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Forecasting tourism demand with denoised neural networks

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  • Silva, Emmanuel Sirimal
  • Hassani, Hossein
  • Heravi, Saeed
  • Huang, Xu

Abstract

The automated Neural Network Autoregressive (NNAR) algorithm from the forecast package in R generates sub-optimal forecasts when faced with seasonal tourism demand data. We propose denoising as a means of improving the accuracy of NNAR forecasts via an application into forecasting monthly tourism demand for ten European countries. Initially, we fit NNAR models on both raw and denoised (with Singular Spectrum Analysis) tourism demand series, generate forecasts and compare the results. Thereafter, the denoised NNAR forecasts are also compared with parametric and nonparametric benchmark forecasting models. Contrary to the deseasonalising hypothesis, we find statistically significant evidence which supports the denoising hypothesis for improving the accuracy of NNAR forecasts. Thus, it is noise and not seasonality which hinders NNAR forecasting capabilities.

Suggested Citation

  • Silva, Emmanuel Sirimal & Hassani, Hossein & Heravi, Saeed & Huang, Xu, 2019. "Forecasting tourism demand with denoised neural networks," Annals of Tourism Research, Elsevier, vol. 74(C), pages 134-154.
    • Handle: RePEc:eee:anture:v:74:y:2019:i:c:p:134-154
    DOI: 10.1016/j.annals.2018.11.006
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    1. Hassani, Hossein & Rua, António & Silva, Emmanuel Sirimal & Thomakos, Dimitrios, 2019. "Monthly forecasting of GDP with mixed-frequency multivariate singular spectrum analysis," International Journal of Forecasting, Elsevier, vol. 35(4), pages 1263-1272.
    2. Xie, Gang & Qian, Yatong & Wang, Shouyang, 2020. "A decomposition-ensemble approach for tourism forecasting," Annals of Tourism Research, Elsevier, vol. 81(C).
    3. Guan, Bo & Silva, Emmanuel Sirimal & Hassani, Hossein & Heravi, Saeed, 2022. "Forecasting tourism growth with State-Dependent Models," Annals of Tourism Research, Elsevier, vol. 94(C).
    4. De Carlo, Manuela & Ferilli, Guido & d'Angella, Francesca & Buscema, Massimo, 2021. "Artificial intelligence to design collaborative strategy: An application to urban destinations," Journal of Business Research, Elsevier, vol. 129(C), pages 936-948.
    5. Jian-Wu Bi & Tian-Yu Han & Hui Li, 2022. "International tourism demand forecasting with machine learning models: The power of the number of lagged inputs," Tourism Economics, , vol. 28(3), pages 621-645, May.
    6. Gunter, Ulrich & Zekan, Bozana, 2021. "Forecasting air passenger numbers with a GVAR model," Annals of Tourism Research, Elsevier, vol. 89(C).
    7. Bi, Jian-Wu & Liu, Yang & Li, Hui, 2020. "Daily tourism volume forecasting for tourist attractions," Annals of Tourism Research, Elsevier, vol. 83(C).
    8. Sergei Mikhailov & Alexey Kashevnik, 2020. "Tourist Behaviour Analysis Based on Digital Pattern of Life—An Approach and Case Study," Future Internet, MDPI, vol. 12(10), pages 1-16, September.
    9. Zhang, Yishuo & Li, Gang & Muskat, Birgit & Law, Rob & Yang, Yating, 2020. "Group pooling for deep tourism demand forecasting," Annals of Tourism Research, Elsevier, vol. 82(C).
    10. Kulshrestha, Anurag & Krishnaswamy, Venkataraghavan & Sharma, Mayank, 2020. "Bayesian BILSTM approach for tourism demand forecasting," Annals of Tourism Research, Elsevier, vol. 83(C).
    11. Hatice Öncel Çekim & Ahmet Koyuncu, 2022. "The Impact of Google Trends on the Tourist Arrivals: A Case of Antalya Tourism," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 10(1), pages 1-14, June.
    12. Zhang, Yishuo & Li, Gang & Muskat, Birgit & Vu, Huy Quan & Law, Rob, 2021. "Predictivity of tourism demand data," Annals of Tourism Research, Elsevier, vol. 89(C).
    13. Jian-Wu Bi & Tian-Yu Han & Yanbo Yao, 2024. "Collaborative forecasting of tourism demand for multiple tourist attractions with spatial dependence: A combined deep learning model," Tourism Economics, , vol. 30(2), pages 361-388, March.
    14. Bi, Jian-Wu & Li, Hui & Fan, Zhi-Ping, 2021. "Tourism demand forecasting with time series imaging: A deep learning model," Annals of Tourism Research, Elsevier, vol. 90(C).

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