Determinants of the Travel Demand Model for Canadian Tourists to the U.S.

Abstract

ABSTRACT The objective of this study is to identify the determinants of the travel demand and to assess their impacts on the number of international tourist arrivals from Canada to the U.S. Annual time data (1960-2002) of tourist arrivals, real per capita income, relative prices and real exchange rates were used throughout the study. The Dummy variables of 9-11, the Olympic Games, the Open Skies Agreement, the Gulf War, the Free Trade Agreement, the World Economic Recession and the Oil Crisis were used to measure the impacts of special incidents on the number of Canadian arrivals. Multiple regression analysis was used to analyze the data. The results showed that real per capita income, relative price, the Gulf War and the Oil Crisis were the determinants of the travel demand from Canada to the U.S.