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Tourist arrivals versus tourist expenditures in modelling tourism demand

Author

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  • Jaume Rosselló-Nadal

    (16745Universitat de les Illes Balears, Spain; Griffith University, Australia; University of California, USA)

  • Jianan HE

    (16745Universitat de les Illes Balears, Spain)

Abstract

In empirical research, aggregate tourist arrivals and tourist expenditures are often indistinctly used as measures of tourism demand, depending on the aim of the analysis or, simply, on the availability of data. However, when a literature review was conducted, we found differences in the estimated elasticities, accordingly to the measure that was used. This article investigates these two measures, exploring the theoretical link between them in the context of tourism demand modelling at a destination level. Having established the theoretical connection between the two variables with implications on the estimated elasticities, we estimate tourism demand models using international arrivals and tourist expenditures for 191 countries from 1998 to 2016, providing evidence for the theoretical connection. Our results show that when both tourist demand measures are used, the estimated elasticities may differ.

Suggested Citation

  • Jaume Rosselló-Nadal & Jianan HE, 2020. "Tourist arrivals versus tourist expenditures in modelling tourism demand," Tourism Economics, , vol. 26(8), pages 1311-1326, December.
    • Handle: RePEc:sae:toueco:v:26:y:2020:i:8:p:1311-1326
    DOI: 10.1177/1354816619867810
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    References listed on IDEAS

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    2. Burak Darici & Ahmet Aydin & Fatih Ayhan & Merve Altaylar, 2023. "Macroeconomic Determinants of Tourism Demand Toward Emerging Markets," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 73(73-2), pages 837-864, December.
    3. Simplice A. Asongu & Mushfiqur Rahman & Richard Adu-Gyamfi & Raufhon Salahodjaev, 2022. "Tourism management synergies in Sub-Saharan Africa," Working Papers 22/059, European Xtramile Centre of African Studies (EXCAS).
    4. Mauri, Chiara & Nava, Consuelo R., 2021. "Do tourists experience boredom in mountain destinations?," Annals of Tourism Research, Elsevier, vol. 89(C).

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