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Distance Matters: An Assessment of International Tourism Demand in Spain

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Abstract:

This article studies international tourist flows to Spain using data panel techniques. Most standard models only include income and relative cost of living as the main explanatory variables of the international tourism demand. By contrast, we show that geographic distance, interpreted as a proxy for the cross-sectional variation in travel cost among origin countries, is a very important variable in determining international tourism flows to Spain. The inclusion of this variable dramatically increases the explanatory power of the model and hardly changes the estimated value of income and price elasticities, which are consistent with those obtained in the literature.

Keywords: DISTANCE; INTERNATIONAL TOURISM DEMAND; PANEL DATA ESTIMATION; SPAIN

Document Type: Research Article

DOI: https://doi.org/10.3727/108354210X12724863327687

Publication date: 2010-07-01

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  • The aim of Tourism Analysis is to promote a forum for practitioners and academicians in the fields of Leisure, Recreation, Tourism, and Hospitality (LRTH). As a interdisciplinary journal, it is an appropriate outlet for articles, research notes, and computer software packages designed to be of interest, concern, and of applied value to its audience of professionals, scholars, and students of LRTH programs the world over.
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