Mortgage debt and domestic and outbound travel expenditures: International evidence

Hassan Gholipour Fereidouni, Mohammad Reza Farzanegan (), Charbel Bassil and Xuan Zhao

Tourism Economics, 2025, vol. 31, issue 3, 504-509

Abstract: We explore the relationship between the mortgage debt of households and their spending on domestic and outbound tourism and travel. We estimate a dynamic panel data model for a sample of 27 countries for 2010-2021, and find evidence for a negative relationship. Hence, we show that in countries where the mortgage per capita is high, residents allocate fewer expenditures on domestic and outbound tourism. We also find that the reduction in outbound tourism spending is more pronounced than the decrease in domestic tourism spending. Our findings can benefit policymakers and firms in the tourism industry by providing the knowledge necessary for creating successful promotional strategies.

Keywords: consumption expenditures; domestic travel; household debt; international travel; mortgage; D14; Z39 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:31:y:2025:i:3:p:504-509

DOI: 10.1177/13548166241258796

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