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

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

Journal of Air Transport Management, 2019, vol. 79, issue C, -

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 international passengers on international inbound tourism demand in a tourism demand model framework. The main findings are that the number of LCC international passengers has a positive influence on the number of nights spent by international guests in hotels and similar establishments and that the calculated monthly average injection of money into the economy is between 3 and 4.1 million € for North Portugal and between 1.4 and 2 million € for Galicia (Spain).

Keywords: Low cost carriers; Elasticity; Euroregion Galicia-North Portugal; International inbound tourism; Cointegration (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:79:y:2019:i:c:4

DOI: 10.1016/j.jairtraman.2019.101689

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