Determinants Of Tourism Demand Research Articles

Determinants of Tourism Demand in Malaysia: A Study of Chinese and Indian Tourist from Macroeconomics Perspective

Determinants of Tourism Demand in Malaysia: A Study of Chinese and Indian Tourist from Macroeconomics Perspective

Determinants of Tourism Demand in Context of Environmental Quality

Tourism is a sector that contributes to the economic development of both developed and developing countries, and with this structure, it contains the environmental, social, and economic dimensions of sustainable development. This study aims to estimate the effects of environmental quality and other determinants on international tourism demand. Within the scope of the 2008–2017 period, the tourism demand from 27 different countries to the top 10 countries that attract the most tourists worldwide was examined using the multidimensional panel gravity model. The effects of environmental, economic, and non-economic indicators on tourism demand were investigated using Poisson pseudo-maximum likelihood (PPML) estimation methods. The findings showed that the low environmental quality significantly reduces tourism demand. In addition, tourist income, common language, and common border had positive effects on tourism demand, while distance, relative price, and visa restrictions had negative effects. This study offers recommendations for policymakers and other stakeholders and contributes to the literature on tourism economics and the environment.

Determinants of Tourism Demand in Spain: A European Perspective from 2000–2020

This empirical study evaluates European tourism demand in Spain from 2000 to 2020. To test the hypotheses, we have modelled tourism demand, which is measured in terms of travellers arriving in Spain. An Error Correction Model adapted to a panel structure has been utilised to work within a time series context and differentiate up to 14 European countries of origin. The findings denote that over the short and the long term, gross domestic product (GDP) and the number of beds positively relate to tourism demand. Still, the stock market indices are not significant in both terms. The price index, trade flows, and length of stay differ in the short and the long term. Results of this study call the attention of policy makers and the private sector to encourage an increase in the supply of available beds to ensure post-pandemic sustainability.

Does corruption undermine tourism development in Africa?

ABSTRACT While the determinants of tourism demand have been extensively investigated, the impact of corruption on tourism development is less documented. To fill the gap in the literature, this study uses various indicators of tourism development and corruption measurement to examine the influence of corruption on tourism development in 30 African countries over the period 1996–2020. The empirical evidence is based on the fixed effect and panel corrected standard errors (PCSE) estimation techniques. The results unveil that the impact of corruption on tourism development is negative and statistically significant, both for domestic and international tourists. It indicates as corruption worsens, tourism-related investments and tourism destinations are negatively affected. These results support the sand-in-the-wheel hypothesis. Additionally, macroeconomic indicators like GDP growth, foreign direct investment and infrastructural development are found to be ideal for promoting the tourism sector. However, the magnitude of the impact of the variables varies across various specifications, particularly for the sub-Saharan sample group. Based on the results, policy implications are suggested from the study. The results recommended that institutional reforms and promotion of good governances are critical in order to maximize the benefits of tourism sector.

The role of culture as a determinant of tourism demand: evidence from European cities

PurposeThe purpose of this paper is to examine the impact of various cultural amenities on tourism demand in 168 European cities.Design/methodology/approachUsing data from the European Commission’s Culture and Creative Cities Monitor 2017, a series of regressions are estimated to examine the impact of various cultural amenities on tourism demand while also controlling for other factors that may impact on tourism demand. Diagnostic tests are also conducted to check the robustness of the results.FindingsThe results reveal that cultural amenities in the form of sights, landmarks, museums, concerts and shows have a positive impact on tourism demand. By pinpointing the cultural amenities that are important for increasing tourism demand, the findings aid stakeholders in the tourism industry as they develop post-pandemic recovery plans.Originality/valueThis paper identifies two key aspects of the cultural tourism literature that require deeper investigation and aims to address these aspects. Firstly, while many studies focus on a specific or narrow range of cultural amenities, this study includes a series of measures to capture a range of cultural amenities. Secondly, while many studies are narrow in geographical scope, this paper includes data on 168 European cities across 30 countries.

