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Modelling interstate tourism demand in Australia: A cointegration approach

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  • Allen, David
  • Yap, Ghialy
  • Shareef, Riaz

Abstract

Interstate tourism is an important component of the domestic tourism business in Australia. However, empirical analyses of interstate tourism demand have not been previously undertaken. The motivation for this paper is to investigate the short- and long-run causal relationships between economic factors and interstate tourism demand in Australia. Using a cointegration approach, this study discovers two distinct results. First, Australian household income, accommodation prices, prices of recreation and restaurants, and domestic airfares have significant impacts on the demand in the short-run. Second, some of the long-run economic coefficients show incorrect signs, which contradict the theory of consumer demand.

Suggested Citation

  • Allen, David & Yap, Ghialy & Shareef, Riaz, 2009. "Modelling interstate tourism demand in Australia: A cointegration approach," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 79(9), pages 2733-2740.
    • Handle: RePEc:eee:matcom:v:79:y:2009:i:9:p:2733-2740
    DOI: 10.1016/j.matcom.2008.10.006
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    Cited by:

    1. Ketenci, Natalya, 2009. "The ARDL Approach to Cointegration Analysis of Tourism Demand in Turkey: with Greece as the substitution destination," MPRA Paper 86602, University Library of Munich, Germany.
    2. Deng, Minfeng & Athanasopoulos, George, 2011. "Modelling Australian domestic and international inbound travel: a spatial–temporal approach," Tourism Management, Elsevier, vol. 32(5), pages 1075-1084.
    3. Yang, Yang & Liu, Ze-Hua & Qi, Qiuyin, 2014. "Domestic tourism demand of urban and rural residents in China: Does relative income matter?," Tourism Management, Elsevier, vol. 40(C), pages 193-202.
    4. Yap, Ghialy, 2013. "The impacts of exchange rates on Australia's domestic and outbound travel markets," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 93(C), pages 139-150.
    5. Burak Darici & Ahmet Aydin & Fatih Ayhan & Merve Altaylar, 2023. "Macroeconomic Determinants of Tourism Demand Toward Emerging Markets," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(73-2), pages 837-864, December.
    6. Athanasopoulos, George & Deng, Minfeng & Li, Gang & Song, Haiyan, 2014. "Modelling substitution between domestic and outbound tourism in Australia: A system-of-equations approach," Tourism Management, Elsevier, vol. 45(C), pages 159-170.
    7. Schiff, Aaron & Becken, Susanne, 2011. "Demand elasticity estimates for New Zealand tourism," Tourism Management, Elsevier, vol. 32(3), pages 564-575.
    8. Muhammad Shafiullah & Luke Emeka Okafor & Usman Khalid, 2019. "Determinants of international tourism demand: Evidence from Australian states and territories," Tourism Economics, , vol. 25(2), pages 274-296, March.
    9. Ghialy Yap, 2010. "Australian domestic tourism demand analysis using panel data static regression," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 2(2), pages 113-127, April.

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