IDEAS home Printed from https://ideas.repec.org/a/eee/anture/v67y2017icp67-77.html
   My bibliography  Save this article

Causality in direct air services and tourism demand

Author

Listed:
  • Koo, Tay T.R.
  • Lim, Christine
  • Dobruszkes, Frédéric

Abstract

Unlike income or relative prices, air transport attributes and tourism demand on a given route can be endogenous. Using instrumental variables, this study attempted to account for the circular causality in estimating the effect of direct air service on tourism demand. Although we found evidence of endogeneity, the nature of the circular causation is context-specific; while direct air service can be regarded as an exogenous variable in one direction, it can have an endogenous relationship on the other. Findings emphasise the need to explicate information about the network nature of transportation and its endogenous relations with tourism.

Suggested Citation

  • Koo, Tay T.R. & Lim, Christine & Dobruszkes, Frédéric, 2017. "Causality in direct air services and tourism demand," Annals of Tourism Research, Elsevier, vol. 67(C), pages 67-77.
    • Handle: RePEc:eee:anture:v:67:y:2017:i:c:p:67-77
    DOI: 10.1016/j.annals.2017.08.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160738317301275
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.annals.2017.08.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Steven Buigut & Djesika D. Amendah, 2016. "Effect of terrorism on demand for tourism in Kenya," Tourism Economics, , vol. 22(5), pages 928-938, October.
    2. Gao, Yi & Koo, Tay T.R., 2014. "Flying Australia–Europe via China: A qualitative analysis of the factors affecting travelers' choice of Chinese carriers using online comments data," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 23-29.
    3. Takahashi, Takaaki, 2011. "Directional imbalance in transport prices and economic geography," Journal of Urban Economics, Elsevier, vol. 69(1), pages 92-102, January.
    4. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    5. Forsyth, Peter, 2006. "Martin Kunz Memorial Lecture. Tourism benefits and aviation policy," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 3-13.
    6. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669, Elsevier.
    7. Wang, Kun & Tsui, Kan Wai Hong & Liang, Liping & Fu, Xiaowen, 2017. "Entry patterns of low-cost carriers in Hong Kong and implications to the regional market," Journal of Air Transport Management, Elsevier, vol. 64(PB), pages 101-112.
    8. repec:hal:wpspec:info:hdl:2441/10191 is not listed on IDEAS
    9. Warnock-Smith, David & O’Connell, John F., 2011. "The impact of air policy on incoming tourist traffic: the contrasting cases of the Caribbean Community and the Middle-East," Journal of Transport Geography, Elsevier, vol. 19(2), pages 265-274.
    10. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413, September.
    11. Papatheodorou, Andreas & Arvanitis, Pavlos, 2009. "Spatial evolution of airport traffic and air transport liberalisation: the case of Greece," Journal of Transport Geography, Elsevier, vol. 17(5), pages 402-412.
    12. Hofer, Christian & Windle, Robert J. & Dresner, Martin E., 2008. "Price premiums and low cost carrier competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(5), pages 864-882, September.
    13. James H. Stock & Francesco Trebbi, 2003. "Retrospectives: Who Invented Instrumental Variable Regression?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 177-194, Summer.
    14. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," ULB Institutional Repository 2013/142613, ULB -- Universite Libre de Bruxelles.
    15. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    16. Halpern, Nigel & Graham, Anne, 2015. "Airport route development: A survey of current practice," Tourism Management, Elsevier, vol. 46(C), pages 213-221.
    17. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LP, vol. 7(4), pages 465-506, December.
