Is tourism a primary driver of inflation in house prices? The case of European countries

José Alberto Fuinhas (), Daniela Castilho (), Volkan Kaymaz () and Matheus Koengkan ()
Additional contact information
José Alberto Fuinhas: University of Coimbra
Daniela Castilho: University of Coimbra
Volkan Kaymaz: Istanbul Yeni Yuzyil University
Matheus Koengkan: University of Coimbra Institute for Legal Research (UCILeR), University of Coimbra

International Review of Economics, 2025, vol. 72, issue 2, No 9, 28 pages

Abstract: Abstract In this empirical investigation, the influence of tourism on housing prices was studied for 13 European Union countries from 2005 to 2019 using cs-ARDL and Quantile cs-ARDL econometric approaches. The findings reveal a positive effect running from the tourism sector (represented by tourism revenues and the number of arrivals) to housing price indices, indicating that this industry significantly impacts real estate markets. Moreover, the results show that economic growth, bank credit, and population growth drive house prices. These outcomes have significant implications for policymakers, highlighting the dual nature of tourism’s impact and the need for a careful balance between promoting tourism as an economic strategy and ensuring housing affordability for residents.

Keywords: Tourism revenues; Number of arrivals; House prices; Domestic credit; European countries (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s12232-025-00498-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:inrvec:v:72:y:2025:i:2:d:10.1007_s12232-025-00498-7

Ordering information: This journal article can be ordered from
http://www.springer. ... cy/journal/12232/PS2

DOI: 10.1007/s12232-025-00498-7

Access Statistics for this article

International Review of Economics is currently edited by Luigino Bruni

More articles in International Review of Economics from Springer, Happiness Economics and Interpersonal Relations (HEIRS)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().