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Tourist Spending Dynamics in the Algarve: A Cross-Sectional Analysis

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  • Jaime Serra

    (Interdisciplinary Centre for History, Culture and Societies (CIDEHUS.UE), and School of Social Sciences, Universidade de Évora, Largo dos Colegiais 2, 7004-516 Évora, Portugal)

  • Antónia Correia

    (Center for Advanced Studies in Management and Economics (CEFAGE-UE), and Faculty of Economics, Universidade do Algarve, Campus das Gambelas, 8005-139 Faro, Portugal)

  • Paulo M.M. Rodrigues

    (Banco de Portugal, Nova School of Business and Economics, Universidade Nova de Lisboa, Campus de Campolide, 1099-032 Campolide, Lisbon, Portugal)

Abstract

This paper assesses the determinants of international tourists' spending in the Algarve from 2007 to 2010. Based on a sample of 15,542 observations a cross-section model was estimated using ordinary least squares. The results reveal that a combination of socio-demographic, behavioural and motivation variables explain the spending patterns of international tourists in the Algarve. Analysis of the data indicates that tourist motivations related to accommodation facilities, cultural and historical resources, gastronomy, hospitality, prices and sightseeing tours positively affect tourists' spending. Moreover, the findings provide evidence that, over the years, the most loyal markets in Algarve reveal changing patterns in their spending behaviour. Destination management authorities should be aware of this spending behaviour of second-generation sun and sand visitors and should formulate strategies accordingly. Policy and managerial recommendations are discussed.

Suggested Citation

  • Jaime Serra & Antónia Correia & Paulo M.M. Rodrigues, 2015. "Tourist Spending Dynamics in the Algarve: A Cross-Sectional Analysis," Tourism Economics, , vol. 21(3), pages 475-500, June.
    • Handle: RePEc:sae:toueco:v:21:y:2015:i:3:p:475-500
    DOI: 10.5367/te.2015.0482
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    References listed on IDEAS

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    1. Joaquín Alegre & Magdalena Cladera & Maria Sard, 2011. "Analysing the Influence of Tourist Motivations on Tourist Expenditure at a Sun-And-Sand Destination," Tourism Economics, , vol. 17(4), pages 813-832, August.
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    3. Carl H. Marcussen, 2011. "Determinants of Tourist Spending in Cross-Sectional Studies and at Danish Destinations," Tourism Economics, , vol. 17(4), pages 833-855, August.
    4. Brida, Juan Gabriel & Scuderi, Raffaele, 2012. "Determinants of tourist expenditure: a review of microeconometric models," MPRA Paper 38468, University Library of Munich, Germany.
    5. Thanos Mergoupis & Max Steuer, 2003. "Holiday taking and income," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 269-284.
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    3. Usamah F Alfarhan & Khaldoon Nusair & Fevzi Okumus & SR Nikhashemi, 2024. "Identifying structural asymmetries by jointly estimating tourism expenditure intensity and extensity," Tourism Economics, , vol. 30(5), pages 1281-1305, August.

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