Other studies concluded that while some countries experience a negative indirect effect, terrorist attacks increase tourism demand in other neighboring countries that are known for their low or moderate risk level (^{Saha&Yap,2014}).

How terrorism affects the tourism industry?

Results show that the attacks caused a shock to tourists' utility, and a change in the image profile of destinations. Moreover, it was found that while some destinations experienced a strongly negative impact on their image and attractiveness, others were upgraded as a consequence of terror events.

Why terrorism is bad for tourism?

The risk perception of terrorism may cause travel anxiety towards a destination. ... Terrorists use the tourist system to attract global media attention through spectacular attacks on tourists or the tourist infrastructure. As a result, tourists avoid these destinations, which again impacts the travel and tourism industry.