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Macroeconomic Determinants of Tourism Demand Toward Emerging Markets

Author

Listed:
  • Burak Darici

    (Bandirma Onyedi Eylul University Faculty of Economics and Administrative Sciences Department of Economics Balikesir Turkiye)

  • Ahmet Aydin

    (Bandirma Onyedi Eylul University Faculty of Economics and Administrative Sciences Department of Economics Balikesir Turkiye)

  • Fatih Ayhan

    (Bandirma Onyedi Eylul University Faculty of Economics and Administrative Sciences Department of Economics Balikesir Turkiye)

  • Merve Altaylar

    (Koc University Data Science Istanbul Turkiye)

Abstract

This research provides valuable insights into the intricate dynamics influencing tourism demand in Turkey. By delving into the relationships between transportation costs tourists’ income levels prices the COVID-19 pandemic and exchange rates the study sheds light on the multifaceted nature of the tourism industry. The findings underscore the significance of various factors in shaping the tourism demand. Transportation costs and exchange rates are identified as critical determinants exerting adverse effects on tourism demand. Higher transportation costs and unfavorable exchange rates can deter potential tourists However income and prices emerged as positive influencers of tourism demand suggesting that higher incomes and favorable price levels can stimulate tourist activity. The study’s investigation of causal relationships through advanced statistical techniques revealed valuable insights. The unidirectional causality from transportation costs and income to tourism demand highlighted the pivotal role of these factors in driving tourist behavior. Additionally the causal relationship between prices and the exchange rate signifies the interplay between economic conditions and pricing strategies in shaping tourism demand. Overall this research provides a deeper understanding of the complex dynamics in the Turkish tourism market offering valuable insights for industry stakeholders and policymakers alike.

Suggested Citation

  • 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.
    • Handle: RePEc:ist:journl:v:73:y:2023:i:2:p:837-864
    DOI: 10.26650/ISTJECON2023-1296548
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    References listed on IDEAS

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    More about this item

    Keywords

    Tourism demand Price levels Exchange rate Income Transportation costs Panel data Poisson-Negative binomial regression Panel causality JEL Classification : C13 C33 L83 Z30;

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Z30 - Other Special Topics - - Tourism Economics - - - General

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