Estimating Tourist Demand through Cointegration Analysis: Swedish Data

Salman, Ali

doi:10.1080/13683500308667959

Cited by 32 publications

(27 citation statements)

References 2 publications

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“…The change in exchange rate will affect the currency value of the origin country, please refer to Equation (4). Any change in exchange rate will lead to the appreciation or depreciation of tourist currency (Salman, 2003;Lim, 2004;Dritsakis, 2004;and Toh, Habibullah and Goh, 2006). Any appreciation in tourist currency may encourage more people to travel.…”

Section: Independent Variables and Dummymentioning

confidence: 99%

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Asian Tourism Demand For Malaysia: A Bound Test Approach

Salleh

Law

Ramachandran

et al. 2008

CMR

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The objective of this paper is to investigate the long-run and short-run relationships among tourist arrivals to Malaysia and tourism price, substitute price, travelling cost, income and exchange rate for Asian7. The autoregressive distributed lag (ARDL) bounds test approach developed by Pesaran et al. (2001) is employed in the analysis, and the data cover the period 1970 to 2004. The empirical results show that in the long-run and short-run the tourism price, travelling cost, substitute price and income are the major determinants of Malaysia's tourism demand. The results also show that word-of mouth effect, world economic crisis and the outbreak of SARS (2002-03) significantly affected the demand for Malaysia's tourism in the shortrun. The findings are consistent with the economic theory and the model passed all the diagnostic tests.

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Section: Independent Variables and Dummymentioning

confidence: 99%

“…The calculation of tourism price is based on the consumer price index (CPI) of the visited country divided by the CPI of the country of origin (Salman, 2003;Lim, 2004;Dritsakis, 2004;and Toh, Habibullah and Goh, 2006). Please refer to equation (1).…”

Section: Independent Variables and Dummymentioning

confidence: 99%

Asian Tourism Demand For Malaysia: A Bound Test Approach

Salleh

Law

Ramachandran

et al. 2008

CMR

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“…We can divide this into two components: (i) the cost of living for the tourist at the destination, and (ii) the cost of travel or transport to the destination. I divide the cost of living into two components: (i) the CPI in relative price form assuming that tourists have the option of spending their vacation in either SW:6 or NWT, and (ii) tourist consumer expenditure, real consumer expenditure, real income, and per capita income (Salman, 2003). In this chapter, CPI represents the cost of living.…”

Section: Economic Factors and The Model Specificationmentioning

confidence: 99%

Using the SUR model of tourism demand for neighbouring regions in Sweden and Norway

Salman¹

2011

Advances in Econometrics - Theory and Applications

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Section: Dynamic Specification For the Aid Modelmentioning

confidence: 99%

“…The effective relative price of tourism at the destination is specified in absolute and relative terms. The effective relative prices of tourism in each country, , is given as the ratio of the CPI of the destination country (i) to the country of origin (j), adjusted by the relative exchange rate, to obtain a proxy for the real cost of living (Salman, 2003).The variable refers to the logarithm of real total tourism expenditure per tourist.The total tourism expenditure of Thai tourist in each destination is calculated from the average tourism expenditure per day, length of stay and number of outgoing Thai nationals by country of destination. Many empirical studies have used the total population of the origin country in constructing this variable.…”

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confidence: 99%

Estimating Price Effects in an Almost Ideal Demand Model of Outbound Thai Tourism to East Asia

Chang¹,

Khamkaew²,

MichaelMcAleer³

2012

J Tourism Res Hospitality

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This paper analyzes the responsiveness of Thai outbound tourism to East Asian destinations, namely China, Hong Kong, Japan, Taiwan and Korea, to changes in effective relative price of tourism, total real total tourism expenditure, and one-off events. The nonlinear and linear Almost Ideal Demand (AID) models are estimated using monthly data to identify the price competitiveness and interdependencies of tourism demand for competing destinations in both long run (static) and short run error correction (dynamic) specifications. Homogeneity and symmetry are imposed in the long run and short run AID models to estimate the elasticities. The income and price elasticities provide useful information for public and private tourism agents at the various destinations to maintain and improve price competitiveness. The empirical results show that price competitiveness is important for tourism demand for Japan, Korea and Hong Kong in the long run, and for Hong Kong and Taiwan in the short run.Keywords: Almost Ideal Demand (AID) model, tourism demand, price competitiveness, substitutes, budget shares, error correction.JEL classifications: C3, C5, D12, L83. 3 IntroductionThe contribution of tourism to economic growth and development has been well documented in the literature. In recent decades, tourism has become one of the world's largest and fastest growing sectors, and has many important economic roles, especially as a major earner of foreign exchange. Numerous attempts have been made to understand the key determinants of tourism demand, with the purpose of implementing appropriate policies and strategies to attract a greater number of international visitors. As a result, competition among tourist destinations has become intense.Price competitiveness is a major factor that could directly affect the attractiveness of a particular destination as changes in tourism prices influence the amount of tourist expenditure (Song and Witt, 2000). This indicator provides useful information that is important for developing pricing policies, planning and marketing strategies.Although Thailand is famous for inbound tourism, the rapidly rising income levels of Thai travellers during the last decade have also fueled a quest for visiting tourism destinations abroad.Overall, 85% of Thai tourism spending takes place in the Asia-Pacific region, with most trips being of one-week duration, and to a single destination. According to the Tourism Authority of Thailand statistical reports for 1996-2007, a high proportion of outbound Thai tourists travel to East Asia, which accounts for over 80% of Thai tourists (see Figure 1). (2010)), the number of outbound Thai travelers to all destinations in East Asia has increased consistently over the past few decades. The specific reduction in tourist activities was also reflected in a slowdown of outbound tourist traffic within the region, which had a negative impact on the overall Asian tourism environment. However, the reduction in Asian tourism recovered rapidly in the third and the fourth quarters of 2...

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Estimating Tourist Demand through Cointegration Analysis: Swedish Data

Cited by 32 publications

References 2 publications

Asian Tourism Demand For Malaysia: A Bound Test Approach

Asian Tourism Demand For Malaysia: A Bound Test Approach

Using the SUR model of tourism demand for neighbouring regions in Sweden and Norway

Estimating Price Effects in an Almost Ideal Demand Model of Outbound Thai Tourism to East Asia

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