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UK Tourists, the Great Recession and Irish Tourism Policy

Listed author(s):
  • Niamh Callaghan

    (The Economic and Social Research Institute)

  • Richard S. J. Tol

    (University of Sussex, United Kingdom The Institute for Environmental Studies, Vrije Universiteit, Amsterdam Department of Spacial Economics, Vrije Universiteit, Amsterdam)

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 a pooled travel cost model 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 forgone tax revenue.

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File URL: http://www.esr.ie/vol44_1/05%20Callaghan%20PP%20_ESRI%20Vol%2044-1.pdf
File Function: First version,2013
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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 44 (2013)
Issue (Month): 1 ()
Pages: 103-116

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Handle: RePEc:eso:journl:v:44:y:2013:i:1:p:103-115
Contact details of provider: Web page: http://www.esr.ie

References listed on IDEAS
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  1. Graham, Anne, 2000. "Demand for leisure air travel and limits to growth," Journal of Air Transport Management, Elsevier, vol. 6(2), pages 109-118.
  2. 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.
  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. Panayiota Lyssiotou, 2000. "Dynamic analysis of British demand for tourism abroad," Empirical Economics, Springer, vol. 25(3), pages 421-436.
  5. 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.
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