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This article aims at examining the relationship between economic policy uncertainty and tourism activities in Portugal, Ireland, Italy, Greece, and Spain using a three-dimensional wavelet analysis. Empirical results display that the relationships among the variables evolve through time and frequencies. The study finding reveals strong evidence of the relationships between these variables in terms of time domains. From the perspective of frequency domains, significant wavelet coherence and strong lead-lag relationships change over time are displayed in this study, indicating low to high frequency cycles over the whole sample period. [ABSTRACT FROM AUTHOR]

This article aims to examine the link between European economic policy uncertainty (EPU) and tourism activities in Portugal, Ireland, Italy, Greece, and Spain using wavelet transform context structures. This innovative technique allows the decomposition of time-series at different time frequencies. In this work, we used continuous wavelets, wavelet coherency, and wavelet phase difference based on Granger causality analysis to investigate the relationship between European EPU and tourism using the annual data from 1995 to 2015. The results indicate that there is a unidirectional causal influence of European EPU on international tourism receipts (ITR) in the short run and a bidirectional causal influence of European EPU on ITR in European countries in the long run. Accordingly, it can be recommended that the government needs to increase and promote tourism demand and to further provide and nurture the expansion of tourism supply. [ABSTRACT FROM AUTHOR]