Some considerations about tourist arrivals and the COVID-19 pandemic – evidence from Slovenia and Croatia

In late 2019 and early 2020, a sudden but not unexpected external shock occurred in the tourism industry. This study presents an explorative analysis of the literature review discussing a predicted exogenous shock in tourism caused by the appearance of viruses. Furthermore, the vector autoregressive (V.A.R.) models and panel econometrics is used to analyse and model the impact of the COVID-19 pandemics on tourist arrivals in Slovenia and Croatia. Applied analysis is used to test tourism artefacts in the short term on daily data for 2020. The results of econometric modelling and data plotting confirm significant volatilities in the analysed time-series and their peculiar response to the influence of the COVID-19 pandemic on tourist arrivals. Therefore, innovative tourism policy and management should not expect pre-pandemic values and demand; moreover, tourist expectations will change drastically in a calamitous decade, while several other determinants, not only COVID-19, will influence tourist arrivals. The study is novel in two respects. First, the study adds value to empirical research on the determinants of tourism demand. Moreover, the study can be considered a starting point for further short-, medium- and long-term econometric analyses of sudden shocks affecting tourism demand and government decisions affecting tourism supply.

The determinants of demand for tourism in Turkey: Does terror-threat matter? A Markov Regime Switching-VAR approach

Abstract This paper investigates the impacts of potential determinants of demand for tourism in Turkey through Markov Regime Switching-Vector Auto Regression (MS-VAR) estimations from 1999 to 2017 on monthly data. The determinants are income level, exchange rates and the threat of terror incidences. The terror variable, following the Global Terrorism Index (GTI) 2017 report, is calculated for Turkey by the author. This research has conducted two separate MS-VAR models to observe the relevant parameters’ signs of the demand for tourism function. Both MS-VAR models revealed that income level and exchange rates have positive influences on tourism while the terror threat has a negative impact on tourism in Turkey. Terror adversely affects the demand for tourism in the short-term in which terror has occurred in the nearest past (i.e., a month ago). The MS-VAR models also yield that a similar negative impact of terror on tourism activities does not appear over the longer periods.

Beyond income: US households’ financial position perceptions and their willingness to consume tourism

ABSTRACT People’s tourism demand decisions can be affected by perceived shifts in their finances. This study investigates how perceptions of financial positions can affect people’s decisions to consume tourism, using US households as a study case. The literature has given a prominent role to income as a determinant of tourism demand. However, the effect of income on tourism demand may be mitigated by people’s views about their finances. The study contributes to the literature, among others, by considering the possibility of nonlinear effects in the connection between households’ net financial position and their tourism demand. The methodology includes time-series data decomposition, stationarity, cointegration, and an application of the Limited Information Maximum Likelihood regression method. The results show that financial conditions matter for tourism demand and that tourists are heterogenous consumers that do not automatically react to stimuli such as income. The findings may help regional policymakers manage their destinations more effectively.

What Makes Vietnam a Preferred Tourism Destination? An Empirical Analysis

Following the end of the 20-year war against the US and its allies in 1975, Vietnam gradually opened its doors in terms of market-oriented trade reforms in the late 1980s. The Vietnamese tourism sector simultaneously started to grow and, during the last decade, has shown rapid expansion with major contributors being countries who fought against Vietnam. However, very little scientific research has been published in relation to inbound tourism in Vietnam. This study aims to fill this gap by identifying the factors that attract tourists to Vietnam and analyzing to what extent the improved relationship with the West has impacted on its tourism sector. Our results indicate that the level of income of the travelers, the exchange rate of the country of origin, word of mouth from travelers, the relative price differential between the country of origin and Vietnam, and the normalization of relationship between Vietnam and the country of origin are the major determinants of demand for tourism. One of the policy recommendations from this study is that, to increase inbound tourism, the Vietnamese government should introduce policies that would reduce the local cost of tourism in Vietnam.

Does Culture Affect Tourism Demand? A Global Perspective

Tourism studies commonly focus on the determinants of tourism demand. While most examine factors such as economic determinants, research on the effect of culture on tourism demand remains underdeveloped. This study uses a Bayesian two-stage median regression method to eliminate the potential collinearity between cultural and travel distance and to estimate the impact of cultural distance more appropriately. The results show that while there is a negative relationship between cultural distance and tourism demand, tourism demand is less sensitive to change in cultural distance; the popularity of a travel route moderates the effect of cultural distance on tourism demand; and the influence of cultural distance is different across time and different source markets.

