HOW DOES THE STATUS OF UNESCO WORLD HERITAGE SITES AFFECT TOURISM?

Abstract

We analyse the impact of World Heritage Site (WHS) inscriptions on tourist inflows using up-to-date panel data and fixed-effects models that address potential inaccuracies from prior work. The designation of WHS is granted to cultural and natural sites that are considered to possess great universal value to humanity. By inscribing WHSs, countries pledge to protect and preserve these sites. Results suggest that introducing a new WHS inscription in a country boosts international tourist arrivals in the first five years by about 5%, rendering it an advantageous strategy to gain popularity as travel destinations. This positive effect, however, diminishes as time passes and as the stock of WHSs within a country grows. We find no influence of WHSs on tourism receipts nor on average expenditure per tourist, which challenges the notion of WHSs contributing economic returns to a country. Countries should employ other measures in order to enhance their tourism industry.