Global financial crisis and stationarity of tourist arrivals: evidence from Mauritius

Abstract

The purpose of this research note is to examine whether shocks such as the recent global financial crisis of 2007–2009 had a permanent or transitory effect on tourist arrivals in a developing country – Mauritius. Principally premised on a new nonlinear unit root test, the results show that tourist arrivals are stationary. The implication of these findings is that the shocks inclusive of those induced by the latest credit crunch had a temporary impact on tourism markets in Mauritius.

Keywords:

• global financial crisis
• tourist arrivals
• stationarity
• Mauritius

Notes

1. For the importance of the recent economic crisis for tourism, see Hall (2010), Wang (2009) and Eugenio-Martin and Campos-Soria (2014)

2. Australia, Austria, Belgium, France, Germany, India, Italy, Malagasy Republic, China, Reunion, South Africa, Seychelles, Spain, Switzerland, UK and USA

3. The details can be found in Solarin and Shahbaz (2013), Solarin (2014a, 2014b) and Solarin, Ahmed, and Dahalan (2014)