Impact of visa restrictions on international tourist arrivals
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The aim of this research is to assess the impact of visa restrictions on international tourist arrivals for the period 2017-2019. Despite the relevance of the topic, there are surprisingly few studies in the economic literature on the impact of visa restriction as a barrier to the movement of tourists, economic growth and employment, and the development of the tourism sector. The study examines the effect on tourism of the different types of visa (traditional visa, electronic visa and visa on arrival) and of government decision-making in this regard. The empirical analysis uses a gravity model to estimate bilateral tourism movements based on OLS and PPML estimations in three different models: the first model controlled for the fixed effects of origin, destination and year; the second for multilateral resistance terms, and the third for multilateral resistance terms with fixed effects. The results showed that traditional visas have the strongest effect on tourism (21.2% reduction in tourist arrivals), while the visa on arrival method has the least negative effects (tourism flow reduction of 10.7% OLS and 13.1% PPML). The findings indicate that governments should assess the costs of visa policy and requirements, including their impact on tourism, and consider the benefits of a more flexible approach in this area.
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