European outbound tourism expansion on the islands of Cape Verde

2021 ◽  
pp. 135481662110240
Author(s):  
Manuel González-Gómez
Keyword(s):  
Income Elasticity ◽  
Cape Verde ◽  
Cointegration Analysis ◽  
International Tourism ◽  
Tourism Demand ◽  
Bounds Testing ◽  
Tourist Destinations ◽  
Distributed Lag ◽  
Inelastic Demand ◽  
Island Communities

The main objective of this article is to shed light on the determinants of international tourism demand expansion in Cape Verde. The research involves cointegration analysis to test the existence of a long-term equilibrium relationship between the variables included in tourism demand using the autoregressive distributed lag bounds testing approach. The results showed high income elasticity and price inelastic demand. Moreover, turmoil in traditional tourist destinations in non-European Mediterranean basin countries, coupled with the investments of tour operators and hotel groups who are key players in the European source markets, significantly and positively affected international tourism demand. Supply side changes associated with foreign investment were necessary to increase the number of tourists. Finally, lower level of income in European countries following the financial crisis of 2008 might have favored the shift of European tourists from more expensive destinations to Cape Verde. The concentration of tourism, economic growth, jobs creation, and population growth on two islands may have affected island communities, resources, and other aspects of inter- and intraisland relationships.

scholarly journals Aggregate Outbound Tourism Demand in South Africa: an Econometric Analysis

2013 ◽  
Vol 5 (5) ◽  
pp. 260-267 ◽  
Author(s):  
Emmanuel Ziramba
Keyword(s):  
South Africa ◽  
Income Elasticity ◽  
Cointegration Analysis ◽  
Annual Data ◽  
Tourism Demand ◽  
Relative Prices ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
Short Run

This paper, with the use of annual data covering the period 1975 to 2008, seeks to identify the determinants of outbound tourism demand (outbound tourist outflows) in South Africa. We employ cointegration analysis by utilising an autoregressive distributed lag (ARDL) approach proposed by Pesaran et al. (2001) to make inferences about the long run and short run relationships. The results indicate that in the long run, outbound tourism demand is influenced by the real domestic income and the relative prices. Our results indicate that outbound tourism demand is a luxury good with an income elasticity of 3.5. In the short run, only relative prices have an impact on outbound tourism demand in South Africa. Outbound tourism demand was found to be price inelastic in both periods.

scholarly journals Foreign Trade and Economic Growth: Evidence of Thirlwall’s Law in Iran

2011 ◽  
Vol 2 (2) ◽  
pp. 81-88
Author(s):  
Ahmad Jafari Samimi ◽  
Ramezan Hosseinzadeh .
Keyword(s):  
Economic Growth ◽  
Foreign Trade ◽  
Growth Rates ◽  
Income Elasticity ◽  
Relative Price ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Long Run ◽  
Oil Export ◽  
Actual Growth

Thirlwall’s law establishes a relation between the long-run growth rate, the growth of exports and the long-run income elasticity of imports. This paper applies Thirlwall’s basic balance-of-payments constraint growth model to Iranian economic growth for the period of 1971-2007 by using Autoregressive Distributed Lag (ARDL) Bounds Testing approach. The empirical results reveal that import is cointegrated with relative price and income, and the equilibrium growth rates coincide with actual growth rates. However, our estimated findings reveal that the Thirlwall’s law has been rejected in Iran. In other words, balance of payment doesn’t hinder economic growth in this country. The reason may be due to the fact that Iran is a member of OPEC and its oil export plays a significance role in the country’s foreign trade.