Mexico and Uruguay inbound tourism demand


 
 
 
 The main objective of this paper is to estimate the tourism demand for Mexico and Uruguay, two very different countries, but for both of which tourism is an important activity, and mainly originating from a large neighbor. We try to analyze whether the determinants of tourism demand differ depending on the size of the country, or if being a neighboring country is the main determinant. So, we analyze the relationship between the number of American tourists visiting Mexico and Argentinian tourists visiting Uruguay, and the inbound tourists’ income and the bilateral real exchange rate (RER) between the visiting country and the hosting country, following the Johansen’s methodology. We found one cointegration relationship for each country, where the income-elasticity was greater than 2 for American tourists visiting Mexico, and nearly 3 for Argentinian tourists visiting Uruguay. Bilateral RERs were also significant in both models. Moreover, forecasts show the impacts of institutional changes on the tourism sector. The impact of arrival of President Macri to power was positive for Argentinian tourists visiting Uruguay, but President Trump's arrival in the US was negative for American tourists visiting Mexico.
 
 
 

Identifying core determinants of tourism demand in Hong Kong inbound markets

Purpose – The purpose of this paper is to identify the core factors that determine tourism demand in four inbound markets of Hong Kong. Design/methodology/approach – The general-to-specific approach was adopted as a step-by-step approach to identify the major determinants of tourism demand in Hong Kong. Findings – The study revealed word of mouth and income of source market are core determinants of tourism demand in all four inbound markets. Originality/value – Knowledge of core determinants of tourism demand is useful to destination management organizations and tourism business owners for strategic planning and decision making to increase total revenues.

Comprehending Determinants of Demand: Zimbabwe Tourism Destination Scenario

<p>The study investigated on the most dominant determinants of tourism consumption in Zimbabwe tourism destination. The research design was a QUAL to QUAN sequential mixed method starting with a qualitative research design followed by quantitative research. The qualitative research helped in getting the main determinants of demand using in-depth interviews from managers and experts in the tourism industry. The agreed determinants include disposable income, demographic changes, change in taste and preferences, religion dynamics, globalization, marketing and advertisement, customer knowledge, destination branding, social networks, destination’s own price, price of other destinations and media propaganda. These where then tested for their dominance in the accommodation, travel and resort sectors in Zimbabwe through a quantitative design. The results showed that the most controlling determinants of tourism demand in these three sectors include destination’s own prices, level of disposable income, social network discussions, media propaganda, marketing and advertising. The study recommended a low pricing strategy, extensive marketing and utilization of e-resources in marketing.</p>

The Determinants of Tourism Demand in Turkey

Using data of the inbound tourist arrivals to Turkey from France, Germany, UK, US, and Netherlands over the period 1986-2012, we applied autoregressive distributed lag (ARDL) approach to test for cointegration, and we estimated long run model and error correction model for tourism demand. The results referred that the most significant factor determines inbound tourist flows are the real per capita income and real effective exchange. We found weak effects for price and financial crisis, but the political events played a strong role differed from country to other. The added value of this article is the estimation of international tourism demand in Turkey using new approach and the newest data for Turkey

The Determinants of International Academic Tourism Demand in Europe

More and more students in Europe are willing to travel abroad for their higher education. This student mobility is considered as a type of tourist activity and the term ‘international academic tourism’ is applied to it. This paper presents an empirical analysis, using the system generalized method of moments estimator for dynamic panel data models. The purpose is to analyse the economic and other determinants of tourism demand in the European Region Action Scheme for the Mobility of University Students (Erasmus) based on inbound student and work placement mobility data during the exchange period from 2000 to 2010. The econometric results suggest that tourism demand is mainly driven by factors that are not strictly economic, such as relevant aspects of the destination chosen and preferences related to travel, the role of the tertiary education sector and the contribution of the Erasmus student mobility programme in the destination country. These findings have important implications for tourism policymakers.

