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Determinants of Tourism Demand in the SADC Region

Author

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  • Johane Moilwa Motsatsi

    (Botswana Institute for Development Policy Analysis)

Abstract

This study estimates the determinants of tourism demand in Southern Africa Development Community (SADC) region using Generalised Least Squares (GLS) estimation procedure and panel data for the period 1997-2015. The results obtained suggest that the elasticities of tourism demand with respect to real capital investment on the tourism sector, real exchange rate, real gross domestic product (GDP), proportion of population with access to internet and global peace index are positive, while that with respect to inflation rate is negative. These results imply that for any country in the SADC region to attract more arrivals of tourists: it should invest significantly on the tourism sector, in terms of upgrading tourism infrastructure; implement exchange rate policy that is favourable to international tourists; and promote a reputation of being a peaceful country. Hence tourism has strong linkages with other economic sectors, it is an ideal prospect for economic diversification.

Suggested Citation

  • Johane Moilwa Motsatsi, 2018. "Determinants of Tourism Demand in the SADC Region," Working Papers 53, Botswana Institute for Development Policy Analysis.
    • Handle: RePEc:bid:wpaper:53
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    File URL: http://knowledge.bidpa.bw:8080/xmlui/handle/123456789/95
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    Cited by:

    1. Tshepiso Gaetsewe, 2020. "Characteristics of Firms in Botswana's Informal Economy," Working Papers 74, Botswana Institute for Development Policy Analysis.
    2. Tebogo B. Seleka, 2020. "Targetting Effectiveness of Social Transfer Programs in Botswana:Means-tested versus Categorical and Self-selected instruments," Working Papers 72, Botswana Institute for Development Policy Analysis.

    More about this item

    Keywords

    Tourism demand; SADC region; Diversification;
    All these keywords.

    JEL classification:

    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

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