The Good Tourist, the Bad Refugee and the Ugly German: Xenophobic Activities and Tourism

44 Pages Posted: 29 Sep 2018 Last revised: 6 Feb 2020

See all articles by Marek Endrich

Marek Endrich

Vrije Universiteit Brussel (VUB)

Stephan Michel

University of Hamburg - Institute of Law and Economics

Date Written: February 5, 2020

Abstract

This article deals with the economic effects of xenophobic incidents. To analyze these effects, we focus on one important industry, namely tourism. Combining a novel, district-level data set on tourism in Germany with data on xenophobic activities, we find that xenophobic demonstrations lead to a decline in tourism numbers. An analysis of a sample of German newspapers shows that the effect is driven by the media attention towards the incidents. Looking at Dresden as a case study with the Synthetic Control Method provides support for our results. The findings presented here highlight the direct economic costs of xenophobia and strengthen the political case to fight political extremism.

Keywords: Xenophobic activities, refugees, tourism, district-level data

JEL Classification: F22, L83

Suggested Citation

Endrich, Marek and Michel, Stephan, The Good Tourist, the Bad Refugee and the Ugly German: Xenophobic Activities and Tourism (February 5, 2020). Available at SSRN: https://ssrn.com/abstract=3244464 or http://dx.doi.org/10.2139/ssrn.3244464

Marek Endrich

Vrije Universiteit Brussel (VUB) ( email )

Pleinlaan 2
http://www.vub.ac.be/
Brussels, 1050
Belgium

Stephan Michel (Contact Author)

University of Hamburg - Institute of Law and Economics ( email )

Johnsallee 35
Hamburg, 20148
Germany

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