Mixed effects of low-cost airlines on tourism in Spain

Rafael Myro (r.myro@ccee.ucm.es), Belén Rey (breylegi@ccee.ucm.es) and Pablo I.Hernández
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Belén Rey: Universidad Complutense de Madrid, Departamento de Economía Aplicada II
Pablo I.Hernández: Universidad Carlos III
Authors registered in the RePEc Author Service: M Belen Rey Legidos

No 14-04, Working Papers from Asociación Española de Economía y Finanzas Internacionales

Abstract: This article presents an estimate of the impact of low-cost airlines on Spanish tourism arriving from the principal EU-15 member states during the first decade of the 21st century by means of a multivariate analysis of tourist demand. The effects of low-cost companies (LCCs) on expenditure and on the number of tourists are separated. The expansion in low-cost airlines have had a positive and strong effect on the number of tourists but seems not to have influenced at all the aggregate expenditure made by them as the expenditure by tourist has decreased perhaps due to an increasing number of tourist with higher frugality or lesser income. This result could be regarded as a useful guide to policy makers when they subsidize LCCs.

Keywords: Air Transport; Low Cost Airlines; Tourist demand (search for similar items in EconPapers)
JEL-codes: D12 F14 L83 L93 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2014-02
New Economics Papers: this item is included in nep-tre and nep-tur
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