How do Overnight Stays React to Exchange Rate Changes?

Stettler, Christian

doi:10.1007/bf03399437

Cited by 8 publications

(3 citation statements)

References 21 publications

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“…The exchange rate elasticity exhibited by Russian tourists is relatively high when compared to the related literature. For Swiss communities, Stettler (2016) finds similarly large exchange rate elasticities for German, Dutch and Belgian visitors. Based on a meta-analysis, Peng et al (2015) find a price elasticity of 1.3 for European destinations.…”

Section: Estimation Resultsmentioning

confidence: 90%

Impact of rouble’s depreciation on Russian overnight stays in Finnish regions and cities

Falk

Vieru

2016

Tourism Economics

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This article investigates how the depreciation of the Russian rouble against the euro has affected Russian tourism demand in Finnish regions and cities. Using dynamic panel data models, the authors find that the elasticity of Russian tourists’ overnight hotel stays with respect to exchange rates is significantly larger than 1 (approximately 1.6) in absolute terms, indicating that Russian tourists are highly sensitive to changes in exchange rates. There is some evidence that the sensitivity of Russian tourism demand increased following the introduction of economic sanctions in August 2014. The sensitivity of tourism demand to exchange rate changes differs highly across regions and cities, with higher elasticities in border regions and cities not too far from the Russian border. These regions and areas attract a significant number of short-stay Russian visitors who are often motivated by cross-border shopping and other activities.

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Section: Estimation Resultsmentioning

confidence: 90%

Impact of rouble’s depreciation on Russian overnight stays in Finnish regions and cities

Falk

Vieru

2016

Tourism Economics

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“…Finally, it is worth noting that, overnight stays (also referred to as “nights”), being the sum of the number of people that are present at a given destination each night in a set time-frame, reflect both the number of visitors and the length of stay. Moreover, overnight stays represent a variable often employed in the tourism literature to compute price indexes/expenditure of travelers (see e.g., Falk 2010; Serra, Correia, and Rodrigues 2014; Stettler 2017).…”

Section: Methodsmentioning

confidence: 99%

From Quantity to Quality: Capturing Higher Spending Markets through a Segmentation of Travelers’ Expenditure

Nava

Osti

Zoia

2021

Journal of Travel Research

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Many tourism destinations aim at expanding their market share of high spending visitors by shifting from quantity to quality. The COVID-19 pandemic has forced the introduction of social distancing requiring hotspots and mass destinations to reduce their capacity. This paper proposes a two-step approach for identifying top spending European countries over time, distinguishing between leisure and business travelers. The methodology employs the Country Product Dummy index with a hierarchical clusterization, enriched by a convergence analysis. This approach overcomes general shortcomings of descriptive statistics and cluster analyses directly applied to raw expenditure data. The outcomes of this analysis provide a detailed picture of the European travelers’ expenditure across time and geographical area. The identified top spending countries of leisure and business travelers can be targeted through ad-hoc marketing campaigns and specific packages for privileging quality tourism and planning economic recovery in the post-COVID-19 reopening phase, while shifting away from mass tourism.

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“…Marvel and Johnson (1997) suggest that the sensitivity of demand for Swiss hotel accommodations to real income is highest for domestic visitors and generally lower for foreign visitors. Other recent studies on Swiss inbound tourism and travel demand use panel data with a short time series, which makes it difficult to test the stability of the coefficients (Falk, 2013; Stettler, 2017).…”

Section: Conceptual Backgroundmentioning

confidence: 99%

Income elasticity of overnight stays over seven decades

Falk

Lin

2018

Tourism Economics

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This article provides new evidence on the stability of the long-run income elasticity of tourism and travel demand by use of the recently developed smooth time-varying cointegration regression model. The estimations control for relative purchasing power parity of the source country and make use of a specific country dataset where domestic and foreign overnight stays are available over a longer period of time (Switzerland, 1934–2015). Results show that the income elasticity of foreign overnight stays peaks at approximately two in the early 1960s, drops to around one in the early 1980s and from then on remains stable until the end of the sample. Domestic income elasticity reaches its highest levels in the 1930s, then steadily falls towards one in the mid-1960s, and therefrom remains stable until 2015. Different phases in the tourism area life cycle might be a major explanatory factor for variation in income elasticities over time.

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How do Overnight Stays React to Exchange Rate Changes?

Cited by 8 publications

References 21 publications

Impact of rouble’s depreciation on Russian overnight stays in Finnish regions and cities

Impact of rouble’s depreciation on Russian overnight stays in Finnish regions and cities

From Quantity to Quality: Capturing Higher Spending Markets through a Segmentation of Travelers’ Expenditure

Income elasticity of overnight stays over seven decades

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