Does Terrorism have a Limited Impact on International Investments in Tourism? Some Theoretical Considerations

Maja Nikšić Radić; Matea Barišić

doi:10.6092/issn.2036-5195/7556

Authors

Maja Nikšić Radić University of Rijeka

PhD, she is an assistant professor of the Faculty of Tourism and Hospitality Management in Opatija, the University of Rijeka, Croatia. She was born April 29, 1980 in Rijeka. She holds a PhD in international economics, which is her main area of interest. Over the years, she has been professionally improving in fields like: tourism FDI, FDI and economic growth, FDI and sustainable development, terrorism and more. She has published several scientific articles and participated in numerous scientific conferences.She is a head of a scientific project Impact of terrorism on foreign direct investment in tourism.
Matea Barišić University of Rijeka

In 2012 she enrolled undergraduate studies at the Faculty of Tourism Management and Tourism in Opatija, during which she completed one semester in Turkey as part of student mobility at Akdeniz University. During this stay, interest in the security situation in the country and its direct impact on tourism is gained. Undergraduate study ends with final work on the topic of Foreign direct investment in tourism in the circumstances of global uncertainty and the emergence of terrorism. She graduated in 2018 with the topic Significance of safety in the position of Croatia as a tourist destination.

DOI:

https://doi.org/10.6092/issn.2036-5195/7556

Keywords:

FDI in tourism, Terrorism, Globalization, Safety

Abstract

Foreign direct investment (FDI) in tourism is a catalyst for a number of positive changes within the economy of the host country and reflect positively on economic growth. Therefore, it is in the interest of many countries to attract foreign investors, which is especially prevalent in developing countries. At the same time, the 21st century is marked by major changes in terms of safety, influencing the appearance of the contemporary international terrorism. Terrorism has many direct and indirect effects and is influenced by mass media, reflects on changes in behaviour patterns of modern tourists, including the movement of tourist flows as well as flows of FDI into tourism. Tourism, FDI and security are three very interrelated concepts. The purpose of this paper is to explore to what extent uncertainty, primarily in the form of terrorism, affects FDI in tourism. It should also be borne in mind that the picture of the risky countries in the conditions of global uncertainty changes very rapidly and in such circumstances each destination may potentially become risky. Existing research on terrorism and foreign direct investment in tourism are scarce and give different results.

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Does Terrorism have a Limited Impact on International Investments in Tourism? Some Theoretical Considerations

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