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Exchange Rate Regimes and Tourism

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  • María Santana-Gallego

    (Dpto Análisis Económico, Facultad de Ciencias Económicas y Empresariales, University of La Laguna, Campus de Guajara, 38071 La Laguna-Tenerife, Spain)

  • Francisco J. Ledesma-Rodríguez

    (Dpto Análisis Económico, Facultad de Ciencias Económicas y Empresariales, University of La Laguna, Campus de Guajara, 38071 La Laguna-Tenerife, Spain)

  • Jorge V. Pérez-Rodríguez

    (Dpto de Métodos Cuantitativos, Facultad de Ciencias Económicas, University of Las Palmas de Gran Canaria, Campus de Tafira, Tafira Baja, 35017 Las Palmas, Spain)

Abstract

The main objective of this paper is to analyse the effect of exchange rate arrangements on international tourism. The ambiguity in the literature about the effect of exchange rate volatility contrasts with the magnitude of the impact of a common currency on trade. The authors apply panel data techniques to analyse the relevance of a common currency to tourism, finding that it is a major factor in the determination of tourist arrivals. They also analyse the impact of several de facto exchange rate arrangements on tourism, finding that less flexible exchange rates promote tourism.

Suggested Citation

  • María Santana-Gallego & Francisco J. Ledesma-Rodríguez & Jorge V. Pérez-Rodríguez, 2010. "Exchange Rate Regimes and Tourism," Tourism Economics, , vol. 16(1), pages 25-43, March.
    • Handle: RePEc:sae:toueco:v:16:y:2010:i:1:p:25-43
    DOI: 10.5367/000000010790872015
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    References listed on IDEAS

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