Determinants of tourism demand in Greece: A panel data approach

Niniejsza praca ma na celu zbadanie determinant popytu turystycznego w Grecji w ciągu ośmiu lat (2004-2011). Turystyka stanowi glowny nurt greckiej gospodarki. Udzial turystyki w gospodarce waha sie tu od 15 do 20% PKB, odpowiednio dla pomiaru wykonywanego bezpośrednio i pośrednio. W artykule zastosowano podejście makroekonometryczne, a przede wszystkim na podstawie istniejącej literatury wykorzystano techniki estymacji danych panelowych dla danych szczegolowych dla kraju (lub regionu), bedących kombinacjami skladnikow makroekonomicznych, wskaźnikow oraz (wzglednych) wskaźnikow cen. W uzytych specyficznych technikach ekonometrycznych wzieto pod uwage zarowno wlaściwości statystyczne zmiennych, jak i roznice przekrojowe miedzy nimi. Glownym wnioskiem przeprowadzonego badania jest to, ze podejście wykorzystujące makroekonomiczne dane panelowe do wyjaśnienia wplywow z turystyki prowadzi do stworzenia modelu raczej dobrze dopasowanego, w ktorym zmienne niezalezne dobrze opisują zmienną zalezną. Wnioski sugerują rowniez, ze określone kierunki polityki kolejnych rządow Grecji (zarowno teraźniejszych, jak i poprzednich), ktore wskazywaly na poprawe konkurencyjności oraz orientacji gospodarki na zewnątrz, mogą rzeczywiście wplynąc pozytywnie na perspektywy greckiego sektora turystycznego. (abstrakt oryginalny)

The Determinants of Tourism Demand in South Africa Using a Dynamic Panel Data Approach

This article models inbound tourism demand for South Africa using a theoretical framework that is based on the gravity model and provides elasticity estimates that are useful for policy purposes. It uses a well-established gravity model following Anderson and van Wincoop's model (2003) to explain tourism flows. The article departs from most of the existing work estimating tourism demand and builds on the recent work of Durbarry, but employs a dynamic panel data setting. The results show that tourists are not too sensitive to changes in the tourism price of South Africa, indicating that it offers a unique product and experience to tourists. In fact, evidence tends to suggest that competing destinations may imploy tourism products that are unique to their destinations in the region. The level of development and tourism infrastructure also affect arrivals. It is also found that distance negatively affects arrivals, but common border and language play an important role. The dynamic model supports the presence of repeat tourism and positive word-of-mouth, particularly from European and American origins.

A Model of Tourism Demand for Tunisia: Inclusion of the Tourism Investment Variable

This paper examines the determinants of European tourism demand for Tunisia. France, Germany, Italy and the UK are considered as the four major origin countries of Tunisian tourism since they generate more than 70% of the total number of hotel nights. The author applies a cointegration analysis to examine the long-run relationship between the number of nights spent by Europeans in Tunisian hotels and leading macroeconomic variables such as income in the origin countries, relative prices and the volume of tourism investment for the period 1962–2005. Error correction models are also constructed and estimated to study the short-run dynamics of tourism demand for Tunisia. The paper finds that the first determinant of tourism demand is the income of the tourist-generating countries, whereas Tunisian tourism is less sensitive to price variations and tourism investment. The results of the study are consistent with both economic theory and empirical fact.

Determinants of Tourism Return Behaviour

Recent studies demonstrate that an increased number of Portuguese tourists choose Brazil as a tourism destination. Based on a literature review on the determinants of tourism demand, this study proposes a logit model that explains the probability of returning to this destination as a function of motivations, expectations, travel characteristics and the tourist's socio-demographic profile. After formulating the model, defining and testing of the six research hypotheses takes place. The study sample comprises 112 Portuguese tourists travelling to Brazil. The data fit the model adequately and the paper concludes with the authors discussing the theoretical and marketing implications.

Tourism in the Balearic Islands: A dynamic model for international demand using panel data

The Balearic Islands are one of the most important tourist destinations in the Mediterranean Sea. The tourism sector dominates the economic activity of the islands. The purpose of this study is to identify and measure the impact of the main determinants of the inbound international tourism flows. The annual panel data set includes the number of arrivals from the 14 most important generating countries during the period 1991–2003, and a number of possible explanatory variables. Taking into account the changing structure of consumer preferences, a dynamic model is estimated. The estimated coefficient for the lagged dependent variable may be reflecting the importance of consumer loyalty to the destination as a determinant of tourism demand. The results suggest that the demand is heavily dependent on the evolution of economic activity in each of the origin countries and on the relative cost of living of tourists in the destination. This study also suggests that diversification of promotion and provision of high-quality services are some recommended measures of tourism policy.