IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i20p8707-d431992.html
   My bibliography  Save this article

Global Estimation of the Elasticity of “International Tourist Arrivals/Income from Tourism”

Author

Listed:
  • Marcelino Sanchez-Rivero

    (Department of Economics, University of Extremadura, 06006 Badajoz, Spain)

  • Juan Ignacio Pulido-Fernández

    (Department of Economics, University of Jaén, 23071 Jaén, Spain)

Abstract

The prevailing discourse relates the widespread belief that an increase in the volume of tourist arrivals is a clear sign of success for tourism destination managers. According to a logarithmic regression function that estimates the inverse demand-income elasticity, it has been found that tourism flows are not the best measure to use in assessing the contribution of tourism to economic growth. Rather, the volume of income that is generated from these tourists should be considered. Furthermore, based on an analysis of correlations, it was found that the territories having the greatest efficiency in generating income from tourism are more competitive in terms of tourism. The results obtained may contribute to changing the approach used by both private and public bodies, and they may also help them to re-focus their business planning and policymaking so as to emphasize an increase in income level and not in volume of tourists.

Suggested Citation

  • Marcelino Sanchez-Rivero & Juan Ignacio Pulido-Fernández, 2020. "Global Estimation of the Elasticity of “International Tourist Arrivals/Income from Tourism”," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:20:p:8707-:d:431992
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/20/8707/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/20/8707/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lindsay W. Turner & Stephen F. Witt, 2001. "Factors Influencing Demand for International Tourism: Tourism Demand Analysis Using Structural Equation Modelling, Revisited," Tourism Economics, , vol. 7(1), pages 21-38, March.
    2. Su, Yu-Wen & Lin, Hui-Lin, 2014. "Analysis of international tourist arrivals worldwide: The role of world heritage sites," Tourism Management, Elsevier, vol. 40(C), pages 46-58.
    3. Antonio García-Sánchez & Ester Fernández-Rubio & M. Dolores Collado, 2013. "Daily Expenses of Foreign Tourists, Length of Stay and Activities: Evidence from Spain," Tourism Economics, , vol. 19(3), pages 613-630, June.
    4. Cox, Tom & Houdmont, Jonathan & Griffiths, Amanda, 2006. "Rail passenger crowding, stress, health and safety in Britain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(3), pages 244-258, March.
    5. E. M. Ekanayake & Aubrey E. Long, 2012. "Tourism Development And Economic Growth In Developing Countries," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 6(1), pages 51-63.
    6. Francesco Zanini & Fabio Lando & Manuel Bellio, 2008. "Effects of Tourism on Venice: Commercial Changes over 30 Years," Working Papers 2008_33, Department of Economics, University of Venice "Ca' Foscari".
    7. Arslanturk, Yalcin & Balcilar, Mehmet & Ozdemir, Zeynel Abidin, 2011. "Time-varying linkages between tourism receipts and economic growth in a small open economy," Economic Modelling, Elsevier, vol. 28(1), pages 664-671.
    8. Nickerson, Norma Polovitz & Jorgenson, Jake & Boley, B. Bynum, 2016. "Are sustainable tourists a higher spending market?," Tourism Management, Elsevier, vol. 54(C), pages 170-177.
    9. Stanislav Ivanov & Craig Webster, 2007. "Measuring the Impact of Tourism on Economic Growth," Tourism Economics, , vol. 13(3), pages 379-388, September.
    10. Juan Luis Eugenio-Martín & Noelia Martín Morales & Riccardo Scarpa, 2004. "Tourism and Economic Growth in Latin American Countries: A Panel Data Approach," Working Papers 2004.26, Fondazione Eni Enrico Mattei.
    11. Schubert, Stefan Franz & Brida, Juan Gabriel & Risso, Wiston Adrián, 2011. "The impacts of international tourism demand on economic growth of small economies dependent on tourism," Tourism Management, Elsevier, vol. 32(2), pages 377-385.
    12. Webster, Craig & Ivanov, Stanislav, 2014. "Transforming competitiveness into economic benefits: Does tourism stimulate economic growth in more competitive destinations?," Tourism Management, Elsevier, vol. 40(C), pages 137-140.
    13. M. Thea Sinclair, 1998. "Tourism and economic development: A survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(5), pages 1-51.
    14. Nikolaos Dritsakis, 2012. "Tourism Development and Economic Growth in Seven Mediterranean Countries: A Panel Data Approach," Tourism Economics, , vol. 18(4), pages 801-816, August.
    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. 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.

