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Implications of Oil Price Fluctuations for Tourism Receipts: The Case of Oil Exporting Countries

Author

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  • Siamand Hesami

    (Faculty of Business and Economics, Eastern Mediterranean University, Gazimağusa 99450, Turkey)

  • Bezhan Rustamov

    (Department of Banking and Finance, Faculty of Business and Economics, Rauf Denktas University, Lefkosa 139149, Turkey)

  • Husam Rjoub

    (Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Haspolat 99010, Turkey)

  • Wing-Keung Wong

    (Department of Finance, Fintech Center, and Big Data Research Center Asia University, Taichung 41354, Taiwan
    Department of Medical Research, China Medical University Hospital, Taichung 40402, Taiwan
    Department of Economics and Finance, The Hang Seng University of Hong Kong, Hong Kong 999077, China)

Abstract

This study investigates the influence of oil prices on tourism income in countries that heavily relied on crude oil exports from 2000 to 2017. We found that oil prices and tourism receipts are cointegrated, revealing the existence of their long-run equilibrium relationship. Another significant finding to emerge from this study is the presence of a unidirectional Granger causality that runs from the oil prices to the tourism receipts. The results of the current study are of particular importance for policymakers who operate in oil-exporting countries. The implications provide a systematic understanding of the effect of oil price fluctuations on tourism income which can benefit investors greatly by enabling them to hedge against oil price fluctuations and plan for their tourism business and policymakers by enabling them to set policies to stabilize oil price fluctuations and plan for tourism development, correspondingly.

Suggested Citation

  • Siamand Hesami & Bezhan Rustamov & Husam Rjoub & Wing-Keung Wong, 2020. "Implications of Oil Price Fluctuations for Tourism Receipts: The Case of Oil Exporting Countries," Energies, MDPI, vol. 13(17), pages 1-17, August.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:17:p:4349-:d:402751
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