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Causality in direct air services and tourism demand

Author

Listed:
  • Tay-Ryang Koo
  • Christine Lim
  • Frédéric Dobruszkes

Abstract

Unlike income or relative prices, air transport attributes and tourism demand on a given route can be endogenous. Using instrumental variables, this study attempted to account for the circular causality in estimating the effect of direct air service on tourism demand. Although we found evidence of endogeneity, the nature of the circular causation is context-specific; while direct air service can be regarded as an exogenous variable in one direction, it can have an endogenous relationship on the other. Findings emphasise the need to explicate information about the network nature of transportation and its endogenous relations with tourism.

Suggested Citation

  • Tay-Ryang Koo & Christine Lim & Frédéric Dobruszkes, 2017. "Causality in direct air services and tourism demand," ULB Institutional Repository 2013/259047, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/259047
    Note: SCOPUS: ar.j
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    Citations

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    Cited by:

    1. Tsui, Wai Hong Kan & Fu, Xiaowen & Yin, Chuanzhong & Zhang, Huaxin, 2021. "Hong Kong's aviation and tourism growth - An empirical investigation," Journal of Air Transport Management, Elsevier, vol. 93(C).
    2. Defilippi, Enzo & Gutierrez Andrade, Jesús, 2021. "More flights seats, more tourists?: evidence from Perú ," Working Papers 21-01, Centro de Investigación, Universidad del Pacífico.
    3. Doerr, Luisa & Dorn, Florian & Gaebler, Stefanie & Potrafke, Niklas, 2020. "How new airport infrastructure promotes tourism: evidence from a synthetic control approach in German regions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(10), pages 1402-1412.
    4. Bulatovic, Iva & Papatheodorou, Andreas, 2023. "Civil aviation and tourism demand in Montenegro: A panel data approach," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(1), pages 25-36.
    5. Mengmeng Qiang & Manhong Shen & Huiming Xie, 2019. "Cultural diffusion and international inbound tourism: Evidence from China," Tourism Economics, , vol. 25(6), pages 884-903, September.
    6. Spasojevic, Bojana & Lohmann, Gui & Scott, Noel, 2019. "Leadership and governance in air route development," Annals of Tourism Research, Elsevier, vol. 78(C), pages 1-1.
    7. Jin, Yu & Xi, Haonan & Wang, Xuhui & Ren, Xin & Yuan, Libin, 2022. "Evaluation of the Integration Policy in China: Does the Integration of Culture and Tourism Promote Tourism Development?," Annals of Tourism Research, Elsevier, vol. 97(C).
    8. Koo, Tay T.R. & Hossein Rashidi, Taha & Park, Jin-Woo & Wu, Cheng-Lung & Tseng, Wen-Chun, 2017. "The effect of enhanced international air access on the demand for peripheral tourism destinations: Evidence from air itinerary choice behaviour of Korean visitors to Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 116-129.
    9. Alderighi, Marco & Gaggero, Alberto A., 2019. "Flight availability and international tourism flows," Annals of Tourism Research, Elsevier, vol. 79(C).
    10. Bontemps, Christian & Martini, Gianmaria & Porta, Flavio, 2024. "The Effects of LCCs Subsidies on the Tourism Industry," TSE Working Papers 24-1540, Toulouse School of Economics (TSE).
    11. Koo, Tay T.R. & Lau, Pong-Lung, 2019. "Impact of aviation on spatial distribution of tourism: An experiment," Annals of Tourism Research, Elsevier, vol. 78(C), pages 1-1.
    12. Wang, Sen & Gao, Yi, 2021. "A literature review and citation analyses of air travel demand studies published between 2010 and 2020," Journal of Air Transport Management, Elsevier, vol. 97(C).
    13. Mehmet YAŞAR, 2024. "Investigating The Air Travel-Tourism Relationship Using Granger Causality Analysis: The Case Of Turkish Destinations," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 19(1), pages 301-316, April.
    14. Rockie U Kei Kuok & Tay T.R. Koo & Christine Lim, 2024. "Air transport capacity and tourism demand: A panel cointegration approach with cross-sectionally augmented autoregressive distributed lag (CS-ARDL) model," Tourism Economics, , vol. 30(3), pages 702-727, May.

    More about this item

    Keywords

    Air transport liberalization; Direct air services; Endogeneity; Instrumental variable; LIML estimator; Tourism demand;
    All these keywords.

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