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Tourist arrivals versus tourist expenditures in modelling tourism demand

Author

Listed:
  • Jaume Rosselló-Nadal

    (16745Universitat de les Illes Balears, Spain; Griffith University, Australia; University of California, USA)

  • Jianan HE

    (16745Universitat de les Illes Balears, Spain)

Abstract

In empirical research, aggregate tourist arrivals and tourist expenditures are often indistinctly used as measures of tourism demand, depending on the aim of the analysis or, simply, on the availability of data. However, when a literature review was conducted, we found differences in the estimated elasticities, accordingly to the measure that was used. This article investigates these two measures, exploring the theoretical link between them in the context of tourism demand modelling at a destination level. Having established the theoretical connection between the two variables with implications on the estimated elasticities, we estimate tourism demand models using international arrivals and tourist expenditures for 191 countries from 1998 to 2016, providing evidence for the theoretical connection. Our results show that when both tourist demand measures are used, the estimated elasticities may differ.

Suggested Citation

  • Jaume Rosselló-Nadal & Jianan HE, 2020. "Tourist arrivals versus tourist expenditures in modelling tourism demand," Tourism Economics, , vol. 26(8), pages 1311-1326, December.
    • Handle: RePEc:sae:toueco:v:26:y:2020:i:8:p:1311-1326
    DOI: 10.1177/1354816619867810
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    References listed on IDEAS

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    7. Pablo Juan Cárdenas-García & Juan Gabriel Brida & Verónica Segarra, 2024. "A qualitative dynamic analysis of the relationship between tourism and human development," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-14, December.

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