The Determinants of Norwegians' Summer Tourism Expenditure: Foreign and Domestic Trips

Abstract

Statistical modelling of the variation in micro-level tourism expenditure is an ever-expanding topic of study. The present paper adds to this research by examining how and why foreign and domestic summer vacation trips incur cross-sectional differences in total trip expenditure for Norwegian households in the period 2009 to 2012. The paper also highlights how a number of other regressors explain variation in such expenditure. The main finding is that, in gross or unadjusted terms, Norwegian households spend more than three times as much on foreign summer trips as they do on domestic trips (that is, 225% more). In net or ceteris paribus terms, the analogue difference is 48%. Two important, but only partial explanations for the gross difference in total trip expenditure between foreign and domestic trips are choice of type of lodging and choice of transportation mode. Length of stay, purpose of trip, advance booking, frequency of vacation trips, age, income and gender all affect total trip expenditure. Whether the trip is foreign or domestic moderates the effects of some of the other regressors on total trip expenditure. Implications for future research are offered.