Authors: Mervar, Andrea¹; Payne, James E.²

Source: Tourism Economics, Volume 13, Number 3, September 2007 , pp. 407-420(14)

Publisher: IP Publishing Ltd

Abstract:

Given that tourism is a significant source of export revenues for Croatia, it is vital for policymakers to understand the factors affecting foreign tourism demand for Croatian destinations. This study provides long-run elasticity estimates associated with aggregate foreign tourism demand for Croatian destinations in the period 1994:1-2004:4 using the autoregressive distributed lag (ARDL) approach. Foreign tourism demand is proxied by the aggregate number of foreign overnight stays in Croatia. The long-run elasticity estimates indicate that tourism demand is positive and highly elastic with respect to the income of tourist-generating countries. Moreover, tourism demand was adversely affected by the political conflicts in the 1990s. The real exchange rate and transportation costs are not statistically significant determinants of foreign tourism demand.

Keywords: TOURISM DEMAND; COINTEGRATION; ARDL; CROATIA

Document Type: Research article

DOI: http://dx.doi.org/10.5367/000000007781497764

Affiliations: 1: Institute of Economics, Trg J.F. Kennedy 7, 10000 Zagreb, Croatia., Email: mervar@eizg.hr. 2: Department of Economics, Illinois State University, Normal, IL 61790-4200, USA., Email: jepayne@ilstu.edu.

Publication date: 2007-09-01

More about this publication?

• Tourism Economics, published bimonthly, is a peer-reviewed journal devoted to the economics and finance of tourism worldwide. Articles address the components of the tourism product (accommodation; restaurants; merchandizing; attractions; transport; entertainment; tourist activities); and the economic organization of tourism at micro and macro levels (market structure; role of public/private sectors; community interests; strategic planning; marketing; finance; economic development).

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