The moderating role of informatization between country risks and international tourism: A cross-country panel analysis

Informatization plays an increasingly important role in the tourism industry, while its effectiveness in alleviating tourism risks remains to be verified. This research aims to explore the effects of country risks on the international tourism and the moderating role of informatization between the two. This study firstly measures country risks based on the ICRG database, quantifies international tourism by tourism revenue, tourism expenditure, and tourist arrival, and calculates informatization level from informatization facilities, informatization applications, and informatization skills. A dynamic SYS-GMM model is then adopted to verify the research hypotheses based on the panel data of 138 countries from 2000 to 2019. The research results show that the composite country risk, political risk, economic risk, and financial risk all show a negative impact on the international tourism indicators regardless of different time periods, regions, or income levels. However, the effects are more obvious before the global financial crisis in 2008 and regions and countries with lower income levels. In addition, informatization is found to positively mitigate the adverse impacts of country risks on international tourism, especially for economic and financial risks. The research findings indicate the risk hedge potential of informatization in the tourism industry, which provides a profound reference for destination risk management.