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What's Pushing International Tourism Expenditures?

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  • Christoph Vietze

Abstract

This paper examines the socio-economic determinants that contribute to outbound tourism expenditures in countries of origin. The author finds a strict, robust, positive impact of all economic factors, such as per capita income and openness to trade, on tourism expenditure per capita, as well as on tourism expenditure per GDP. There seems to be a mutual openness to tourism as countries able to attract high inbound tourism receipts per capita also have high outbound tourism expenditures per capita. A further important finding is that people in democratic countries spend a higher share of income on travelling abroad. The results offer an encouraging suggestion that it makes sense for developing countries to invest in the tourism sector, as an increasing willingness to pay for outbound tourism goes hand in hand with an increasing per capita income.

Suggested Citation

  • Christoph Vietze, 2011. "What's Pushing International Tourism Expenditures?," Tourism Economics, , vol. 17(2), pages 237-260, April.
  • Handle: RePEc:sae:toueco:v:17:y:2011:i:2:p:237-260
    DOI: 10.5367/te.2011.0039
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    References listed on IDEAS

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    1. Valente, Simone, 2005. "Growth, Conventional Production and Tourism Specialisation: Technological Catching-up Versus Terms-of-Trade Effects," Natural Resources Management Working Papers 12139, Fondazione Eni Enrico Mattei (FEEM).
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    8. World Bank, 2007. "World Development Indicators 2007," World Bank Publications - Books, The World Bank Group, number 8150, December.
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    Cited by:

    1. Andreas Freytag & Christoph Vietze, 2013. "Can nature promote development? The role of sustainable tourism for economic growth," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 2(1), pages 16-44, March.
    2. Carolyn Chisadza & Matthew Clance & Rangan Gupta & Peter Wanke, 2022. "Uncertainty and tourism in Africa," Tourism Economics, , vol. 28(4), pages 964-978, June.
    3. Christoph Vietze, 2012. "Cultural Effects on Inbound Tourism into the USA: A Gravity Approach," Tourism Economics, , vol. 18(1), pages 121-138, February.
    4. Umit Bulut & Emrah Kocak & Courtney Suess, 2020. "The effect of freedom on international tourism demand: Empirical evidence from the top eight most visited countries," Tourism Economics, , vol. 26(8), pages 1358-1373, December.
    5. Xueying Huang & Yuanjun Han & Xuhong Gong & Xiangyan Liu, 2020. "Does the belt and road initiative stimulate China’s inbound tourist market? An empirical study using the gravity model with a DID method," Tourism Economics, , vol. 26(2), pages 299-323, March.

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    More about this item

    Keywords

    tourism expenditures; socio-economic factors; gross country evidence; economic development;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment

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