Tourism Demand and Exchange Rate Shocks: An Empirical Analysis For Turkish Tourism Sector

Abstract

This study aims to analyze the relationship between demand and exchange rate shocks for Turkish tourism sector theoretically and empirically. In this context, the standard error of the number of tourist and the standard error of exchange rate was used as an indicator of demand shock and exchange rate shock for January 1996 and September 2012, respectively. In light of the findings, a unidirectional causality has been found from tourism demand shock to exchange rate shock. Moreover, it is reached to conclusion that there is a negative long run relationship between tourism demand shock and exchange rate shock.