Tourism Stocks in Times of Crisis: An Econometric Investigation of Unexpected Nonmacroeconomic Factors

Anastasios Zopiatis*, Christos S. Savva, Neophytos Lambertides, Michael McAleer

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

40 Citations (Scopus)


The relationship between the tourism industry and unexpected nonmacro incidents has received limited academic coverage. As a result, the quantifiable impact of such events on tourism-specific stock values, both in terms of returns and volatility, remains grossly underexamined. Motivated by the reasoning that the well-established features inherent to the tourism industry may trigger a different pattern of stock price movement compared with other industries, and by using econometric methodology, this article investigates the reaction of five hospitality/tourism stock indices to 150 incidents, depicting major Acts of Terrorism, natural catastrophes, and War conflicts that have taken place since the year 2000. Empirical findings underscore the effect of such incidents on stock indices, with distinctive differences among the types and specificities of each event under investigation. This article contributes to the extant literature and enhances our conceptual capital pertaining to the tourism industry’s current financial practices related to stock performance and behavior.

Original languageEnglish
Pages (from-to)459-479
Number of pages21
JournalJournal of Travel Research
Issue number3
Publication statusPublished - 13 Feb 2018

Bibliographical note

Funding Information:
We would like to sincerely thank all three reviewers and the Editor of the Journal of Travel Research for their very helpful constructive comments and feedback. The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: For financial support, the fourth author Michael McAleer acknowledges the Australian Research Council and the National Science Council, Ministry of Science and Technology (MOST), Taiwan.

Publisher Copyright:
© The Author(s) 2018.


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