Publication Details
Abstract
Outbound tourism, defined as the travel of Iraqi citizens abroad for purposes such as leisure, medical treatment, and education, has emerged as a structural challenge to Iraq’s macroeconomic stability. This challenge is compounded by the country’s heavy reliance on oil revenues and the lack of diversification within its productive sectors. Recent trends reveal a notable increase in demand for outbound leisure and medical tourism, resulting in a significant outflow of foreign currency from the national economy. Tourism, by its nature, is typically regarded as a key sector for attracting foreign currency rather than depleting it; thus, this reverse flow negatively affects Iraq’s economic resilience.
This study investigates the primary drivers behind the surge in outbound tourism demand. The findings indicate that one of the most influential factors is the official exchange rate offered to travelers, which is considerably more favorable than the parallel market's rate which sometimes reach a gap in value equivalent to the price of a plane ticket. Additionally, the inadequacy of domestic tourism infrastructure and the underdeveloped healthcare services further incentivize citizens to travel abroad. To mitigate this trend and its adverse economic implications, the study recommends enhancing investment in Iraq’s tourism and healthcare sectors, aiming to provide competitive domestic alternatives and reduce reliance on outbound travel.