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Uneven domestic tourism demand in times of pandemic

Author

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  • Martin Falk
  • Eva Hagsten
  • Xiang Lin

Abstract

This study investigates the short-run impact of the COVID-19 pandemic on the number of domestic overnight stays at the regional level in the summer season 2020. Official data for 65 regions in four countries are used for the analysis (Austria, the Czech Republic, Germany and Switzerland). Dynamic panel data models are employed to estimate a tourism demand equation (real GDP and price fluctuations) augmented by average temperatures. Estimation results reveal that domestic overnight stays evolve unevenly in the first summer after the outbreak of the COVID-19 pandemic. The short-run effects show that the number of domestic overnight stays in densely populated regions decreases by 27% in July as well as in August 2020, in comparison with the same months in previous years, ceteris paribus. To the contrary, there is a surge of 27 and 10%, respectively, for sparsely populated areas in the same months. JEL: Z3, R11 and R12.

Suggested Citation

  • Martin Falk & Eva Hagsten & Xiang Lin, 2023. "Uneven domestic tourism demand in times of pandemic," Tourism Economics, , vol. 29(3), pages 596-611, May.
    • Handle: RePEc:sae:toueco:v:29:y:2023:i:3:p:596-611
    DOI: 10.1177/13548166211059409
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    More about this item

    Keywords

    Regional tourism demand; domestic tourism and travel demand; dynamic panel data methods; population density;
    All these keywords.

    JEL classification:

    • Z3 - Other Special Topics - - Tourism Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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