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Determinants of Inbound Tourism to South Africa

Author

Listed:
  • Andrea Saayman

    (School of Economics, North-West University, Potchefstroom Campus, Private Bag X6001, Potchefstroom 2521, South Africa)

  • Melville Saayman

    (Institute for Tourism and Leisure Studies, North-West University, Potchefstroom Campus, Private Bag X6001, Potchefstroom 2521, South Africa)

Abstract

South Africa has experienced a significant increase in tourist arrivals over the past ten years. The challenge is to sustain this growth and therefore it is important to understand the factors that influence inbound tourism to South Africa. The purpose of this article is to identify the various determinants of inbound tourism to South Africa from different source markets (categorized in continents). Time series quarterly data from 1993 to 2004 is used in the analysis of tourist arrivals. Cointegration analysis in a multivariate framework is used and the authors find that income, relative prices and travel cost are strong determinants of tourist arrivals (as with other destinations). They also find that climate and capacity play significant roles.

Suggested Citation

  • Andrea Saayman & Melville Saayman, 2008. "Determinants of Inbound Tourism to South Africa," Tourism Economics, , vol. 14(1), pages 81-96, March.
    • Handle: RePEc:sae:toueco:v:14:y:2008:i:1:p:81-96
    DOI: 10.5367/000000008783554893
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    References listed on IDEAS

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    1. Ronald MacDonald, 2002. "Modelling the Long–run Real Effective Exchange Rate of the New Zealand Dollar," Australian Economic Papers, Wiley Blackwell, vol. 41(4), pages 519-537, December.
    2. Willem A. Naudé & Andrea Saayman, 2005. "Determinants of Tourist Arrivals in Africa: A Panel Data Regression Analysis," Tourism Economics, , vol. 11(3), pages 365-391, September.
    3. Maria M. De Mello & Natércia Fortuna, 2005. "Testing Alternative Dynamic Systems for Modelling Tourism Demand," CEF.UP Working Papers 0501, Universidade do Porto, Faculdade de Economia do Porto.
    4. Bernardina Algieri, 2006. "An Econometric Estimation of the Demand for Tourism: The Case of Russia," Tourism Economics, , vol. 12(1), pages 5-20, March.
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