    18. Frédéric Dobruszkes & Véronique Mondou & Aymen Ghedira, 2016. "Assessing the impacts of aviation liberalisation on tourism: Some methodological considerations derived from the Moroccan and Tunisian cases," ULB Institutional Repository 2013/224514, ULB -- Universite Libre de Bruxelles.
    19. repec:hal:spmain:info:hdl:2441/10191 is not listed on IDEAS
    20. M. Thea Sinclair, 1998. "Tourism and economic development: A survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(5), pages 1-51.
    21. Seetaram, Neelu, 2010. "Computing airfare elasticities or opening Pandora's box," Research in Transportation Economics, Elsevier, vol. 26(1), pages 27-36.
    22. Rey, Belén & Myro, Rafael L. & Galera, Asun, 2011. "Effect of low-cost airlines on tourism in Spain. A dynamic panel data model," Journal of Air Transport Management, Elsevier, vol. 17(3), pages 163-167.
    23. Papatheodorou, Andreas, 2002. "Civil aviation regimes and leisure tourism in Europe," Journal of Air Transport Management, Elsevier, vol. 8(6), pages 381-388.
    24. Zhang, Yahua & Findlay, Christopher, 2014. "Air transport policy and its impacts on passenger traffic and tourist flows," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 42-48.
    25. Andrew Collins & John Rose & Stephane Hess, 2012. "Interactive stated choice surveys: a study of air travel behaviour," Transportation, Springer, vol. 39(1), pages 55-79, January.
    26. Baker, Douglas & Merkert, Rico & Kamruzzaman, Md., 2015. "Regional aviation and economic growth: cointegration and causality analysis in Australia," Journal of Transport Geography, Elsevier, vol. 43(C), pages 140-150.
    27. Koo, Tay T.R. & Tan, David T. & Duval, David Timothy, 2013. "Direct air transport and demand interaction: A vector error-correction model approach," Journal of Air Transport Management, Elsevier, vol. 28(C), pages 14-19.
    28. Piermartini, Roberta & Rousová, Linda, 2008. "Liberalization of air transport services and passenger traffic," WTO Staff Working Papers ERSD-2008-06, World Trade Organization (WTO), Economic Research and Statistics Division.
    29. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.
    30. Seetaram, Neelu & Forsyth, Peter & Dwyer, Larry, 2016. "Measuring price elasticities of demand for outbound tourism using competitiveness indices," Annals of Tourism Research, Elsevier, vol. 56(C), pages 65-79.
    31. Dobruszkes, Frédéric & Mondou, Véronique & Ghedira, Aymen, 2016. "Assessing the impacts of aviation liberalisation on tourism: Some methodological considerations derived from the Moroccan and Tunisian cases," Journal of Transport Geography, Elsevier, vol. 50(C), pages 115-127.
    32. Fu, Xiaowen & Lei, Zheng & Wang, Kun & Yan, Jia, 2015. "Low cost carrier competition and route entry in an emerging but regulated aviation market – The case of China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 79(C), pages 3-16.
    33. Miren Lafourcade & Jacques-François Thisse, 2008. "New economic geography: A guide to transport analysis," Working Papers halshs-00586878, HAL.
    34. Seetaram, Neelu, 2012. "Immigration and international inbound tourism: Empirical evidence from Australia," Tourism Management, Elsevier, vol. 33(6), pages 1535-1543.
    35. Donzelli, Matteo, 2010. "The effect of low-cost air transportation on the local economy: Evidence from Southern Italy," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 121-126.
    36. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: the EU–Morocco case," ULB Institutional Repository 2013/145790, ULB -- Universite Libre de Bruxelles.
    37. Yair Eilat & Liran Einav, 2004. "Determinants of international tourism: a three-dimensional panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1315-1327.
    38. Duval, David Timothy & Schiff, Aaron, 2011. "Effect of air services availability on international visitors to New Zealand," Journal of Air Transport Management, Elsevier, vol. 17(3), pages 175-180.
    39. Bieger, Thomas & Wittmer, Andreas, 2006. "Air transport and tourism—Perspectives and challenges for destinations, airlines and governments," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 40-46.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tsui, Wai Hong Kan & Fu, Xiaowen & Yin, Chuanzhong & Zhang, Huaxin, 2021. "Hong Kong's aviation and tourism growth - An empirical investigation," Journal of Air Transport Management, Elsevier, vol. 93(C).
