Determinants of Tourism for “Sun and Sea’ Cyprus
AbstractTourism is an essential contributor of economic growth, social and cultural development. Cyprus is now an established tourist destination, which, however, is passing through a slowdown phase. The determinants of tourism have been extensively examined for other countries, but the literature regarding Cyprus is very scarce. This paper examines the factors that affect tourism in Cyprus for the period 1995-2010, using time series regression analysis. Tourism is represented by tourist arrivals and tourism expenditure, while the predictors are relative prices, the Gross Domestic Product (GDP) of Cyprus and the income of the main countries that send tourists to Cyprus. The results show that tourism expenditure is significantly affected by the GDP of Cyprus and the relative prices between Cyprus and its main competitor, Greece, while tourist arrivals are additionally affected by the level of income of the origin countries. Increased competition, high operational costs, standardization of touristic product (sun and sea), as well as the international political instability and global financial crisis, which have raised unemployment and reduced tourists’ disposable income, appear to influence tourism in Cyprus. These findings are discussed, in combination with the corresponding low or high rankings of Cyprus in various pillars of travel and tourism competitiveness.
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Bibliographic InfoArticle provided by European Research Studies Journal in its journal European Research Studies Journal.
Volume (Year): XV (2012)
Issue (Month): 3 ()
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Tourist Arrivals; Tourism Expenditure; Travel and Tourism Competitiveness Index; Relative Prices; Global Financial Crisis;
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
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- A. �zlem �nder & Aykan Candemir & Neşe Kumral, 2009. "An Empirical Analysis of the Determinants of International Tourism Demand: The Case of Izmir," European Planning Studies, Taylor & Francis Journals, vol. 17(10), pages 1525-1533, April.
- Sofronis Clerides & Nicoletta Pashourtidou, 2007. "Tourism in Cyprus: Recent Trends and Lessons from the Tourist Satisfaction Survey," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 1(2), pages 51-72, December.
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