An ARDL Bounds Test Approach to Modelling Tourist Expenditure in South Africa

Andrea Saayman and Melville Saayman

Tourism Economics, 2015, vol. 21, issue 1, 49-66

Abstract: This research follows micro-economic theory, according to which demand for a product is influenced by price, substitute prices and income, to determine the sensitivity of inbound tourist expenditure in South Africa to changes in these variables. Tourist expenditure per person per day from different origins forms the dependent variable. Using quarterly time-series data from 2003 to 2010, this article models inbound tourist expenditure from key source markets for the country. Previous research based on arrivals finds that South Africa is a relatively price-insensitive destination. However, this research shows that this is not the case for all markets. It mostly confirms the income elasticity of South Africa as a destination.

Keywords: tourism demand; price elasticity; income elasticity; competitiveness; bounds test; South Africa (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/te.2014.0436 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:21:y:2015:i:1:p:49-66

DOI: 10.5367/te.2014.0436

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().