Relationship between ICT and international tourism demand: A study of major tourist destinations

2019 ◽  
Vol 26 (6) ◽  
pp. 908-925 ◽  
Author(s):  
Nikeel Kumar ◽  
Ronald Ravinesh Kumar
Keyword(s):  
Positive Association ◽  
International Tourism ◽  
Tourism Demand ◽  
Group Approach ◽  
Tourist Destinations ◽  
Pooled Mean Group ◽  
Short Run ◽  
Growth Hypothesis

In this article, we study the effect of ICT on tourism demand in nine major tourist destinations based on visitor arrivals. Mobile and broadband subscriptions are used to proxy for ICT. Additionally, we account for price, source country’s income, and the destination’s income. Balanced panels for the period 1995–2017 and 2002–2017 are used for mobile and broadband subscriptions, respectively. The pooled mean group approach is used for estimation. The results indicate a 1% increase in mobile subscriptions and broadband would increase international visitor arrivals by 0.04% and 0.11%, respectively. The elasticity coefficients of price and income are −0.71 and 1.58, respectively, based on the mobile subscription model, and −0.88 and 1.83, respectively, based on broadband subscription. The destination’s income has only a short-run positive association with tourism demand. The causality results indicate that ICT cause tourism demand, and support for technology-led growth hypothesis in the major tourist destinations.

An Econometric Estimation of the Demand for Tourism: The Case of Russia

2006 ◽  
Vol 12 (1) ◽  
pp. 5-20 ◽  
Author(s):  
Bernardina Algieri
Keyword(s):  
Exchange Rates ◽  
Real Exchange Rates ◽  
Cointegration Analysis ◽  
Air Transport ◽  
Empirical Literature ◽  
Tourism Demand ◽  
Cost Of Living ◽  
Tourist Destinations ◽  
Long Run ◽  
Cointegration Relationship

This paper examines the determinants of tourism revenues in Russia and gauges their impact on tourism demand over the period 1993:12 to 2002:10. The demand for tourism and the choice of tourist destinations are subject to significant swings for many reasons, including variations in income, exchange rates and prices, as well as unpredicted events such as relevant political changes. Therefore, reliable estimates of the elasticities of tourism demand become important for the formulation of efficient tourism policies. In this context a cointegration analysis of the demand for tourism in Russia within a VAR framework was carried out. The results suggest a robust and significant long-run cointegration relationship between Russian tourism receipts, world GDP, real exchange rates and air transport prices. In particular, the estimated income, cost of living and airfares elasticities are statistically significant and have the expected signs, and their values are in accordance with the empirical literature.

THE GDP IMPACT ON INTERNATIONAL TOURISM DEMAND: A SLOVENIA BASED CASE

2007 ◽  
Vol 14 (2) ◽  
pp. 217-228
Author(s):  
Helena Nemec Rudež
Keyword(s):  
Regression Analysis ◽  
Income Elasticity ◽  
International Tourism ◽  
Strong Impact ◽  
Tourism Demand ◽  
Luxury Good ◽  
Functional Forms ◽  
The Impact ◽  
The Given ◽  
The Relationship

The paper empirically examines the relationship between Slovenian GDP and international tourism expenditures of Slovenia in the period 1994-2006. For this purpose, regression analysis in different functional forms was used to examine the impact of GDP on international tourism expenditures. The results reveal positive and strong impact of GDP on international tourism expenditure in Slovenia in the given period of time. Further, income elasticity of outbound tourism demand was calculated leading to the conclusion that travelling in foreign destinations has characteristics of a luxury good for Slovenian people.

Tax revenue and economic growth in developing country: an autoregressive distribution lags approach

2020 ◽  
Vol 7 (54) ◽  
pp. 205-217
Author(s):  
Mnaku Honest Maganya
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Testing Procedure ◽  
Gdp Growth ◽  
Bounds Testing ◽  
Causality Test ◽  
Significance Level ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
The Government

AbstractTanzania, like most other developing countries, faces numerous economic challenges in striving to achieve sustainable economic growth and development through taxation. In the literature, the debate on how effective taxes are as a tool for promoting economic growth and economic development remains inconclusive, as various research have reported mixed effects of tax on economic growth. This article investigates the effect of taxation on economic growth in Tanzania using the recently developed technique of autoregressive distributed lag model (ARDL) bounds testing procedure for the period from 1996 to 2019. Various preliminary tests were conducted including stationary tests as well as the pair-wise Granger causality test. According to the results obtained, domestic goods and services (TGS) taxes are positively related to GDP growth and are statistically significant at 1% level. Income taxes, on the other hand, were found to be negatively related to GDP growth and to be statistically significant at 5% level. The pair-wise Granger causality results indicated that there is bidirectional Granger causality between TGS and GDP growth at 1 % significance level. The government should aim at growing, nurturing and sustaining tax base to positively drive economic growth even further.

