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What Attracts Tourists to Paradise?

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  • Ms. Evridiki Tsounta

Abstract

This paper investigates the determinants of tourism demand in the Eastern Caribbean Currency Union. We estimate the demand function in a panel setting using annual data from 1979 to 2005. Results show that tourism arrivals are significantly affected by economic developments in the source countries, while price considerations and external shocks (such as hurricanes and wars) are also important. Supply factors, such as developments in foreign direct investment and the number of airlines servicing a destination, are also found to be significant determinants of tourism demand.

Suggested Citation

  • Ms. Evridiki Tsounta, 2008. "What Attracts Tourists to Paradise?," IMF Working Papers 2008/277, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2008/277
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    Cited by:

    1. Ms. Nicole Laframboise & Miss Nkunde Mwase & Mr. Joonkyu Park & Yingke Zhou, 2014. "Revisiting Tourism Flows to the Caribbean: What is Driving Arrivals?," IMF Working Papers 2014/229, International Monetary Fund.
    2. Mr. Sebastian Acevedo Mejia & Lu Han & Miss Marie S Kim & Ms. Nicole Laframboise, 2016. "Flying to Paradise: The Role of Airlift in the Caribbean Tourism Industry," IMF Working Papers 2016/033, International Monetary Fund.
    3. Hatab, Assem Abu & Nsabimana, Aimable, 2016. "A Dynamic Analysis of Egyptian Orange Exports to Russia: A Co-integration Analysis," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 17(2), June.
    4. , & Ismail, Normaz Wana & Kaliappan, Shivee, 2013. "Determinants of International Tourism in Malaysia: Evidence from Gravity Model," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 47(1), pages 131-138.

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    Keywords

    WP; tourism sector; demand;
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