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Inbound International Tourism To The United States: A Panel Data Analysis

Author

Listed:
  • E. M. Ekanayake
  • Mihalis Halkides
  • John R. Ledgerwood

Abstract

The objective of this paper is to analyze the demand for tourist arrivals to the United States, using the panel cointegration technique. The study attempts to identify and measure the impact of the main determinants of inbound international tourism flows to the United States. The study uses annual data from 1986 to 2011 for tourist arrivals from 50 major countries of tourist origin. The specified model includes several country-specific determinants. The panel unit root tests indicate all the variables are integrated of order one. The panel cointegration tests show that all seven test statistics reject the null hypothesis of no cointegration at the 1% significance level, indicating that the five variables are cointegrated. The results suggest that tourism demand to the United States must be considered as a luxury good and is highly dependent on the evolution of relative prices and cost of travel between origin and destination country. The results also show that tourism demand is elastic with respect to income but inelastic with respect to tourism price, real exchange rate, and travel costs.

Suggested Citation

  • E. M. Ekanayake & Mihalis Halkides & John R. Ledgerwood, 2012. "Inbound International Tourism To The United States: A Panel Data Analysis," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 5(3), pages 15-27.
    • Handle: RePEc:ibf:ijmmre:v:5:y:2012:i:3:p:15-27
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    References listed on IDEAS

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    Cited by:

    1. Puah, Chin-Hong & Huan, Suk-Hie & Thien, Fung-Thai, 2018. "Determinants of Chinese demand for tourism in Malaysia," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 14(3), May.
    2. Tekleselassie, Tsegay Gebrekidan, 2016. "Three essays on the impact of institutions and policies on socio-economic outcomes," Economics PhD Theses 1316, Department of Economics, University of Sussex Business School.
    3. Serdar Ongan & Cem Işik & Dilek Özdemir, 2017. "The Effects of Real Exchange Rates and Income on International Tourism Demand for the USA from Some European Union Countries," Economies, MDPI, vol. 5(4), pages 1-11, December.

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    More about this item

    Keywords

    Tourism demand; Panel data; Panel cointegration; United States;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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