Impact of oil price on tourism demand: Comparison of OECD and Middle Eastern countries

Oil as a raw material in the world's energy supply is of great importance,The dependence of the countries of the Middle East and advanced industrial countries on this matter and the impact of these countries' economies on oil price volatility reveal the importance of the impact of these developments.The main objective of this paper is to investigate the effect of oil price volatility on tourism demand in the years 2014-2000. The patterns studied in this study are estimated by using panel data method for OECD and Middle East countries using autoregressive conditional non-conformal variance. The variables included in the gross domestic product model, realistic exchange rate, oil price, trade liberalization index and population, per capita expenditure, and consumer price index. The results of the estimates for different countries indicate that oil prices are one of the influential variables affecting incoming tourism income, which has a significant and significant effect in OECD and Middle Eastern countries. And other model variables indirectly affect incoming tourism income.