Travel to Canada: the role of Canada's immigrant populations

Abstract

The effect of Canada's immigrant populations on the annual flow of visitors to Canada is investigated. A simple utility-maximizing model of the travel decision motivates the role of immigrant populations in the aggregate demand equation for visits to Canada. The model implies testable hypotheses: price and income elasticities differ by purpose of trip. Using time-series cross-section data on 22 OECD countries an empirical demand model is estimated. Demand is measured by both the number of visitors and person-nights and separate equations are estimated for four subcategories of 'purpose of trip'. Immigrant populations are found to have a strong influence on the annual flow of foreign visitors. It is estimated that the present value of the stream of spending by foreign visitors attributable to an additional immigrant is approximately $4550 in 1996 dollars. In accordance with the model's predictions, price and income elasticity estimates are greater for vacationers than for those visiting family and friends.

Migration and inbound tourism: an Italian perspective

“…These include the works of Prescott et al (2005), Seetaram & Dwyer (2009), Dwyer et al (2010, Gheasi et al (2011), Tadesse & White (2012, Seetaram (2012a, b), Leitão & Shahbaz (2012), Etzo et al (2013), Genç (2013) and Law et al (2013). The emerging picture presents a robust, positive relationship between the stock of immigrants and tourism flows.…”

“…Other Anglophone countries considered by empirical researchers are Canada (Prescott et al, 2005), USA (Tadesse & White, 2012), UK (Gheasi et al, 2011) and New Zealand (Law et al, 2013;Genç, 2013). Finally, Leitão & Shahbaz (2012) focus on Portugal, whilst Etzo et al (2013) concentrate on Italy.…”

“…Disaggregated data by purpose of visit, with an explicit reference to the total non-VFR or to some of its categories, are analyzed by Prescott et al (2005), Dwyer et al (2010), Etzo et al (2013) and Law et al (2013). Prescott et al (2005) study tourism demand to Canada and disaggregate tourist flows by purpose of visit, namely VFR, vacation, work and education.…”

“…Prescott et al (2005), Dwyer et al (2010), Gheasi et al (2011), Genç (2013 and Law et al (2013) apply simple OLS or, at most, standard panel data techniques (static homogeneous estimators). Seetaram & Dwyer (2009), Seetaram (2012a, Leitão & Shahbaz (2012) and Etzo et al (2013) use various types of dynamic homogeneous panel data estimators, whereas Tadesse & White (2012) exploit a zeroinflated negative binomial model.…”

Migration and outbound tourism: Evidence from Italy

“…The works of Prescott et al (2005), Dwyer et al (2010), Gheasi et al (2011) and Law et al (2013) are worth to be mentioned. Prescott et al (2005) analyze the impact of the stock of foreign-born people living in Canada on both VFR and three NON-VFR tourism categories, namely vacation, work and education. They use a cross section of 22 OECD countries.…”