An Econometric Model of Tourist Demand

Abstract

Tourism today includes a wide array of economic and social activities on an international scale and covers all social classes. It is directly related with the development of every modern society and aims at meeting human needs in a developed culture so as to create the conditions for advancing understanding and kinship among the different peoples in order to achieve a better future for mankind. The tourism sector does not constitute a specific sector in an economy, but includes goods and services from various sectors. The present study focuses on foreign tourism due to its primary influence on changes made in the social and economic structure of the tourist-host country. This study employs an econometric model of tourist demand in a developed tourist market such as that in Greece which aims to improve its tourist product.

Demand for tourism in Greece: a panel data analysis using the gravity model

“…The first way is to take the total number of arrivals of non-resident tourists at national borders as measure for tourism demand (see Akis, 1998;Stucka, 2002;Naude and Saayman, 2005;Phakdisoth and Kim, 2007). Garín-Muñoz (2006), and Dritsakis and Athanasiadis (2000) use tourist arrivals per capita to capture the volume of tourism in Canary Islands and Greece, respectively. Leitao (2010) measures the demand for tourism using the number of visitors staying in hotels.…”

“…The empirical literature shows mixed results when it comes to the power of foreign income. Dritsakis and Athanasiadis (2000) estimate the demand functions for each of the main tourist generating countries to Greece. The empirical results show that foreign income is not as an important determinant of tourist arrivals as it would be expected according to the theory.…”

“…The demand for tourism is estimated using gravity equations taking the number of tourist arrivals as a dependent variable. In comparison with previous empirical studies of international tourist flows to Greece (Lathiras and Siriopoulos, 1998;Dritsakis and Athanasiadis, 2000;Louvieris, 2002;Dritsakis, 2004), this paper differs in that it utilises a larger dataset, includes more countries and uses additional explanatory variables. A second contribution of this study is that we elaborate on the previous literature by considering not only the relative prices but also the comparative price levels (CPLs) in the analysis of foreign tourist demand.…”

The determinants of United Kingdom student visa demand from developing countries

“…For study visits, the average income elasticity across the seven countries was estimated to be 1.35 with Germany the only country yielding a statistically significant estimate (−1.15) for the visa price elasticity of demand. Dritsakis and Athanasiadis (2000), using Greek data, found neither income nor exchange rate effects to be statistically significant, which is in contrast to Garín-Muñoz and Amaral (2000) who, examining the impact of selected economic determinants on the international demand for tourism services in Spain between 1985 and 1995, report elasticities of 1.40, 0.50…”

Econometric Modelling of Tourist Flows Dynamics

“…Зокрема, N. Dritsakis та S. Athanasiadis у своєму дослідженні побудували економетричну мо-дель туристичного попиту на розвиненому туристичному ринку з метою покращення туристично-го продукту Греції [1]. У праці T. Garin-Munoz і T. Perez Amaral проведено дослідження оцінки економічних детермінант міжнародного попиту на туристичні послуги в Іспанії на основі еконо-метричних моделей, враховуючи такі чинники як реальний дохід на душу населення, обмінні ку-рси та реальні ціни на іспанські туристичні послуги [2].…”