Tourism in Iceland: Persistence and seasonality

Luis Gil-Alana and Edward H. Huijbens

Annals of Tourism Research, 2018, vol. 68, issue C, 20-29

Abstract: This paper analyses tourism in Iceland using fractional integration and taking into account the seasonality and the degree of persistence in the data. Using annual data, the unit root hypothesis cannot be rejected, implying permanency of shocks. However using, monthly data, a break is found at 2009m7 and the orders of integration are in the interval (0, 0,5) suggesting mean reversion. The conclusion is that exogenous shocks impacting inbound tourism do not persist and tend to disappear relatively fast. The key policy implications thereof are reported at the end of the paper, critiquing the classical response to perceived slumps in inbound tourism that include marketing and promotion instead of developing infrastructure in anticipation of resumed growth in inbound tourism.

Keywords: Iceland; Tourism time series; Long memory; Persistence; Policy (search for similar items in EconPapers)
JEL-codes: C22 L83 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0160738317301445
Full text for ScienceDirect subscribers only

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:eee:anture:v:68:y:2018:i:c:p:20-29

DOI: 10.1016/j.annals.2017.11.002

Access Statistics for this article

Annals of Tourism Research is currently edited by John Tribe

More articles in Annals of Tourism Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().