The effect of economic policy uncertainty on BRIC tourism

This study examines the effects of economic policy uncertainty (EPU) and tourism in Brazil, Russia, India and China (BRIC). It used a three-dimensional wavelet technique based on Granger causality analysis to investigate the relationship between EPU and tourism activities using the annual data between 1995 and 2018. The results show that the uncertainty about its economic policies will not only affect macroeconomic variables but also tourism. The EPU has short-run implications, as well as short-run, mid-run and long-run effects on international tourist arrivals. It can be recommended that the national security of the government and peace protocols be maintained by the government. Otherwise, the fall in tourism demand could impede the economic growth in the BRIC countries in the long-run.