Economic modeling of touristic services demand in the regions

2019 ◽  
pp. 87-93
Author(s):  
Ivan Blahun ◽  
Halyna Leshchuk ◽  
Mariya Kyfor
Keyword(s):  
Systematic Approach ◽  
Income Elasticity ◽  
Probability Model ◽  
Economic Modeling ◽  
Tourism Demand ◽  
Goods And Services ◽  
Household Incomes ◽  
Tourism Services ◽  
Income Decile

Considering the important role of tourism in the socio-economic development of regions, the need for information and modeling of ways to increase demand for tourism services and tourism development is being updated. The article uses methods of analytical, logical, comparative analysis and systematic approach to study trends in demand for tourist services in Ukraine. Econometric modeling analyzes the demand for tourism services by the level of income and expenditures of the population in 2018. Trends in demand for tourism services in 2018 in terms of income and expenditure of the population with the use of the Tornquist econometric model have been analyzed. It is proposed to use the decile groups of the population for analyzing income and expenditure by the level of income, total income per capita, the level of household expenditure relative to income, the percentage of tourism expenditure by households, the expenditure on tourism and the elasticity of tourism demand. Average values of the population’s expenditures on tourism were established, which helped to determine the elasticity of effective demand for each decile group. The more than one unit of elasticity of effective tourism demand for each decile group indicated that tourism services for domestic households belong to the group of luxury goods and services. It should be noted that in the following decile income groups of households there is a decrease in elasticity. It means that when income tends to increase indefinitely, elasticity coefficients fall, and this indicates a stabilization of costs of this type. In this case, the percentage of households in each decile group that recorded the costs of organized tourism in their budgets and the value of the probability of household participation in this form of recreation was determined based on an estimated probability model. An analysis of the values of income elasticity indicators in each income decile group has shown that increasing household incomes contribute to increased demand for tourism services and an increase in the share of expenditures for these purposes in household budgets.

scholarly journals The Determinants of Tourist Expenditure Per Capita in Thailand: Potential Implications for Sustainable Tourism

2021 ◽  
Vol 13 (12) ◽  
pp. 6550
Author(s):  
Wanvilai Chulaphan ◽  
Jorge Fidel Barahona
Keyword(s):  
Natural Resources ◽  
Sustainable Tourism ◽  
Least Square ◽  
Mass Tourism ◽  
Tourist Destinations ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Autoregressive Distributed Lag ◽  
Lag Model ◽  
Per Capita

Tourism authorities in Thailand have consistently pursued profit-seeking mass tourism, resulting in the detriment of the natural resources in major tourist destinations. In response, sustainable tourism projects centered on preserving the environment have been established but neglect the financial needs of tour operators. The objective of this study was to investigate the determinants of tourist expenditure per capita in Thailand using a dataset consisting of 31 countries from 2010 to 2017. The analysis was based on an autoregressive distributed lag model (ARDL) and used a panel estimated generalized least square (ELGS). Generating such knowledge is essential for tourist authorities to develop profitable and sustainable tourism projects in tourist destinations whose natural resources have been affected by profit-seeking tourism. The tourism expenditure per capita is positively affected by word of mouth, income, and the rising prices in other major tourist destinations in Asia. However, it was negatively affected by relative levels of price and corruption. Sustainable tourism projects can be used to develop activities that will help distinguish Thailand from other tourism destinations in Asia. However, in implementing these sustainable tourism initiatives, the mark-up should be minimized to keep tourist prices in Thailand competitive.

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