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Demand elasticity estimates for New Zealand tourism

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  • Schiff, Aaron
  • Becken, Susanne

Abstract

Demand elasticities for New Zealand tourism are estimated for 16 different international visitor segments. Segments are differentiated by origin, purpose of visit, and travel style. Elasticities for both international visitor arrivals and on-the-ground expenditure per arrival are estimated for each segment using time-series data. In general, on-the-ground consumption per arrival is more price sensitive than number of arrivals, and Asian market segments are found to be more price sensitive, both in terms of arrivals and on-the-ground expenditure, compared to international visitors from other regions. An application of the results is presented giving the total effect of exchange rate changes on expenditure by international visitors in New Zealand, and management implications are discussed.

Suggested Citation

  • Schiff, Aaron & Becken, Susanne, 2011. "Demand elasticity estimates for New Zealand tourism," Tourism Management, Elsevier, vol. 32(3), pages 564-575.
    • Handle: RePEc:eee:touman:v:32:y:2011:i:3:p:564-575
    DOI: 10.1016/j.tourman.2010.05.004
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