The effects of business and finance conditions on the tourism stock markets: An empirical investigation from Turkey

Abstract

This study investigates interactions between the stock performance of tourism firms and business and finance conditions in a vast tourist destination country, Turkey. Results of the study confirm the long-term significant effects of the business and finance environment on the stock performance of Turkish tourism firms using a stock valuation model. Furthermore, the study shows that the tourism stock markets are highly sensitive to aggregate macroeconomic and industrial activity, financial markets, tourism climate, exchange rate markets and country's inflation levels since these aggregates exert highly elastic effects on the tourism stock prices.