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Revisiting the Convergence Hypothesis of Tourism Markets: Evidence from South Africa

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  • Sakiru Adebola Solarin

    (The author is at the Multimedia University Malaysia. Address: Room 5012, Faculty of Business, Multimedia University Malaysia, 75450, Melaka, Malaysia, email: sasolarin@mmu.edu.my)

Abstract

The purpose of this article is to examine the convergence hypothesis in South Africa’s tourism markets over the period January 2000–December 2011. To check the existence of convergence, the study follows existing papers by applying a unit root test on the difference series and a cointegration test on the original series of visitor arrivals. Premised on geographical dimension, we further investigate cluster-based convergence within African and overseas source markets in South Africa. The results provide evidence for long-run convergence in tourism markets. Furthermore, the findings of cluster-based convergence provide greater support for the convergence within African and overseas source markets, respectively. These findings imply that previous policies aimed at boosting total visitor arrivals in South Africa have been successful, and maintaining such (or similar) strategies may continue to enhance international visitor arrivals in the country. JEL Classification: L83, O47, O55

Suggested Citation

  • Sakiru Adebola Solarin, 2014. "Revisiting the Convergence Hypothesis of Tourism Markets: Evidence from South Africa," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(1), pages 77-92, February.
  • Handle: RePEc:sae:mareco:v:8:y:2014:i:1:p:77-92
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    File URL: http://mar.sagepub.com/content/8/1/77.abstract
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    Cited by:

    1. Sakiru Adebola Solarin, 2018. "Convergence hypothesis in tourism markets and activities in Taiwan," Tourism Economics, , vol. 24(8), pages 1037-1044, December.
    2. Lin, Zhibin & You, Kefei & Lau, Chi Keung & Demir, Ender, 2019. "Segmenting global tourism markets: A panel club convergence approach," Annals of Tourism Research, Elsevier, vol. 75(C), pages 165-185.
    3. Burcu Ozcan, 2014. "Do Tourism Markets Of Turkey Converge?," Proceedings of International Academic Conferences 0200630, International Institute of Social and Economic Sciences.
    4. Mérida, Adrián L. & Carmona, Mónica & Congregado, Emilio & Golpe, Antonio A., 2016. "Exploring the regional distribution of tourism and the extent to which there is convergence," Tourism Management, Elsevier, vol. 57(C), pages 225-233.

    More about this item

    Keywords

    Tourism Markets; Convergence Hypothesis; South Africa;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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