    2. Luisa Doerr & Florian Dorn & Stefanie Gaebler & Niklas Potrafke, 2020. "How new airport infrastructure promotes tourism: evidence from a synthetic control approach in German regions," Regional Studies, Taylor & Francis Journals, vol. 54(10), pages 1402-1412, October.
    3. Bontemps, Christian & Martini, Gianmaria & Porta, Flavio, 2024. "The Effects of LCCs Subsidies on the Tourism Industry," TSE Working Papers 24-1540, Toulouse School of Economics (TSE).
    4. Defilippi, Enzo & Gutierrez Andrade, Jesús, 2021. "More flights seats, more tourists?: evidence from Perú ," Working Papers 21-01, Centro de Investigación, Universidad del Pacífico.
    5. Koo, Tay T.R. & Lau, Pong-Lung, 2019. "Impact of aviation on spatial distribution of tourism: An experiment," Annals of Tourism Research, Elsevier, vol. 78(C), pages 1-1.
    6. Marlena Wilk & dr Marta Daroń, 2018. "Zarządzanie kapitałem ludzkim w sektorze turystycznym," Nowoczesne Systemy Zarządzania. Modern Management Systems, Military University of Technology, Faculty of Security, Logistics and Management, Institute of Organization and Management, issue 3, pages 111-121.
    7. Wang, Sen & Gao, Yi, 2021. "A literature review and citation analyses of air travel demand studies published between 2010 and 2020," Journal of Air Transport Management, Elsevier, vol. 97(C).
    8. Bulatovic, Iva & Papatheodorou, Andreas, 2023. "Civil aviation and tourism demand in Montenegro: A panel data approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(1), pages 25-36.
    9. Wearing, Stephen & Beirman, David & Grabowski, Simone, 2020. "Engaging volunteer tourism in post-disaster recovery in Nepal," Annals of Tourism Research, Elsevier, vol. 80(C).
    10. Mengmeng Qiang & Manhong Shen & Huiming Xie, 2019. "Cultural diffusion and international inbound tourism: Evidence from China," Tourism Economics, , vol. 25(6), pages 884-903, September.
    11. Mehmet YAŞAR, 2024. "Investigating The Air Travel-Tourism Relationship Using Granger Causality Analysis: The Case Of Turkish Destinations," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 19(1), pages 301-316, April.
    12. Spasojevic, Bojana & Lohmann, Gui & Scott, Noel, 2019. "Leadership and governance in air route development," Annals of Tourism Research, Elsevier, vol. 78(C), pages 1-1.
    13. Rockie U Kei Kuok & Tay T.R. Koo & Christine Lim, 2024. "Air transport capacity and tourism demand: A panel cointegration approach with cross-sectionally augmented autoregressive distributed lag (CS-ARDL) model," Tourism Economics, , vol. 30(3), pages 702-727, May.
    14. Jin, Yu & Xi, Haonan & Wang, Xuhui & Ren, Xin & Yuan, Libin, 2022. "Evaluation of the Integration Policy in China: Does the Integration of Culture and Tourism Promote Tourism Development?," Annals of Tourism Research, Elsevier, vol. 97(C).
    15. Koo, Tay T.R. & Hossein Rashidi, Taha & Park, Jin-Woo & Wu, Cheng-Lung & Tseng, Wen-Chun, 2017. "The effect of enhanced international air access on the demand for peripheral tourism destinations: Evidence from air itinerary choice behaviour of Korean visitors to Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 116-129.
    16. Alderighi, Marco & Gaggero, Alberto A., 2019. "Flight availability and international tourism flows," Annals of Tourism Research, Elsevier, vol. 79(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dobruszkes, Frédéric & Mondou, Véronique & Ghedira, Aymen, 2016. "Assessing the impacts of aviation liberalisation on tourism: Some methodological considerations derived from the Moroccan and Tunisian cases," Journal of Transport Geography, Elsevier, vol. 50(C), pages 115-127.
    2. Wu, Chuntao, 2016. "How aviation deregulation promotes international tourism in Northeast Asia: A case of the charter market in Japan," Journal of Air Transport Management, Elsevier, vol. 57(C), pages 260-271.
