Type of Submission

Refereed Article


The last two decades witnessed numerous international terrorism incidents, some of which were specifically aimed at tourists or were at least intended to hamper visitor inflows. However, there is no empirical evidence explaining and measuring the effect of terrorist attacks on the market value of tourism enterprises. This study looked at the effect of the recent terrorist bombings in Bali (Indonesia), Istanbul (Turkey), and Madrid (Spain) on the market values of publicly traded hospitality and tourism firms in these countries. The findings indicate that, overall, markets reacted negatively to these tragic events but reaction in Turkey was milder than in Spain.