from even severe acts of terrorism, as long as the terrorist acts are not repeated. However, when acts of terrorism—whether of high or low severity—occur at high frequency and regular intervals, tourism demand will constantly decrease, and eventually the destination’s tourism industry will come to a standstill.