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Estimating Demand Elasticities for Australia's International Outbound Tourism

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  • Neelu Seetaram

    (School of Tourism, Bournemouth University, Fern Barrow, Poole BH12 5BB, UK)

Abstract

In spite of the vast and growing literature on tourism demand, outbound tourism remains relatively under-researched. This paper highlights the usefulness of examining determinants of outbound tourism and develops a comprehensive dynamic demand model for international travel from Australia using the panel data cointegration technique. The data represent 47 destinations for the period 1991–2008. The aim is to compute robust demand elasticities. One of the contributions of the paper is that it demonstrates the role immigration plays in determining international tourist departures from Australia. The estimated short-run and long-run immigration elasticities are 0.2 and 0.6, respectively.

Suggested Citation

  • Neelu Seetaram, 2012. "Estimating Demand Elasticities for Australia's International Outbound Tourism," Tourism Economics, , vol. 18(5), pages 999-1017, October.
    • Handle: RePEc:sae:toueco:v:18:y:2012:i:5:p:999-1017
    DOI: 10.5367/te.2012.0161
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    References listed on IDEAS

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    Cited by:

    1. Jose I Castillo-Manzano & Mercedes Castro-Nuño & Lourdes Lopez-Valpuesta & à lvaro Zarzoso, 2021. "Quality versus quantity: An assessment of the impact of Michelin-starred restaurants on tourism in Spain," Tourism Economics, , vol. 27(5), pages 1166-1174, August.
    2. Massidda, Carla & Piras, Romano & Seetaram, Neelu, 2020. "A Microeconomics Analysis of the Per Diem Expenditure of British Travellers," Annals of Tourism Research, Elsevier, vol. 82(C).
    3. Nikeel Kumar & Ronald Ravinesh Kumar, 2020. "Relationship between ICT and international tourism demand: A study of major tourist destinations," Tourism Economics, , vol. 26(6), pages 908-925, September.
    4. Seetaram, Neelu & Forsyth, Peter & Dwyer, Larry, 2016. "Measuring price elasticities of demand for outbound tourism using competitiveness indices," Annals of Tourism Research, Elsevier, vol. 56(C), pages 65-79.
    5. Sylvain Petit & Neelu Seetaram, 2018. "Measuring the Effect of Revealed Cultural Preferences on Tourism Exports," Post-Print hal-02133249, HAL.
    6. Zhang, Yahua, 2015. "International arrivals to Australia: Determinants and the role of air transport policy," Journal of Air Transport Management, Elsevier, vol. 44, pages 21-24.
    7. Davide Provenzano, 2020. "The migration–tourism nexus in the EU28," Tourism Economics, , vol. 26(8), pages 1374-1393, December.
    8. David Tan & Kan Tsui, 2017. "Investigating causality in international air freight and business travel: The case of Australia," Urban Studies, Urban Studies Journal Limited, vol. 54(5), pages 1178-1193, April.
    9. Saayman, Andrea & Viljoen, Armand & Saayman, Melville, 2018. "Africa’s outbound tourism: An Almost Ideal Demand System perspective," Annals of Tourism Research, Elsevier, vol. 73(C), pages 141-158.
    10. Seetaram, Neelu & Petit, Sylvain, 2012. "Panel data analysis in Tourism Research," MPRA Paper 75086, University Library of Munich, Germany.
    11. Etzo, Ivan & Massidda, Carla & Piras, Romano, 2014. "Migration and outbound tourism: Evidence from Italy," Annals of Tourism Research, Elsevier, vol. 48(C), pages 235-249.
    12. Mehmet Balcilar & Sahar Aghazadeh & George N Ike, 2021. "Modelling the employment, income and price elasticities of outbound tourism demand in OECD countries," Tourism Economics, , vol. 27(5), pages 971-990, August.
    13. Athanasopoulos, George & Deng, Minfeng & Li, Gang & Song, Haiyan, 2014. "Modelling substitution between domestic and outbound tourism in Australia: A system-of-equations approach," Tourism Management, Elsevier, vol. 45(C), pages 159-170.
    14. Chia-Yu Yeh & Kang Ernest Liu, 2019. "Modeling Household Participation Decisions Between Domestic And International Trips By Semi-Nonparametric Regressions," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(01), pages 191-211, March.
    15. Balli, Faruk & Balli, Hatice O. & Jean Louis, Rosmy, 2016. "The impacts of immigrants and institutions on bilateral tourism flows," Tourism Management, Elsevier, vol. 52(C), pages 221-229.
    16. Carla Massidda & Ivan Etzo & Romano Piras, 2017. "The relationship between immigration and tourism firms," Tourism Economics, , vol. 23(8), pages 1537-1552, December.
    17. Wai Hong Kan Tsui & Faruk Balli, 2017. "International arrivals forecasting for Australian airports and the impact of tourism marketing expenditure," Tourism Economics, , vol. 23(2), pages 403-428, March.
    18. Shah Jahan Miah & Huy Quan Vu & John G. Gammack, 2019. "A Location Analytics Method for the Utilisation of Geotagged Photos in Travel Marketing Decision-Making," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 1-29, March.
    19. Gholipour, Hassan Fereidouni & Tajaddini, Reza & Al-mulali, Usama, 2014. "Does personal freedom influence outbound tourism?," Tourism Management, Elsevier, vol. 41(C), pages 19-25.

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