Thailand's Long-Run Tourism Demand Elasticities

Akarapong Untong, Vicente Ramos, Mingsarn Kaosa-Ard and Javier Rey-Maquieira
Additional contact information
Akarapong Untong: Public Policy Studies Institute, Chiang Mai University, 145/5 Moo 1 T. Chang Puek A. Muang, Chiang Mai 50200, Thailand
Vicente Ramos: Department of Applied Economics, University of the Balearic Islands, Ctra Valldemossa, Km 7.5, Palma 07122, Spain
Mingsarn Kaosa-Ard: Public Policy Studies Institute, Chiang Mai University, 145/5 Moo 1 T. Chang Puek A. Muang, Chiang Mai 50200, Thailand
Javier Rey-Maquieira: Department of Applied Economics, University of the Balearic Islands, Ctra Valldemossa, Km 7.5, Palma 07122, Spain

Tourism Economics, 2014, vol. 20, issue 3, 595-610

Abstract: This paper estimates Thailand's long-run tourism demand elasticities for a set of origin countries by applying dynamic ordinary least squares. A detailed analysis of the potential competing destinations for each origin country is performed to ensure a precise coefficient for the substituting elasticity. A long-run static model of time varying parameter is then used to analyse the effects on the estimation of a potential structural change caused by the 1997 economic crisis and the subsequent change in exchange rate policy. The results show that there are different demand elasticities for each origin market and that own price elasticity is lower than substituting price elasticity for most origin countries. These findings indicate that price-setting strategies should be specific for each origin market and that information about prices in competing destinations needs to be considered. Moreover, the results show that there was a structural change in 1997 that severely affected the estimation.

Keywords: long-run elasticities; structural change; dynamic OLS; time varying parameter; Thailand (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/te.2013.0280 (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:20:y:2014:i:3:p:595-610

DOI: 10.5367/te.2013.0280

Access Statistics for this article

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