Asymmetries in tourism demand

Abstract

ABSTRACT This research investigates the impact of key macroeconomic determinants on tourist demand in Greece, focusing on destination competitiveness, income levels, real interest rates, real exchange rate volatility (ERV), trade openness, technology infrastructure, human capital, and travel costs. By introducing a novel index, the study comprehensively evaluates these influences on Greece’s tourist influx over the long term. It also explores the asymmetric long-term impacts of ERV and tourists’ income, highlighting the importance of the direction and size of these effects. The findings are essential for developing effective long-term economic policies to enhance tourism in economies like Greece, where tourism significantly contributes to economic development.