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Effect of low-cost airlines on tourism in Spain. A dynamic panel data model


  • Rey, Belén
  • Myro, Rafael L.
  • Galera, Asun


This article estimates the impact of low-cost airlines on Spanish tourism during the first decade of the 21st century looking tourist traffic from the principal EU-15 member states using a dynamic panel data. The expansion in low-cost airline activity has had significant, positive direct and indirect effects on the Spanish economy. The study also looks at some of the key elasticities of demand that have influenced this.

Suggested Citation

  • Rey, Belén & Myro, Rafael L. & Galera, Asun, 2011. "Effect of low-cost airlines on tourism in Spain. A dynamic panel data model," Journal of Air Transport Management, Elsevier, vol. 17(3), pages 163-167.
  • Handle: RePEc:eee:jaitra:v:17:y:2011:i:3:p:163-167
    DOI: 10.1016/j.jairtraman.2010.12.004

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    References listed on IDEAS

    1. Eugeni Aguiló & Belen Rey & Jaume Rosselló & Catalina M. Torres, 2007. "The Impact of the Post-Liberalisation Growth of LCCs on the Tourism Trends in Spain," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 39-60, January-F.
    2. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
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    Cited by:

    1. Albalate, Daniel & Fageda, Xavier, 2016. "High speed rail and tourism: Empirical evidence from Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 174-185.
    2. repec:eee:touman:v:61:y:2017:i:c:p:465-471 is not listed on IDEAS
    3. Gomez, Juan & Vassallo, José Manuel, 2015. "Evolution over time of heavy vehicle volume in toll roads: A dynamic panel data to identify key explanatory variables in Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 74(C), pages 282-297.
    4. Tchouamou Njoya, Eric, 2013. "Air Transport and Destination Performance – A case study of three African countries (Ethiopia, Kenya and South Africa)," MPRA Paper 48017, University Library of Munich, Germany.
    5. repec:eee:anture:v:67:y:2017:i:c:p:67-77 is not listed on IDEAS
    6. Daniel Albalate & Javier Campos & Juan Luis Jiménez, 2015. "“Tourism and high speed rail in Spain: Does the AVE increase local visitors?”," IREA Working Papers 201527, University of Barcelona, Research Institute of Applied Economics, revised Dec 2015.
    7. repec:eee:touman:v:57:y:2016:i:c:p:84-90 is not listed on IDEAS
    8. Juan Gomez & José Manuel Vassallo & Israel Herraiz, 2016. "Explaining light vehicle demand evolution in interurban toll roads: a dynamic panel data analysis in Spain," Transportation, Springer, vol. 43(4), pages 677-703, July.
    9. repec:eee:touman:v:43:y:2014:i:c:p:70-88 is not listed on IDEAS
    10. repec:eee:touman:v:59:y:2017:i:c:p:449-466 is not listed on IDEAS
    11. Zhang, Yahua & Findlay, Christopher, 2014. "Air transport policy and its impacts on passenger traffic and tourist flows," Journal of Air Transport Management, Elsevier, vol. 34(C), pages 42-48.
    12. repec:eee:spomar:v:21:y:2018:i:3:p:250-262 is not listed on IDEAS
    13. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.
    14. Dobruszkes, Frédéric & Givoni, Moshe & Vowles, Timothy, 2017. "Hello major airports, goodbye regional airports? Recent changes in European and US low-cost airline airport choice," Journal of Air Transport Management, Elsevier, vol. 59(C), pages 50-62.
    15. repec:eee:touman:v:60:y:2017:i:c:p:390-403 is not listed on IDEAS
    16. Pagliara, Francesca & La Pietra, Andrea & Gomez, Juan & Manuel Vassallo, José, 2015. "High Speed Rail and the tourism market: Evidence from the Madrid case study," Transport Policy, Elsevier, vol. 37(C), pages 187-194.
    17. Dudás, Gábor & Boros, Lajos & Pál, Viktor & Pernyész, Péter, 2016. "Analysis of the lowest airfares considering the different business models of airlines, the case of Budapest," MPRA Paper 74502, University Library of Munich, Germany.
    18. Daniel Albalate del sol, 2015. "Evaluating HSR availability on Tourism: Evidence from Spanish Provinces and Cities," ERSA conference papers ersa15p288, European Regional Science Association.
    19. Gramani, Maria Cristina N., 2011. "Impact of regional airline’s efficiency: a country-specific study over successive time periods," Insper Working Papers wpe_259, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
    20. Balli, Faruk & Civan, Abdulkadir & Uras, Oguz, 2015. "The impact of the Hizmet movement on Turkey's bilateral trade," Economic Modelling, Elsevier, vol. 45(C), pages 74-82.
    21. Bernardo, Valeria & Fageda, Xavier, 2017. "The effects of the Morocco-European Union open skies agreement: A difference-in-differences analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 24-41.
    22. Eugenio-Martin, Juan L. & Inchausti-Sintes, Federico, 2016. "Low-cost travel and tourism expenditures," Annals of Tourism Research, Elsevier, vol. 57(C), pages 140-159.
    23. Moreno, Luis & Ramon, Ana & Pedreño, Andrés, 2015. "The Development of Low-cost Airlines and Tourism as a Competitiveness Complementor: Effects, Evolution and Strategies," Journal of Spatial and Organizational Dynamics, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve, vol. 3(4), pages 262-274.
    24. Jenatabadi, Hashem Salarzadeh & Ismail, Noor Azina, 2014. "Application of structural equation modelling for estimating airline performance," Journal of Air Transport Management, Elsevier, vol. 40(C), pages 25-33.


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