Estimating International Tourism Demand using Cross-Sectional Regression: A Comparative Study on International Tourism Expenditure of Lower and Higher Income Economies

International Journal of Economics and Management Studies

© 2022 by SSRG - IJEMS Journal

Volume 9 Issue 5

Year of Publication : 2022

Authors : Muhammed Salim Anappattath, Shiby M Thoma

10.14445/23939125/IJEMS-V9I5P102

How to Cite?

Muhammed Salim Anappattath, Shiby M Thoma, "Estimating International Tourism Demand using Cross-Sectional Regression: A Comparative Study on International Tourism Expenditure of Lower and Higher Income Economies," SSRG International Journal of Economics and Management Studies, vol. 9,  no. 5, pp. 12-22, 2022. Crossref, https://doi.org/10.14445/23939125/IJEMS-V9I5P102

Abstract:

The present study attempts to identify the determinants of international tourism expenditure that proxies international tourism demand in three cases of economies such as overall economies case, higher-income economies case, and lower-income economies case. Income is the most relevant factor driving tourism demand, followed by tourist arrivals in all three cases of economies. Immigrant stock is a decisive factor driving tourism demand in the higher-income economies only as higher tourism expenditure is reported from the countries where migrant stock is greater. Migrant stock is indeed greater in advanced economies as well. While the Population is relevant only in higher-income economies, the urban Population makes at least some sense only in lower-income economies. The number of air passengers carried is irrelevant in explaining international tourism expenditure in all three cases.

Keywords:

International tourism expenditure, Income, Tourist arrivals, Immigrant stock, Tourism demand, Lower-income economies, Higher-income economies.

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