Abstract:
This study extends the literature with respect to economic policy uncertainty measures and tourism flows to Croatia through the use of the Toda and Yamamoto modeling approach with a Fourier approximation to capture structural breaks. The results show that domestic economic policy uncertainty does not have a significant impact on tourist overnight stays. However, an increase in European economic policy uncertainty reduces total and domestic tourist overnight stays. An increase in COVID-19 cases has a negative and significant impact on total, domestic, and foreign tourist overnight stays, and contributes to increases in both Croatian and European economic policy uncertainty. © 2022 Taylor & Francis Group, LLC.