Intra-Continental and Intercontinental Service Trade in the Travel and Tourism Industry

Abstract

This study investigates the features and determinants of the international travel and tourism service trade between the European, Asian and North American markets from 2000 to 2005. The evolution of bilateral service trade in each of these markets indicates that travel and tourism within continents plays an important role in 36 countries. The study first employs the Breusch-Pagan LM (Lagrange multiplier) test, the Hausman test and the Hausman-Taylor overidentification test to choose the appropriate empirical method. The empirical results reveal that the supply-pull effect from parent countries (the economic size of tourist origins) plays an important role in improving the tourism service exports of the various destinations. In addition, the home countries' exports of travel services are inelastic to the appreciation of their own currencies. Moreover, distribution infrastructures and the adjacency and RTA (ASEAN) dummies are found to have significantly positive contributions in terms of enhancing Asian tourism service exports, whereas the European Union (EU) and NAFTA discourage European and North American tourism exports, respectively.

Tourism Invisible Part of Exports: The Analysis of Slovenia and Montenegro on the Chinese Outbound Tourism

“…Stronger contribution was noticed in countries where tourism accounts for a higher share of gross d o m e s t i cp r o d u c t( G D P ) .I ti sa l s oo b s e r v e dt h a tt o u r i s md i dn o tc o n t r i b u t ei nl e a s td e v e loped countries (LDCs) more than other countries and in conclusion remarks are stated that 'neither the size of the population or economy of a country, nor the wealth or the amount of travel and tourism GDP of a country have any significant influence on tourism'sa c t u a l contribution to economic growth' [15] which is in contrary to previous research results [13] and implies more complex approach to determine real tourism's impact according to tourism-led growth (TLG) hypothesis [9,16].…”

“…The growth of the trade in goods influences mainly international business travel as 'spillover effect from goods trade has significantly positive signs for all pairs of regions apart from the Europe-North America and North America-Europe pairs of regions' [13].…”

“…By researching the features and determinants of the international travel and tourism service trade between 37 countries from European, Asian and North American regions during period 2000-2005, additional facts [13] were revealed.…”

Examining intra-African tourism: A trade theory perspective

“…The application of the model has been widely used in testing international trade patterns, currency unions and border effects (see Burger, Van Oort & Linders 2009;Carrère 2006;Westerlund & Wilhelmsson 2011). The gravity model has also been applied to tourism scenarios such as transport infrastructure (Khadaroo & Seetanah 2008), tourism flows (Keum 2010) (Chang & Lai 2011;Fourie & Santana-Gallego 2013;Fourie, Rosselló & Santana-Gallego 2015;Muhammad & Andrews 2008;Seetanah, Durbarry & Ragodoo 2010) and tourism and regional integration (Saayman, Figini & Cassella 2016). It is therefore the most widely applied trade theoretical model in the tourism literature and will therefore also form the basis for our modelling approach.…”

Aid for Trade and Value Chains in Tourism

“…Countries with higher incidence of violence or crime have significantly fewer linkages. Additional factors that have been highlighted in the relevant literature are the quality of infrastructure (Singh and Kaur, 2005;Chang and Lai, 2011), macroeconomic stability and an adequately trained work force (World Bank, 2008). 10 Box 2 discusses an example of how a country can stimulate backward linkages through technical assistance projects funded with aid-fortrade funds.…”