DOI: 10.36347/sjebm.2017.v04i10.008

Pages: 713-718

Terrorism, and its attendant effects, has become a global concern with both developed and developing countries experiencing an exponential increment in terrorist-related incidents. Due to the strength of the industry, the nexus between tourism and terrorism is undeniable. Tourism is a major source of revenue generation and, therefore, an integral part of economic development; a relationship that rewards a nation when positive conditions such as a strong global economy exists. Terrorism is a threat to this relationship. The effects of terrorism on a nation’s economy are vast and include loss of jobs, reduced income, rise in crime and a myriad of other socio-economic tribulations. This paper analyses empirical evidence on the effects of terrorist attacks on tourism. While it is not realistically possible to measure the total economic impact of terrorism, studies have shown that terrorism attacks contribute to a decrease of 10% in travel and tourism demand worldwide. Consequently, this translates to 8.8 million people losing their jobs in the industry. This is more so because terrorists mostly attack cities and other populated areas thus affecting tourism industries which challenges travelers and tourists’ security beliefs. When people travel from their place to a different place, they do not want to be exposed to personal hazards; so safety is a paramount concern of most travelers. In Kenya, terrorism has a direct impact on tourism mostly because terrorists target tourist destinations in an attempt to attract the world’s attention. It follows that Kenya and many other developing countries are dependent on tourism since it forms a substantial part of their GDP and anything that impacts on tourism will have a profound impact on their economies. However, due to the political issues that often crop up in such countries, there is often conflict that makes them more susceptible to terrorist attacks.