Identifying structural asymmetries by jointly estimating tourism expenditure intensity and extensity

Usamah F Alfarhan, Khaldoon Nusair, Fevzi Okumus and Nikhashemi Sr

Tourism Economics, 2024, vol. 30, issue 5, 1281-1305

Abstract: This article proposes a structural framework for the joint estimation of tourists’ daily personal expenditures (intensity) and length of stay (extensity). We reconceptualize commonly accepted exogeneous determinants of both outcomes into a set of exogenous antecedents pre-existing the travel decision and a set of endogenous mediators that capture the role of market exchange after the travel decision and corresponding choices are made. Findings reveal that the effects of some exogenous factors, such as gender, income, and motives on total spending are fully mediated within the intensity and extensity components, absent of any direct impacts. Other factors, such as nationality, appear not to influence spending due to offsetting mediated effects. As these forces are difficult to discern via reduced-form modeling, the proposed structural framework provides tourism managers with deeper insight into the footprints of established expenditure determinants, potentially improving upon the efficacy of marketing strategies.

Keywords: tourism expenditure; length of stay; structural equations; modeling; C51; D11; D12; Z33 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:30:y:2024:i:5:p:1281-1305

DOI: 10.1177/13548166231204668

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