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UK Tourists, The Great Recession and Irish Tourism Policy

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  • Callaghan, Niamh
  • Tol, Richard S. J.

Abstract

Inbound tourism to Ireland fell sharply in 2009 and 2010. Visits to Ireland from the UK, the dominant country of origin of visitors to Ireland, did not fall faster than UK visits elsewhere. We use micro-data for UK travellers to estimate price elasticities of tourism demand for various market segments. The proposed reduction in the travel tax, and the reduction in the VAT rate for "tourism goods and services" would lead to a modest increase in visitor numbers and expenditure. However, the increase in expenditure is small compared to the foregone tax revenue.

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Bibliographic Info

Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP412.

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Date of creation: Oct 2011
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Handle: RePEc:esr:wpaper:wp412

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Keywords: Policy/recession/Tourism/Ireland/taxes;

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  1. Sarath Divisekera & Jim Deegan, 2010. "An analysis of consumption behaviour of foreign tourists in Ireland," Applied Economics, Taylor & Francis Journals, vol. 42(13), pages 1681-1697.
  2. Panayiota Lyssiotou, 2000. "Dynamic analysis of British demand for tourism abroad," Empirical Economics, Springer, vol. 25(3), pages 421-436.
  3. Njegovan, Nenad, 2006. "Elasticities of demand for leisure air travel: A system modelling approach," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 33-39.
  4. Grubb, Howard & Mason, Alexina, 2001. "Long lead-time forecasting of UK air passengers by Holt-Winters methods with damped trend," International Journal of Forecasting, Elsevier, vol. 17(1), pages 71-82.
  5. Graham, Anne, 2000. "Demand for leisure air travel and limits to growth," Journal of Air Transport Management, Elsevier, vol. 6(2), pages 109-118.
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