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The Influence of Income and Currency Changes on Tourist Inflow to Norwegian Campsites: The Case of Swedish and German Visitors

Author

Listed:
  • Leiv Opstad

    (NTNU Business School, Norwegian University of Science and Technology, 7491 Trondheim, Norway
    These authors contributed equally to this work.)

  • Randi Hammervold

    (NTNU Business School, Norwegian University of Science and Technology, 7491 Trondheim, Norway
    These authors contributed equally to this work.)

  • Johannes Idsø

    (Department of Environmental Sciences, Western Norway University of Applied Sciences, 6856 Sogndal, Norway
    These authors contributed equally to this work.
    Current address: Høgskulen på Vestlandet Campus Sogndal, Røyrgata 6, 6856 Sogndal, Norway.)

Abstract

There are few published articles on the demand for campsites, despite this being an important segment of the tourism industry. The purpose of this study was to gain further understanding of this topic. Using publicly available data over a period of 20 years, income and currency elasticity were estimated for German and Swedish camping tourists by using a natural logarithmic regression model with time series data. The results showed that both income and the exchange rate influenced the number of overnight stays, but the impact was rather small. The income elasticity for Swedish visitors was significant with a value of about 0.5, while it was zero and not significant for German camping tourists. Appreciation of the euro was associated with more visitors from Germany, but the estimated exchange rate elasticity was below 1.0 (and significant). A stronger Swedish currency relative to the Norwegian currency did not appear to have an effect. However, a stronger Swedish exchange rate, measured in euros, had a positive impact on Swedish camping visitors in Norway. The reason might be that more Swedish residents spend holidays abroad, and there is complementarity among the neighboring countries. Such calculations provide useful information for tourist industry planning.

Suggested Citation

  • Leiv Opstad & Randi Hammervold & Johannes Idsø, 2021. "The Influence of Income and Currency Changes on Tourist Inflow to Norwegian Campsites: The Case of Swedish and German Visitors," Economies, MDPI, vol. 9(3), pages 1-13, July.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:3:p:104-:d:593660
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    References listed on IDEAS

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    Cited by:

    1. Leiv Opstad & Johannes Idso & Robin Valenta, 2021. "The Degree of Profit Persistence in the Tourism Industry: The Case of Norwegian Campsites," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 140-155.

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