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Long-haul flights and tourist arrivals

  • Tveteras, Sigbjorn
  • Roll, Kristin H.

Travel cost is a barrier for many tourists who wish to visit faraway destinations. This affects exotic tourism destinations located far from key markets since it the great majority of travelers from these markets will find travel cost prohibitively high. However, exotic tourism destinations might attract more visitors if they are able to improve market access through improved international air connectivity. The objective of this study is to test whether an increase in the number of long-haul flights has positive impacts on the number of tourist arrivals. We estimate a dynamic demand model using panel data of tourist arrivals to Peru and flight connections from 75 origin countries spanning the years 2004 to 2009, and find significant positive direct and indirect effects of long haul flights on demand for air travel to Peru.

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File URL: http://mpra.ub.uni-muenchen.de/32157/1/MPRA_paper_32157.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 32157.

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Date of creation: 11 Jul 2011
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Handle: RePEc:pra:mprapa:32157
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  1. JG. Brida & M. Pulina, 2010. "A literature review on the tourism-led-growth hypothesis," Working Paper CRENoS 201017, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  2. Steve Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  3. Gronau, Reuben, 1970. "The Effect of Traveling Time on the Demand for Passenger Transportation," Journal of Political Economy, University of Chicago Press, vol. 78(2), pages 377-94, March-Apr.
  4. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  5. Anderson, James E & Kraus, Marvin, 1981. "Quality of Service and the Demand for Air Travel," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 533-40, November.
  6. Witt, Stephen F. & Witt, Christine A., 1995. "Forecasting tourism demand: A review of empirical research," International Journal of Forecasting, Elsevier, vol. 11(3), pages 447-475, September.
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