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UK Tourists, the Great Recession and Irish Tourism Policy

Author

Listed:
  • Niamh Callaghan

    (The Economic and Social Research Institute)

  • Richard S. J. Tol

    (University of Sussex, United Kingdom The Institute for Environmental Studies, Vrije Universiteit, Amsterdam Department of Spacial Economics, Vrije Universiteit, Amsterdam)

Abstract

Inbound tourism to Ireland fell sharply in 2009 and 2010. Visits to Ireland from the UK, the dominant country of origin of visitors to Ireland, did not fall faster than UK visits elsewhere. We use a pooled travel cost model for UK travellers to estimate price elasticities of tourism demand for various market segments. The proposed reduction in the travel tax, and the reduction in the VAT rate for “tourism goods and services” would lead to a modest increase in visitor numbers and expenditure. However, the increase in expenditure is small compared to the forgone tax revenue.

Suggested Citation

  • Niamh Callaghan & Richard S. J. Tol, 2013. "UK Tourists, the Great Recession and Irish Tourism Policy," The Economic and Social Review, Economic and Social Studies, vol. 44(1), pages 103-116.
    • Handle: RePEc:eso:journl:v:44:y:2013:i:1:p:103-115
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    File URL: http://www.esr.ie/vol44_1/05%20Callaghan%20PP%20_ESRI%20Vol%2044-1.pdf
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    References listed on IDEAS

    as
    1. Panayiota Lyssiotou, 2000. "Dynamic analysis of British demand for tourism abroad," Empirical Economics, Springer, vol. 25(3), pages 421-436.
    2. Graham, Anne, 2000. "Demand for leisure air travel and limits to growth," Journal of Air Transport Management, Elsevier, vol. 6(2), pages 109-118.
    3. Sarath Divisekera & Jim Deegan, 2010. "An analysis of consumption behaviour of foreign tourists in Ireland," Applied Economics, Taylor & Francis Journals, vol. 42(13), pages 1681-1697.
    4. Njegovan, Nenad, 2006. "Elasticities of demand for leisure air travel: A system modelling approach," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 33-39.
    5. Grubb, Howard & Mason, Alexina, 2001. "Long lead-time forecasting of UK air passengers by Holt-Winters methods with damped trend," International Journal of Forecasting, Elsevier, vol. 17(1), pages 71-82.
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    1. Zdravko Šergo & Jasmina Gržiniæ & Mirela Suèiæ Èevra, 2017. "The tourism and travel industry and its effect on the Great Recession: A multilevel survival analysis," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 35(2), pages 427-458.

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