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The impact of relative prices on tourism demand for Mauritius: An empirical analysis

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  • Boopen Seetanah
  • Raja Sannassee
  • Sawkut Rojid

Abstract

The present study assesses the impact of relative prices on tourism flows in Mauritius. To account for dynamism in tourism flows modelling, a dynamic time series analysis - namely the vector autoregressive model - is employed. The results show that relative price measures have a long-run impact on international tourism flows, indicating that tourists are sensitive to price levels. The relative average cost in the different competing destinations is also reported to be positive and significant, indicating that the impact of relative price changes in foreign destinations competing with Mauritius tourism matters; thus indicating a certain degree of substitutability between Mauritian and its regional competitors' tourism. Tourism infrastructure, income in country of origin and the island's level of development are confirmed to be key factors in the tourist selection decision. Finally, overall, short-run estimates confirm the above results.

Suggested Citation

  • Boopen Seetanah & Raja Sannassee & Sawkut Rojid, 2015. "The impact of relative prices on tourism demand for Mauritius: An empirical analysis," Development Southern Africa, Taylor & Francis Journals, vol. 32(3), pages 363-376, May.
    • Handle: RePEc:taf:deveza:v:32:y:2015:i:3:p:363-376
    DOI: 10.1080/0376835X.2015.1010717
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    Cited by:

    1. Armand Viljoen & Andrea Saayman & Melville Saayman, 2019. "Determinants influencing inbound arrivals to Africa," Tourism Economics, , vol. 25(6), pages 856-883, September.
    2. Muhammad Amin Hasan & Mr. Abdullah & Muhammad Arsalan Hashmi & Ali Sajid, 2022. "International Remittances and International Tourism Development in South Asia: The Moderating Role of Political Stability," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 177-187.
    3. Manuel González-Gómez, 2022. "European outbound tourism expansion on the islands of Cape Verde," Tourism Economics, , vol. 28(4), pages 1129-1150, June.
    4. Malaj, Emi & Malaj, Visar, 2023. "Determinants of international tourism: Empirical evidence from three Mediterranean countries," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(2), pages 66-72.
    5. Ben-David, Nissim & Teitler-Regev, Sharon & Tillman, Avi, 2016. "What is the optimal number of hotel rooms: Spain as a case study," Tourism Management, Elsevier, vol. 57(C), pages 84-90.
    6. Boyang Xu & Daxin Dong, 2020. "Evaluating the Impact of Air Pollution on China’s Inbound Tourism: A Gravity Model Approach," Sustainability, MDPI, vol. 12(4), pages 1-21, February.

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