Another Look at the Determinants of Tourism Expenditure

Micro-economic determinants of tourist expenditure: A quantile regression approach

“…Recently, Hung et al (2012) argued that Ordinary Least Squares (OLS) estimations consider only the average response of tourist expenditure to changes in its determinants while possible differences among consumer segments, like heavy spenders and light spenders, are overlooked. Thus, following the seminal work by Koenker and Hallock (2001), Hung et al (2012) highlight the increased accuracy of the quantile regression method to identify the determinants of tourist expenditure.…”

“…Recently, Hung et al (2012) argued that Ordinary Least Squares (OLS) estimations consider only the average response of tourist expenditure to changes in its determinants while possible differences among consumer segments, like heavy spenders and light spenders, are overlooked. Thus, following the seminal work by Koenker and Hallock (2001), Hung et al (2012) highlight the increased accuracy of the quantile regression method to identify the determinants of tourist expenditure. In their findings, the OLS regression reveals an average negative relationship between income and tourist expenditure expressed as a share of total household income; conversely, the quantile regression shows a negative different marginal effect for the low spenders (i.e., tourism is inferior good) and a positive effect for higher spenders (tourism is a normal good).…”

“…Recently the QR approach has also been adopted in tourism studies, these include the analyses in Hung, Shang, and Wang (2012) on tourism consumption behavior in Taiwan, Lew and Ng (2012) on Hong Kong visitors spending, Saayman and Saayman (2012) on three sport events in South Africa, and Chen and Chang (2012) on the influence of travel agents in Taiwan.…”

Cruise passengers’ expenditure in the Messina port: a mixture regression approach

“…Some authors have modeled expenditures levels as function of socio-demographic, trip-related and psychographic variables, plus budget constraints. Recently, Hung et al (2012) and Marcussen, (2011) have used of Ordinary Lest Squares OLS estimation, in order to consider only the average response of tourist expenditure to changes in its determinants while possible diff erences among consumer segments are overlooked. More recently, quantile regression was adopted in tourism study by Chen and Chang (2012) on the infl uence of travel agents in Taiwan, and by Marrocu et al (2015) on the eff ect of the main determinants of tourist expenditure to non -resident tourists in Sardinia.…”

Determinants in Tourist Expenditure Composition — The Role of Airline Types

“…Methods range from mean comparison tests (Craggs and Schofield, 2009), OLS and WLS regression Lumsdon, 2000, 2003;Cannon and Ford, 2002) to advanced econometric techniques. For instance, Hung et al (2012) use quantile regression to build equations predicting not only typical expenditures but also the highest and lowest. Alegre et al (2009), Eugenio-Martin (2003, Hong et al (1999) and Nicolau and Más (2005) propose double-hurdle, Heckit and related models to separate the decision whether to spend on tourism from the decision of how much to spend.…”