Immigration and international inbound tourism: Empirical evidence from Australia

Self Cite

The real exchange rate (REX) has long been used as the proxy for prices in tourism demand models. However it has limitations, particularly when it comes to models of outbound tourism.As an alternative, a price competitiveness index (PCI) is developed and used as a proxy for prices in a model of outbound tourism from Australia. Results obtained show that while REX is statistically insignificant and yields a price elasticity of -0.002, PCI is significant and generates a price elasticity of -1.07. The results obtained show that PCI outperforms REX as the preferred price variable in modelling outbound demand on both theoretic and empirical grounds.Furthermore, this index can be used to monitor the inter-temporal competitiveness of a destination.

Section: Objections To Using Rexmentioning

confidence: 99%

“…These elasticities may be underestimated to some extent, as the results do not incorporate the effect of second and further generations of migrants. The links between migration and tourism are explored in more detail in Seetaram (2012a).…”

Section: Migration Elasticitymentioning

confidence: 99%

Measuring price elasticities of demand for outbound tourism using competitiveness indices

Seetaram

Forsyth

Dwyer

2016

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“…Within this strand of literature, interesting recent works are Seetaram & Dwyer (2009), Tadesse & White (2012), Leitão & Shahbaz (2012), Seetaram (2012a;2012b);Genç (2013) and Massidda & Piras (2013) Dwyer (2009) andSeetaram (2012a;2012b) find strong support for a positive link between the stock of foreign-born people living in Australia and tourism flows. In particular, Seetaram & Dwyer (2009) and Seetaram (2012a) concentrate on inbound tourism demand, whereas Seetaram (2012b) focuses on outbound tourist flows. The existence of the tourism-migration nexus is also demonstrated for the USA by Tadesse & White (2012) who find a positive impact of the stock of foreign-born people living in the USA on the number of total arrivals.…”

Section: Review Of the Empirical Literature On Migration And Tourism mentioning

confidence: 99%

“…inter al. Seetaram, 2012a, Massidda & Piras, 2013. Similarly, immigrants can influence outbound tourism flows for the general class of tourists by encouraging departures of other residing in their host countries.…”

Section: Introductionmentioning

confidence: 99%

Migration and outbound tourism: Evidence from Italy

Etzo

Massidda

Piras

2014

This paper investigates the impact of migration on Italian outbound tourism trips disaggregated by purpose of visit. A dynamic panel data analysis is carried out on a sample of 65 countries over the period [2005][2006][2007][2008][2009][2010][2011]. To disentangle pushing and pulling effects, the migration variables are defined at both the origin and the destination of tourism flows. We also control for the Italian real GDP per capita, relative prices and distance. The results show that the stock of Italian residing abroad has a positive impact on outbound tourism for all purposes. Conversely, the stock of foreign-born citizens residing in Italy appears to push Italian outbound tourism for business motives and visiting friends and relatives, but not for holiday trips.

“…These researchers used regression analysis to show that the proportion of the Australian population who have been born in a particular overseas country is a significant determinant of demand for both inbound and outbound leisure tourism. The market segments that the respective authors used in their studies, namely business and leisure tourism, each included a VFR dimension.Recently, Seetaram and Dwyer (2009) and Seetaram (2012aSeetaram ( , 2012b) used a more sophisticated panel data technique to show that immigration influences total inbound tourism to and outbound tourism from Australia. The estimated short term and long term elasticities for international arrivals were 0.03 and 0.09 respectively, while the equivalent short term and long term elasticities for outbound departures were 0.189 and 0.63.These elasticities are high enough to conclude that the level of migration stocks in Australia is an important determinant of inbound tourism and particularly for outbound tourism.…”

Section: Introductionmentioning

confidence: 99%

Is the migration-tourism relationship only about VFR?

Dwyer

Seetaram

Forsyth

et al. 2014

Self Cite

This paper contributes to the literature on the linkages between tourism and migration. Though it is widely recognised that the two phenomena are closely linked, and that migration may induce VFR (visiting friends and relatives) tourism, there has been little econometric evaluation of the relationship. The present analysis draws upon Australian data to identify a strong quantitative link between migration and VFR tourism. It also demonstrates a strong link between migration and other forms of tourism. Indeed the latter are almost equally as strong as the links between migration and VFR tourism. This unexpected finding has implications for policymakers and for conceptualising the migration-tourism relationship.