Tourism market in turbulent times: evidence of asymmetric connectedness

Tourism markets have faced significant challenges due to global geopolitical and economic events. This study aims to investigate the asymmetric connectedness across regional and country-level tourism markets. By employing a time–frequency-domain analysis informed by the efficient market hypothesis and modern portfolio theory, we construct connectedness networks for both regional and country-level markets. Our findings reveal a strong asymmetric connectedness in these markets, with negative return spillovers being particularly prominent during events such as the 9/11 attacks, London and Madrid bombings, the 2007–2009 global financial crisis, European debt crisis, Syrian and Libyan civil wars, the emergence of ISIS, and the COVID-19 outbreak. These insights offer valuable implications for stakeholders in regional and country-level tourism markets and suggest effective strategies for recovery and resilience.