City tourism is a growing segment of world tourism, with European capitals performing especially well in the last decade. However, a recurring threat to this success is the unexpected occurrence of terrorism events, affecting both tourists' behaviour and destination image. This paper analyses the relationship between tourists' perceived risk from terrorism and the image of the destination, and the effect on behavioural intentions, taking into account the moderating role of the type of city destination in regards to the impact of terrorist attacks. The theoretical model is assessed utilising a structural equations approach on a sample of potential tourists focusing on European capitals. The sample is divided into two groups of destinations: cities that have suffered major terrorist attacks and those that have not. The results show that the destination moderates the causal relationship. The results are interesting in terms of evaluating the policies of counter-terrorism and destination image restoration at city tourism destinations. •Terrorism risk perception has a negative and significant effect on city image and behavioural intentions (Structural model)•Terrorism-hit is relevant moderator of the influence of terrorism risk perception on city image and visit intention (Moderating effect)•Special attention needs to be paid in tourism marketing and communication by tourist destinations managements in order to mitigate the terrorism risk perception by tourists