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Free Content An analysis of visitors' expenditures in a tourist destination: OLS, quantile regression and instrumental variable estimators

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Abstract:

The impact of tourism on the local economy and employment has been widely reported in the literature through the use of regional or county expenditure multipliers. Indeed, the money that visitors spend in a community is likely to be the benefit that residents probably recognize most readily. Despite this, only a few studies have focused on the determinants of tourist expenditure at the individual or household level. This paper sheds further light on this issue. For this purpose, the authors use information gathered by interviewing visitors about their levels of expenditure. The analysis focuses on total expenditure and expenditures on lodging, restaurants, shopping and car rental, and uses OLS, quantile regression and instrumental variable techniques. The results suggest that the impact of socio-demographic and trip-related characteristics on tourist expenditures goes far beyond the mean effect. Furthermore, correcting for the endogeneity of some explanatory variables might be a worthwhile exercise.

Keywords: ENDOGENEITY; INSTRUMENTAL VARIABLES; ORDINARY LEAST SQUARES; QUANTILE REGRESSION; VISITORS' EXPENDITURE

Document Type: Research Article

DOI: http://dx.doi.org/10.5367/te.2012.0133

Publication date: June 1, 2012

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).

    Fast Track. Tourism Economics Fast Track papers have been peer-reviewed, revised and fully accepted for publication. However, although these are the final versions from the authors, they are unedited manuscripts and will undergo a rigorous editing process before their appearance in an issue of the journal. This means that the Fast Track manuscripts may not conform to journal style in terms of presentation, spelling and other usages. They may also contain errors of typography, grammar, spelling, referencing, etc, all of which will be corrected in the processes of copy-editing and proofreading.
    Tourism Economics operates a Fast Track online publication system so that papers can be published and made available almost immediately on final acceptance by the journal. Each Fast Track article is given a DOI. When the paper is assigned to an issue, this DOI will automatically be transferred to the article in the journal issue.
    Fast Track articles may be cited using the DOI. Citations should include the author's or authors' name(s), the title of the article, the title of the journal followed by the words Fast Track, the year of Fast Track publication and the DOI. For example:

    Smith, J. (2013), Article title, Tourism Economics Fast Track, DOI xxxxxxxx.

    Once the paper has been published in an issue of the journal, the DOI will automatically resolve to that final version and the article can be cited in accordance with normal bibliographical conventions.

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