Low cost airlines and international tourism demand. The case of Porto’s airport in the northwest of the Iberian Peninsula

Marcos Álvarez-Díaz, Manuel González-Gómez and María Soledad Otero-Giráldez
Authors registered in the RePEc Author Service: Mª Soledad Otero Giráldez

No 1902, Working Papers from Universidade de Vigo, Departamento de Economía Aplicada

Abstract: It is widely argued that low-cost carriers (LCCs) lead to an increase in tourism demand. However, there is no conclusive evidence when the airport is located in a region with large diaspora and outbound tourism. To gain insight into the relationship between LCCs and international tourism demand, we analyse whether a causal relationship exists between the number of international LCC passengers at the Porto airport and international tourism demand in the Galicia-North Portugal Euroregion using a vector autoregressive model. We evaluate the dynamics of the impacts of the LCC passengers on international tourism demand in a tourism demand model framework. The number of low-cost international passengers has a positive influence on international tourism demand in the regions of North Portugal and Galicia (Spain). Furthermore, the confidence interval for estimated elasticity overlaps the values estimated for main tourism destinations in previous studies in the Iberian Peninsula.

Keywords: Low cost carriers; elasticity; Euroregion Galicia-North of Portugal; international tourism; cointegration (search for similar items in EconPapers)
Pages: 19 pages
Date: 2019-02
New Economics Papers: this item is included in nep-tre and nep-tur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Low cost airlines and international tourism demand. The case of Porto's airport in the northwest of the Iberian Peninsula (2019)
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