Tourism's exposure to global oil price

Abstract

Tourism is an increasingly important economic activity globally. At the same time, it is extremely dependent on oil, not only for tourists’ mobility but also for other core elements of tourism such as recreational activities at the destination. Forecasts for tourism growth are generally optimistic, but they fail to take into account potential changes in global oil price and effects on arrival numbers. It is timely to consider how tourism might change given incremental or rapid increases in oil price.