Africa’s outbound tourism: An Almost Ideal Demand System perspective

Abstract

While African outbound tourism represents 3% of international tourism, the continent is experiencing high economic growth rates, contributing to a fast-growing middle-class and a large potential market for international travel. This article analyses African outbound travel to all other continents from an Almost Ideal Demand System (AIDS) perspective. Both static and dynamic AIDS are estimated and the resulting elasticities indicate that: (i) African tourism to all continents is a normal good, although Africa and Oceania can be considered luxury destinations; (ii) Asia and North America are the most price elastic destinations, and price increases in these continents will lead to substitution to Europe and Africa; (iii) there is persistence in African arrivals to North and South America.