Determinants of tourist expenditure: A review of microeconometric models

Abstract

This paper presents a comprehensive review of the econometric approaches for the analysis of tourism expenditure at individual level. The attempt to consider only regression models is novel in literature. The paper resumes 86 papers and 354 estimates of econometric models from data at individual level, ranging from 1977 to the early 2012. Discussion focuses on models used, dependent variables, explanatory variables by category and their effect on expenditure. The most frequently used explanatory variables were income, socio-demographic and trip-related, and were tested mainly through classical regression techniques (OLS, quantile, Tobit and two-step, logistic). Future research directions should concern the exploration of new evidence through novel methodological techniques, a more extensive use of psychographic variables and a stronger relation to economic theory.

Tourism expenditure patterns in China

“…A substantial body of research on tourism demand has been devoted to investigating the relationship between tourism demand and its determinants as well as analyzing the characteristics and determinants of tourism demand (Brida & Scuderi, 2013;Li, Song, & Witt, 2005;Song & Li, 2008). In addition, many of these studies have focused on the destination level using total arrival, departure, and expenditure data.…”

“…In addition, many of these studies have focused on the destination level using total arrival, departure, and expenditure data. Micro-data are rarely used to examine individual or household consumption behavior relating to tourism (Brida & Scuderi, 2013;Wang & Davidson, 2010a). Wang and Davidson (2010b) concluded that studies using micro-data have the advantage of considering the diversity and heterogeneity of consumer behaviors, which are averaged out in macroeconomic analysis.…”

“…Brida and Scuderi (2013) categorized four types of tourism expenditure indicators: (1) total expenditure for the whole trip, per party, per household, or per interviewee; (2) expenditure per day; (3) expenditure per person; and (4) expenditure per person per day. The first type was found to be the most frequently used variable in the studies surveyed.…”

“…Fig. 1 summarizes the key findings of the two reviews by Wang and Davidson (2010a) and Brida and Scuderi (2013) in terms of data types and determinants of tourism expenditure.…”

“…Consequently, powerful analytical models are crucial in order to trace tourists' spending patterns. Econometric techniques offer valuable tools for investigating the relationships between tourism, expenditure, and their characteristics (Brida & Scuderi, 2013).…”