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On the impact of the euro on international tourism

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Abstract

This paper studies the effect of the inception of the euro on the international tourism of the Eurozone. To do this, a gravity model is estimated using two different samples, the OECD countries and the European OECD countries, over the period 1995-2008. The results suggest a noticeable impact of the euro on tourism, bigger than estimated in previous research. However, evidence of tourism diversion is found. The estimates also indicate a greater impact of the introduction of coins and notes in 2002 than the effect of the irrevocable fixing of conversion rates in 1999. Furthermore, the results show that the euro effect on tourism could have been anticipated during earlier stages of the EMU.

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Paper provided by Universitat de les Illes Balears, Departament d'Economía Aplicada in its series DEA Working Papers with number 50.

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Date of creation: 2012
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Handle: RePEc:ubi:deawps:50

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Keywords: currency unions; euro effect; panel data; international tourist arrivals;

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  1. European tourism and the Euro
    by Economic Logician in Economic Logic on 2012-12-27 15:05:00

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