    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. Salah Eddine Sari Hassoun & Khayereddine Salim Adda & Asma Hadjira Sebbane, 2021. "Examining the connection among national tourism expenditure and economic growth in Algeria," Future Business Journal, Springer, vol. 7(1), pages 1-9, December.
    2. Ngozi Helen Oguchi & Fen Luo, 2021. "Estimating the Nexus of Tourism on Sustainable Development Goals in Nigeria," Technium Social Sciences Journal, Technium Science, vol. 20(1), pages 751-771, June.
    3. Trinajstic, Masa & Baresa, Suzana & Bogdan, Sinisa, 2018. "Regional Economic Growth And Tourism: A Panel Data Approach," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 9(2), pages 145-155.
    4. Nnamdi Chinwendu Nwaeze & Kingsley Ikechukwu Okere & Izuchukwu Ogbodo & Obumneke Bob Muoneke & Ifeoma Nwakaego Sandra Ngini & Samuel Uchezuike Ani, 2023. "Dynamic linkages between tourism, economic growth, trade, energy demand and carbon emission: evidence from EU," Future Business Journal, Springer, vol. 9(1), pages 1-12, December.
    5. Ceyhun Can OZCAN & Murat ASLAN & Saban NAZLIOGLU, 2017. "Economic freedom, economic growth and international tourism for post-communist (transition) countries: A panel causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(2(611), S), pages 75-98, Summer.
    6. Muhammad Hasnain Ali & Rao Akmal Ali & Ahsan Farooq, 2021. "The Effect of Tourism, Economic Growth and Environment in Developing Countries," iRASD Journal of Energy and Environment, International Research Association for Sustainable Development (iRASD), vol. 2(1), pages 24-33, June.
    7. Antonakakis, Nikos & Dragouni, Mina & Eeckels, Bruno & Filis, George, 2015. "Tourism and economic growth revisited: Empirical evidence from a Panel VAR approach," MPRA Paper 67419, University Library of Munich, Germany.
    8. Blanka Škrabić Perić & Blanka Šimundić & Vinko Muštra & Marijana Vugdelija, 2021. "The Role of UNESCO Cultural Heritage and Cultural Sector in Tourism Development: The Case of EU Countries," Sustainability, MDPI, vol. 13(10), pages 1-14, May.
    9. Robertico Croes & Manuel A. Rivera, 2017. "Tourism’s potential to benefit the poor," Tourism Economics, , vol. 23(1), pages 29-48, February.
    10. Francis Baidoo & Elikplimi Komla Agbloyor & Vera Ogeh Lassey Fiador & Nana Amaniampong Marfo, 2022. "Do countries’ geographical locations moderate the tourism-led economic growth nexus in sub-Saharan Africa?," Tourism Economics, , vol. 28(4), pages 1009-1039, June.
    11. Balsalobre-Lorente, Daniel & Driha, Oana M. & Sinha, Avik, 2020. "The dynamic effects of globalization process in analysing N-shaped tourism led growth hypothesis," MPRA Paper 100078, University Library of Munich, Germany.
    12. Bernardina Algieri & Antonio à lvarez, 2023. "Assessing the ability of regions to attract foreign tourists: The case of Italy," Tourism Economics, , vol. 29(3), pages 788-811, May.
    13. Lingaraj MALLICK & Ummalla MALLESH & Jaganath BEHERA, 2016. "Does tourism affect economic growth in Indian states? Evidence from panel ARDL model," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(606), S), pages 183-194, Spring.
    14. Konstantakis, Konstantinos N. & Soklis, George & Michaelides, Panayotis G., 2017. "Tourism expenditures and crisis transmission: A general equilibrium GVAR analysis with network theory," Annals of Tourism Research, Elsevier, vol. 66(C), pages 74-94.
    15. Rafał Kaźmierczak & Agnieszka Szczepańska & Cezary Kowalczyk & Grzegorz Grunwald & Artur Janowski, 2021. "Using AR Technology in Tourism Based on the Example of Maritime Educational Trips—A Conceptual Model," Sustainability, MDPI, vol. 13(13), pages 1-22, June.
    16. Strike Mbulawa & Samuel Chingoiro, 2017. "Do Tourist ExpendituresMatter forGrowth in Botswana? A Vector Auto Regression Approach," Academica Turistica - Tourism and Innovation Journal, University of Primorska Press, vol. 10(1), pages 91-101.
    17. Antonakakis, Nikolaos & Dragouni, Mina & Filis, George, 2015. "How strong is the linkage between tourism and economic growth in Europe?," Economic Modelling, Elsevier, vol. 44(C), pages 142-155.
    18. Antonakakis, Nikolaos & Dragouni, Mina & Filis, George, 2013. "Time-Varying Interdependencies of Tourism and Economic Growth: Evidence from European Countries," MPRA Paper 48715, University Library of Munich, Germany.
    19. Muhammad Tariq Majeed & Maria Mazhar, 2021. "Managing economic growth through tourism: Does volatility of tourism matter?," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 48(1), pages 49-69, March.
    20. Tina T He & Wilson XB Li, 2021. "Revisiting tourism’s additional impact on income," Tourism Economics, , vol. 27(1), pages 149-167, February.

    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:gam:jsusta:v:12:y:2020:i:20:p:8707-:d:431992. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.