Investigating the Impact of Country Risk and Ecological Footprint on Tourism Demand in Iran

Nowadays, as the most diverse, the tourism industry is the most vital source of income and job opportunities for many countries in the world. Iran has the potential to attract tourists due to its rich historical, geographical, cultural, and natural attractions. Iran has the potential to attract tourists due to its rich historical, geographical, cultural, and natural attractions. Knowing the factors affecting the tourism industry is critical; however, identifying tourism obstacles can be more vital. In today's world, various risks affect the economy of countries. On the other hand, climate change has become the most crucial concern of humankind in this century. This paper uses the quantile regression method to investigate the impact of country risk, including economic risk, political risk, financial risk, and ecological footprint, on tourism demand in Iran from 1989 to 2020. The results of this research illustrate that country risk and its components have a negative and significant impact on tourism demand in Iran; this can demonstrate the importance of risk and uncertainty in Iran's economy. Moreover, the ecological footprint as a proxy of climate change negatively and significantly affects tourism demand in Iran. According to the research results, it is suggested that policymakers adjust the policies to reduce the country's risk and increase the confidence of foreign tourists to travel to Iran. On the other hand, paying attention to the climate change crisis should become more critical for the government and society; otherwise, this crisis can negatively affect tourist attractions in Iran.