Impact of Selected Macroeconomics Variables on Tourism Demand in the Czech Republic

Abstract

Article aims to provide an in-depth exploration of the key elements that contribute to shaping tourism demand, offering insights for practitioners, researchers, and policymakers. Tourism is a dynamic and multifaceted industry sensitive on changes. Forecast of demand in this part of tertiary sector is a key element for future. Investigation was directed to the impact of selected macroeconomic variables as the nominal exchange rate, inflation ratio, GDP per capita and renumeration of employees on tourism demand represented by number of overnights in hotels and similar accommodation. We used squared model based on Gauss-Markov theorem and our analysis encompasses a dataset covering Czech Republic, Slovakia, Germany, Austria, and Poland from 2000 to 2022. With the model we tried to evaluate the impact of inflation, renumeration of employees as well as nominal exchange rate on tourism in Czech Republic. Given the economic instability wage earnings and asset-based income are susceptible to fluctuations, consequently influencing individuals' purchasing power. The relationship between the exchange rate, inflation ratio, and tourism demand was recognized as significant whereby the statement took into the consideration share of wages and tourism industry on the GDP results.