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The determinants of Italian domestic tourism: A panel data analysis

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  • Massidda, Carla
  • Etzo, Ivan

Abstract

In this study, a GMM panel data estimation is used to investigate the main determinants of Italian domestic tourism demand as measured by regional bilateral tourism flows. The analysis is developed both at aggregate level and for the two traditional macro-areas of the country, namely Centre-North and South. For the whole nation, the importance of traditional economic variables in determining domestic tourism flows is confirmed. However tourist actual choices appear also to be influenced by past experiences and by regional differences in the quality of the wider environment. Additionally it appears that, for Italian tourists, domestic and international destinations behave as substitutable goods. The sub-sample analysis highlights some interesting differences between macro-areas. In particular, southern tourists appear more responsive to income variations, and less sensitive to prices differentials than their northern counterparts. Moreover, the degree of competition between domestic and outbound trips is higher in the South. Finally, southern tourists seem to be more influenced by environmental attributes while northern tourists are more sensitive to cultural activities.

Suggested Citation

  • Massidda, Carla & Etzo, Ivan, 2012. "The determinants of Italian domestic tourism: A panel data analysis," Tourism Management, Elsevier, vol. 33(3), pages 603-610.
    • Handle: RePEc:eee:touman:v:33:y:2012:i:3:p:603-610
    DOI: 10.1016/j.tourman.2011.06.017
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    Keywords

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    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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