Abstract
PurposeThis study examines whether international tourism demand in the Visegrad countries is influenced by countries' risk rating on environmental, social and governance (ESG) factors, as non-economic factors relating to ESG risks have been ignored by previous researches on determinants of international tourism demand.Design/methodology/approachThe study investigates panel data for the Visegrad countries comprising the Czech Republic, Hungary, Poland and Slovakia over the period 1995-2019. Recently developed techniques of augmented mean group (AMG) and common correlated effects mean group (CCEMG) estimators are employed so as to take care of cross-sectional dependence, nonstationary residuals and possible heterogeneous slope coefficients.FindingsThe regression estimates suggest that besides economic factors, the perception of international tourists regarding ESG risk is another important determinant of international tourism demand in the Visegrad countries. The study also established that income levels in the tourists' originating countries are the most critical determinant of international tourism demand to the Visegrad countries.Originality/valueThe research outcomes of the study include the need for the Visegrad countries to direct policies towards further mitigating their ESG risks in order to improve future international tourism demand in the area. They also need to ensure exchange rate stability to prevent volatility and sudden spikes in the relative price of tourism in their countries.