Tourism's “Financial Dutch Disease”: Regional evidence on foreign exchange abundance and local household saving preferences

Batuhan Medetoğlu; Yusuf Bahadır Kavas; Arif Saldanlı; Fatih Günay

doi:10.31822/jomat.2026-11-2-323

Tourism's “Financial Dutch Disease”: Regional evidence on foreign exchange abundance and local household saving preferences

Abstract

This study aims to examine the impact of increases in tourism-related foreign exchange inflows on individuals' financial behaviour in Türkiye. While numerous studies have examined the Dutch Disease in the real sector, limited studies have examined its effects on household investment behaviour specifically in the service sector. This phenomenon, referred to as the “Financial Dutch Disease”, is analysed in this study to show the impact of tourism intensity on individuals' demand for foreign exchange deposit accounts (FX deposit accounts) for a sample of 81 provinces in Türkiye for the period 2015-2023. The findings indicate a strong positive relationship between tourism growth and the share of FX deposit accounts. According to the main model, a one-unit increase in the number of foreign tourists per capita increases the FX deposit account share of total deposits in a province by an average of 4.35 percent. Conducted heterogeneity analyses indicate that this effect is more pronounced in financially less developed regions. Dynamic analyses indicate that the effect carries over to the following year but diminishes over time. These results clearly demonstrate that tourism-related foreign exchange abundance has led locals to resort to currency substitution, creating a form of "Financial Dutch Disease." The study expands the Dutch Disease literature to include the financial consequences of tourism as a service sector and offers important implications for policymakers by highlighting the potential impact of tourism on regional financial stability.

Keywords

Financial Dutch Disease, Tourism Economics, Household Finance, Currency Substitution, Regional Economics

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Details

Primary Language

English

Subjects

Tourism Economics, Tourism (Other)

Journal Section

Research Article

Authors

Batuhan Medetoğlu
0000-0002-8400-1232
Türkiye

Yusuf Bahadır Kavas
Türkiye

Arif Saldanlı
0000-0001-9990-9510
Türkiye

Fatih Günay ^*
0000-0003-0892-514X
Türkiye

Publication Date

August 30, 2026

Submission Date

October 10, 2025

Acceptance Date

June 15, 2026

Published in Issue

Year 2026 Volume: 11 Number: 2

DOI

https://doi.org/10.31822/jomat.2026-11-2-323

IZ

https://izlik.org/JA23EK68TY

APA

Medetoğlu, B., Kavas, Y. B., Saldanlı, A., & Günay, F. (2026). Tourism’s “Financial Dutch Disease”: Regional evidence on foreign exchange abundance and local household saving preferences. Journal of Multidisciplinary Academic Tourism, 11(2), 323-337. https://doi.org/10.31822/jomat.2026-11-2-323

AMA

1.Medetoğlu B, Kavas YB, Saldanlı A, Günay F. Tourism’s “Financial Dutch Disease”: Regional evidence on foreign exchange abundance and local household saving preferences. Jomat. 2026;11(2):323-337. doi:10.31822/jomat.2026-11-2-323

Chicago

Medetoğlu, Batuhan, Yusuf Bahadır Kavas, Arif Saldanlı, and Fatih Günay. 2026. “Tourism’s ‘Financial Dutch Disease’: Regional Evidence on Foreign Exchange Abundance and Local Household Saving Preferences”. Journal of Multidisciplinary Academic Tourism 11 (2): 323-37. https://doi.org/10.31822/jomat.2026-11-2-323.

EndNote

Medetoğlu B, Kavas YB, Saldanlı A, Günay F (August 1, 2026) Tourism’s “Financial Dutch Disease”: Regional evidence on foreign exchange abundance and local household saving preferences. Journal of Multidisciplinary Academic Tourism 11 2 323–337.

IEEE

[1]B. Medetoğlu, Y. B. Kavas, A. Saldanlı, and F. Günay, “Tourism’s ‘Financial Dutch Disease’: Regional evidence on foreign exchange abundance and local household saving preferences”, Jomat, vol. 11, no. 2, pp. 323–337, Aug. 2026, doi: 10.31822/jomat.2026-11-2-323.

ISNAD

Medetoğlu, Batuhan - Kavas, Yusuf Bahadır - Saldanlı, Arif - Günay, Fatih. “Tourism’s ‘Financial Dutch Disease’: Regional Evidence on Foreign Exchange Abundance and Local Household Saving Preferences”. Journal of Multidisciplinary Academic Tourism 11/2 (August 1, 2026): 323-337. https://doi.org/10.31822/jomat.2026-11-2-323.

JAMA

1.Medetoğlu B, Kavas YB, Saldanlı A, Günay F. Tourism’s “Financial Dutch Disease”: Regional evidence on foreign exchange abundance and local household saving preferences. Jomat. 2026;11:323–337.

MLA

Medetoğlu, Batuhan, et al. “Tourism’s ‘Financial Dutch Disease’: Regional Evidence on Foreign Exchange Abundance and Local Household Saving Preferences”. Journal of Multidisciplinary Academic Tourism, vol. 11, no. 2, Aug. 2026, pp. 323-37, doi:10.31822/jomat.2026-11-2-323.

Vancouver

1.Batuhan Medetoğlu, Yusuf Bahadır Kavas, Arif Saldanlı, Fatih Günay. Tourism’s “Financial Dutch Disease”: Regional evidence on foreign exchange abundance and local household saving preferences. Jomat. 2026 Aug. 1;11(2):323-37. doi:10.31822/jomat.2026-11-2-323

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Tourism's “Financial Dutch Disease”: Regional evidence on foreign exchange abundance and local household saving preferences

Abstract

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References

Details

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Acceptance Date

Published in Issue

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