 The sensitivity of tourism demand to exchange rate changes: an application to Swiss overnight stays in Austrian mountain villages during the winter seasonCurrent Issues in Tourism, 2015, vol. 18, issue 5, 465-476 Abstract: This paper investigates the impact of the depreciation of the euro against the Swiss franc on tourism demand. The data consist of Swiss overnight stays in West Austrian ski resorts during the winter season. Using a panel error correction model, we found that the elasticity of tourism demand with respect to exchange rates is significantly larger than unity in absolute terms. In particular, the real exchange rate elasticity ranges between −1.5 using the dynamic panel data model and −2.2 for the long difference regression model. This indicates that Swiss winter tourists are highly sensitive to changes in exchange rates and relative prices. High elevation ski resorts benefit most from the depreciation of the euro against the Swiss franc. For Austrian ski resorts, tentative estimates suggest that the depreciation of the euro against the Swiss franc has led to an additional 173,000 overnight stays over the last four winter seasons. Date: 2015 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:rcitxx:v:18:y:2015:i:5:p:465-476 Ordering information: This journal article can be ordered from DOI: 10.1080/13683500.2013.810610 Access Statistics for this article Current Issues in Tourism is currently edited by Jennifer Tunstall More articles in Current Issues in Tourism from Taylor & Francis Journals |
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