Exchange Rate Volatility and Tourism Stock Prices: Evidence from Egypt
Journal: Journal of Association of Arab Universities for Tourism and Hospitality
Year: 2019

Tourism is a key stimulator of economic growth and foreign currency in Egypt. As an export sector, it could affect and be affected by changes in exchange rate. This paper investigates the dynamic relationship between exchange rate and tourism stock prices and examines the effect of exchange rate volatility on tourism stock prices in the Egyptian Exchange (EGX). Exchange rate is proxied by the USD/EGP official values. Granger causality test and ARCH/GARCH models are employed. Results provide an e