Air Passenger Duty and Outbound Tourism Demand from the United Kingdom

This source preferred by Neelu Seetaram

Authors: Seetaram, N., Song, H. and Page, S.J.

http://eprints.bournemouth.ac.uk/22553/

Journal: Journal of Travel Research

DOI: 10.1177/0047287513500389

On November 1, 1994 an Air Passenger Duty (APD) was introduced in the United Kingdom, and since, this tax continues to be controversial. This article examines the effect of the ADP on UK outbound tourism demand for 10 international destinations. An autoregressive distributed lag model is developed and income, price, and tax elasticities are estimated. The income and price elasticities obtained, ranged between 0.36 and 4.11 and −0.05 and −2.02, respectively. The estimated tax elasticities suggest that the implementation of APD had a negative effect on UK outbound travel for five destinations and the demand is inelastic to changes in taxes although the magnitudes vary across destinations. The general message is that although the stated objective of APD is to reduce travel and associated carbon emissions, the effectiveness of APD, however, has been marginal; travelers are prepared to pay more in the main to maintain their demand.

This data was imported from Scopus:

Authors: Seetaram, N., Song, H. and Page, S.J.

http://eprints.bournemouth.ac.uk/22553/

Journal: Journal of Travel Research

Volume: 53

Issue: 4

Pages: 476-487

eISSN: 1552-6763

ISSN: 0047-2875

DOI: 10.1177/0047287513500389

On November 1, 1994 an Air Passenger Duty (APD) was introduced in the United Kingdom, and since, this tax continues to be controversial. This article examines the effect of the ADP on UK outbound tourism demand for 10 international destinations. An autoregressive distributed lag model is developed and income, price, and tax elasticities are estimated. The income and price elasticities obtained, ranged between 0.36 and 4.11 and -0.05 and -2.02, respectively. The estimated tax elasticities suggest that the implementation of APD had a negative effect on UK outbound travel for five destinations and the demand is inelastic to changes in taxes although the magnitudes vary across destinations. The general message is that although the stated objective of APD is to reduce travel and associated carbon emissions, the effectiveness of APD, however, has been marginal; travelers are prepared to pay more in the main to maintain their demand. © 2013 SAGE Publications.

This data was imported from Web of Science (Lite):

Authors: Seetaram, N., Song, H. and Page, S.J.

http://eprints.bournemouth.ac.uk/22553/

Journal: JOURNAL OF TRAVEL RESEARCH

Volume: 53

Issue: 4

Pages: 476-487

eISSN: 1552-6763

ISSN: 0047-2875

DOI: 10.1177/0047287513500389

The data on this page was last updated at 04:46 on November 24, 2017.