Impact Of Economic Crisis On The Tourism Industry In Romania. An Econometric Analysis Of Overnights Stays

Tourism is one of the largest industries in the global economy and has been both a key driver and a beneficiary of the prolonged period of economic growth seen in recent years. It also has significant social and cultural benefits because of its potential to promote understanding and international relationships. These socioeconomic dimensions make tourism a vital component of globalization. But the many events taking place at global level call into question how the tourism industry is affected. Natural phenomena (earthquakes, hurricanes, volcanic eruptions), epidemics, terrorist acts, political instability drastically affect the tourism industry and hence national economies. The intensity of business organizations is reflected in the national economy and hence overall performance. The tourism industry has been affected by other crises in the previous period but the current crisis (whose starting point can be considered the period September-October 2008) is characterized by some specific aspects that differentiate it from other crises. Its impact, based on real data, are analised in this article. Despite the current difficulties, the Tourism sector remains a critical economic sector worldwide and one that provides significant potential for economic growth and development internationally. A growing national Tourism sector contributes to raises national income, employment, and can improve a country’s balance of payments. Using statistical and data and econometric models of overnights stays and tourists accommodation capacity in function is diagnosed the current status of tourism industry from Romania. This paper examines the impact of crisis events on the demand for tourism overnights in order to establish a better understanding of changes and trends in tourism firms.