    3. Wu, Chuntao & Jiang, Qiuyue & Yang, Hangjun, 2018. "Changes in cross-strait aviation policies and their impact on tourism flows since 2009," Transport Policy, Elsevier, vol. 63(C), pages 61-72.
    4. Bernardo, Valeria & Fageda, Xavier, 2017. "The effects of the Morocco-European Union open skies agreement: A difference-in-differences analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 24-41.
    5. Liu, Shaoxuan & Oum, Tae Hoon, 2018. "Prospects for air policy liberalization in China as a Result of China-ASEAN Open Skies: Changing role of Chinese mega carriers in global scene and anticipated Low Cost Carrier competition," Transport Policy, Elsevier, vol. 72(C), pages 1-9.
    6. Alderighi, Marco & Gaggero, Alberto A., 2019. "Flight availability and international tourism flows," Annals of Tourism Research, Elsevier, vol. 79(C).
    7. Koo, Tay T.R. & Hossein Rashidi, Taha & Park, Jin-Woo & Wu, Cheng-Lung & Tseng, Wen-Chun, 2017. "The effect of enhanced international air access on the demand for peripheral tourism destinations: Evidence from air itinerary choice behaviour of Korean visitors to Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 116-129.
    8. Tay T. R. Koo & David Tan & David Timothy Duval, 2018. "The Effect of Levels of Air Service Availability on Inbound tourism demand from Asia to Australia," Advances in Airline Economics, in: Airline Economics in Asia, volume 7, pages 145-167, Emerald Group Publishing Limited.
    9. Wu, Chuntao & Liao, Maozhu & Zhang, Yahua & Luo, Mingzhi & Zhang, Guoquan, 2020. "Network development of low-cost carriers in China's domestic market," Journal of Transport Geography, Elsevier, vol. 84(C).
    10. Fageda, Xavier & Jiménez, Juan Luis & Perdiguero, Jordi & Marrero, Kevin, 2017. "Does market exit of a network airline affect airline prices and frequencies on tourist routes?," Tourism Management, Elsevier, vol. 61(C), pages 465-471.
    11. Vieira, José & Câmara, Gualter & Silva, Francisco & Santos, Carlos, 2019. "Airline choice and tourism growth in the Azores," Journal of Air Transport Management, Elsevier, vol. 77(C), pages 1-6.
    12. Stephen Pratt & Markus Schuckert, 2019. "Economic impact of low-cost carrier in a saturated transport market: Net benefits or zero-sum game?," Tourism Economics, , vol. 25(2), pages 149-170, March.
    13. à lvarez-Díaz, Marcos & González-Gómez, Manuel & Otero-Giráldez, María Soledad, 2019. "Low cost airlines and international tourism demand. The case of Porto's airport in the northwest of the Iberian Peninsula," Journal of Air Transport Management, Elsevier, vol. 79(C), pages 1-1.
    14. Albalate, Daniel & Fageda, Xavier, 2016. "High speed rail and tourism: Empirical evidence from Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 174-185.
    15. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.
    16. Hatice Ozer Balli & Faruk Balli & Wai Hong Kan Tsui, 2019. "International tourism demand, number of airline seats and trade triangle: Evidence from New Zealand partners," Tourism Economics, , vol. 25(1), pages 132-144, February.
    17. Daniel Albalate del sol, 2015. "Evaluating HSR availability on Tourism: Evidence from Spanish Provinces and Cities," ERSA conference papers ersa15p288, European Regional Science Association.
    18. Corbet, Shaen & O’Connell, John F. & Efthymiou, Marina & Guiomard, Cathal & Lucey, Brian, 2019. "The impact of terrorism on European tourism," Annals of Tourism Research, Elsevier, vol. 75(C), pages 1-17.
    19. Wang, Yu-Chen & Wong, Jinn-Tsai, 2019. "Exploring air network formation and development with a two-part model," Journal of Transport Geography, Elsevier, vol. 75(C), pages 122-131.
    20. Wai Hong Kan Tsui & Faruk Balli & David Tat Wei Tan & Oscar Lau & Mudassar Hasan, 2018. "New Zealand business tourism," Tourism Economics, , vol. 24(4), pages 386-417, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:anture:v:67:y:2017:i:c:p:67-77. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/annals-of-tourism-research/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.