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Travel to Canada: the role of Canada's immigrant populations

Author

Listed:
  • David Prescott
  • David Wilton
  • Canan Dadayli
  • Aaron Dickson

Abstract

The effect of Canada's immigrant populations on the annual flow of visitors to Canada is investigated. A simple utility-maximizing model of the travel decision motivates the role of immigrant populations in the aggregate demand equation for visits to Canada. The model implies testable hypotheses: price and income elasticities differ by purpose of trip. Using time-series cross-section data on 22 OECD countries an empirical demand model is estimated. Demand is measured by both the number of visitors and person-nights and separate equations are estimated for four subcategories of 'purpose of trip'. Immigrant populations are found to have a strong influence on the annual flow of foreign visitors. It is estimated that the present value of the stream of spending by foreign visitors attributable to an additional immigrant is approximately $4550 in 1996 dollars. In accordance with the model's predictions, price and income elasticity estimates are greater for vacationers than for those visiting family and friends.

Suggested Citation

  • David Prescott & David Wilton & Canan Dadayli & Aaron Dickson, 2005. "Travel to Canada: the role of Canada's immigrant populations," Applied Economics, Taylor & Francis Journals, vol. 37(6), pages 651-663.
    • Handle: RePEc:taf:applec:v:37:y:2005:i:6:p:651-663
    DOI: 10.1080/0003684042000329045
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    References listed on IDEAS

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    1. Lindsay W. Turner & Yvette Reisinger & Stephen F. Witt, 1998. "Tourism Demand Analysis Using Structural Equation Modelling," Tourism Economics, , vol. 4(4), pages 301-323, December.
    2. Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
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    Cited by:

    1. Etzo, Ivan, 2016. "The impact of migration on tourism demand: evidence from Japan," MPRA Paper 72457, University Library of Munich, Germany.
    2. Carla Massidda & Ivan Etzo & Romano Piras, 2015. "Migration and inbound tourism: an Italian perspective," Current Issues in Tourism, Taylor & Francis Journals, vol. 18(12), pages 1152-1171, December.
    3. Alderighi, Marco & Gaggero, Alberto A., 2019. "Flight availability and international tourism flows," Annals of Tourism Research, Elsevier, vol. 79(C).
    4. Georges Harb & Charbel Bassil, 2020. "Terrorism and inbound tourism: Does immigration have a moderating effect?," Tourism Economics, , vol. 26(3), pages 500-518, May.
    5. Davide Provenzano, 2020. "The migration–tourism nexus in the EU28," Tourism Economics, , vol. 26(8), pages 1374-1393, December.
    6. Carla Massidda & Romano Piras, 2015. "Does Internal Migration Affect Italian Domestic Tourism? A Panel Data Analysis," Tourism Economics, , vol. 21(3), pages 581-600, June.
    7. Etzo, Ivan & Massidda, Carla & Piras, Romano, 2014. "Migration and outbound tourism: Evidence from Italy," Annals of Tourism Research, Elsevier, vol. 48(C), pages 235-249.
    8. Carla Massidda & Ivan Etzo & Romano Piras, 2017. "The relationship between immigration and tourism firms," Tourism Economics, , vol. 23(8), pages 1537-1552, December.
    9. Roger White & Bedassa Tadesse, 2011. "International Migration and Economic Integration," Books, Edward Elgar Publishing, number 14318.

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