Remodeling international tourism demand: Old theory and new evidence

Tarik Dogru, Ercan Sirakaya-Turk and Geoffrey I. Crouch

Tourism Management, 2017, vol. 60, issue C, 47-55

Abstract: The purpose of this study is to advance the tourism demand theory by excluding simultaneous effects of exchange rates and prices in empirical models, formulating an alternative pricing modus operandi consistent with recent research in the area, and demonstrating the efficacy of the use of an industrial production index (IPI) as a proxy for income. A panel fully modified ordinary least squares (FMOLS) method is employed to estimate the inbound tourism demand for Turkey. Study findings suggest that the inclusion of exchange rates and prices, as mutually exclusive components, can be misleading; the IPI is not a good proxy for income; and country-specific coefficients need to be analyzed to accurately explain determinants of tourism demand for countries in the panel.

Keywords: Demand modeling; Tourism demand; Exchange rates; Prices; IPI; FMOLS (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (49)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:touman:v:60:y:2017:i:c:p:47-55

DOI: 10.1016/j.tourman.2016.11.010

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