The Impact of Riots on Hotel Revenue Performance

By using a sample of 10 European cities over the period of the first quarter 1996 to the fourth quarter 2005, this thesis explores the impact of riots on hotel revenue performance. The connection between destination image and tourism industry is illustrated to help explain the results generated with a number of variables about riots. The research used fixed effect models with cluster standard errors to control for autocorrelation and heteroskedasticity in panel data. It is found that riots as a whole do not have a significant influence on hotel revenues. But when further categorizing riots by their different features in terms of type, duration and location, a significant negative impact can be observed in riots triggered by disruptive states acts and riots recorded with specific locations. Limitations and recommendations for further research are also provided.