Real Exchange Rate, Political Risk and Tourist Arrival: an Evidence forIran

The tourism industry is very important in the world economic system. The tourism sector inIran is expanding and it's a good alternative in terms of sustainable income instead ofselling crude oil. There are many factors affecting tourism: Exchange rates, the Income oforigin countries, Inflation, Etc. This paper investigates the effects of real exchange rates andpolitical risk on tourist arrival in Iran over the period of ۱۹۹۰ - ۲۰۲۰. To achieve this aimautoregressive distributed lag (ARDL) has been used and the results show real exchange rateand political risk affected Iran’s tourism industry negatively. High exchange and inflation ratesare an attraction for tourists. This study aims to answer why in Iran this fact is not true.Therefore, the policymakers are advised to resolve political disputes that have increasedinstability in the Iranian economy.

Keywords:

Real Exchange Rate , Political Risk , Tourism Demand , ARDL.