How do prosperity and aspiration underlie leisure tourism expenditure patterns?

This research advances the current knowledge of tourism expenditure by adapting a new analytical approach to understand expenditure differentials along their conditional distributions, based on multiple segmentation criteria. Using data from survey and secondary sources, we approximate tourists’ required utilities via prosperity at their countries of residence, a macro-level criterion, and individual-travel aspirations, a micro-level criterion. Subsequently, expenditure differentials between more and less prosperous/aspired tourists are decomposed into two components. First, group differences in expenditure covariates that represent tourists’ relative consumption behaviors and, second, differences in the estimated returns to those covariates, measuring potential third-degree price discrimination. Our results guide policy makers in the tourism industry to develop pricing strategies capable of generating mark-ups within all viable segmentations.

Does Financial Development Raise Tourism Demand? A Cross-Country Panel Evidence

This study examines the effects of bank and stock market development on three tourism demand indicators: number of tourist arrivals, expenditure to gross domestic product ratio, and expenditure per arrival. We analyze annual data spanning the period 1995-2018 for a sample of 207 countries. The theoretical contribution of this study is threefold: first, we assess a variety of financial development indicators; second, we employ cross-sectionally augmented distributed lags estimator that produces estimates robust to the dependence structure in the data; third, using data on a wide assortment of countries, we generalize the findings of several country-specific case studies. We observe that financial development affects both tourist arrivals and tourism expenditure positively. However, the gains in tourist arrivals are more significant relative to those in tourism expenditure. Furthermore, we find the responsiveness of tourism demand to financial development to vary with the income level.

DETERMINING EFFICIENCY OF TOURISM SECTOR IN CERTAIN EUROPEAN COUNTRIES AND REGIONS BY APPLYING DEA ANALYSIS

The paper presents research results of efficiency of tourism sector in certain European countries and regions obtained by applying DEA method. The primary goal of the paper is to determine to what extent tourism sector in certain European countries and regions is efficient in relation to set parameters, while the secondary goal is aimed at providing recommendations for its improvement. In relation to this, the methodology of the DEA analysis is based on the input and output parameters which were used to determine the efficiency. The input parameters included: number of hotels and similar accommodation capacities, number of rooms and number of bed places, whereas the output parameters included: number of inbound tourists, number of bed-nights and tourism expenditure during their stay abroad. One of the conclusions of the paper is that the total efficiency was shown in Croatia, Belgium, and Denmark, while the technical efficiency was also present in North Macedonia, France, Malta, the Netherlands, Portugal, and Spain.

Measuring the effects of tourists’ relative willingness to spend and third-degree price discrimination on inbound tourism expenditure differentials

Tourism expenditures are determined by a set of antecedents that reflect tourists’ willingness and ability to spend, and de facto incremental monetary outlays at which willingness and ability is transformed into total expenditures. Based on the neoclassical theoretical argument of utility-constrained expenditure minimization, we extend the current literature by applying a sustainability-based segmentation criterion, namely, the Legatum Prosperity IndexTM to the decomposition of a total expenditure differential into tourists’ relative willingness to spend and an upper bound of third-degree price discrimination, using mean-level and conditional quantile estimates. Our results indicate that understanding the price–quantity composition of international inbound tourism expenditure differentials assists agents in the tourism industry in their quest for profit maximization.

Internet penetration and international travel and tourism expenditure: The role of foreign exchange control

The total amount of digital travel sales worldwide increases significantly every year, yet previous studies on outbound tourism expenditures have scarcely discussed the role of foreign exchange control (Fxc) as a barrier to e-internationalization. In the era of e-commerce, residents of more than 40 economies are not allowed to buy or pay for foreign products by the Internet. This article, with data from 95 economies in the period 2012–2017, concludes that Internet penetration development increases international tourism expenditure. On the other hand, the control of foreign exchange decreases the relationship between internet penetration and tourism expenditure. Therefore, Fxc is clearly a barrier to electronic internationalization and tourism expenditure.

Examining the connection among national tourism expenditure and economic growth in Algeria

Tourism is one of the most important sectors for several researchers and decision makers, due to its influence on the world economic growth in the twenty-first century, making it as a source of competition between countries to a global industry for its effective strategic role in the development of countries. In this paper, we used two variables natural logarithm of per capita gross domestic product (GDP) and natural logarithm of per capita international and national tourism expenditure (ITE) to study the relationship between the tourism sector and economic growth in Algeria over the period of 1995–2017. We established with the unit root test with and without breakpoint that the variables are stationary in the first difference and there is a structural break in (ITE) and (GDP). Thus, with the presence of a breakpoint, we employed the methodology of Gregory–Hansen to avoid such issue, but we found that there was no evidence of cointegration with breakpoint, so then we used the vector autoregressive model (VAR). The model showed that the tourism sector has a positive and insignificant coefficient on the economic growth, while the economic growth factor has a positive and significant on the tourism sector. In the short run, there was a one-way causality from GDP to ITE at the level of 1%, confirming the economic-driven tourism growth hypothesis. Also, we found with Breitung and Candelon causality that there was same causality at the level of 10%.

Determining efficiency of tourism sector in certain European countries and regions by applying DEA analysis

The paper presents research results of efficiency of tourism sector in certain European countries and regions obtained by applying DEA method. The primary goal of the paper is to determine to what extent tourism sector in certain European countries and regions is efficient in relation to set parameters, while the secondary goal is aimed at providing recommendations for its improvement. In relation to this, the methodology of the DEA analysis is based on the input and output parameters which were used to determine the efficiency. The input parameters included: number of hotels and similar accommodation capacities, number of rooms and number of bed places, whereas the output parameters included: number of inbound tourists, number of bed-nights and tourism expenditure during their stay abroad. One of the conclusions of the paper is that the total efficiency was shown in Croatia, Belgium, and Denmark, while the technical efficiency was also present in North Macedonia, France, Malta, the Netherlands, Portugal, and Spain.