The Exchange Regimes’ Effect on International Tourism Flow in Selected Islamic Countries (Gravity Approach)

Document Type : Research Article


1 Master of Economics, Faculty of Economics and Business Administration, Tabriz University

2 Faculty Member of Marine Sciences, Chabahar University


The tourism industry, as one of the world’s most profitable industries, can play an important role in the economic growth of countries. Tourism includes services that have a great impact on economic and social activities. In this regard, despite the presence of foreign exchange regimes as one of the factors affecting the tourism flow, few studies have been conducted on the effect of foreign exchange regimes on tourism flow. Recent developments in classifying the foreign exchange regimes have stimulated the study of the foreign exchange regimes effects on international tourism flow. This study has used gravity and panel data to estimate the tourists’ number from the entire world to selected Islamic countries (14 countries) including Bahrain, Iran, Iraq, Egypt, Turkey, Saudi Arabia, UAE, Kuwait, Qatar, Yemen, Syria, Lebanon, Jordan, and Oman during the 1993–1993 period. Results show that the fixed exchange regime has a positive significant effect on the tourism trend, and maintaining the exchange rate stability to attract international tourists is very important. Also, trade, GDP, distance, population, having a common language, and colonialism have a positive effect on the tourism flow, and the effective exchange rate variable, nominal exchange rate, and the presence of a common commercial agreement have a negative effect on the tourism flow. All coefficients are statistically significant except for the colloquial variables and having a common commercial agreement.


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