Measuring price elasticities of demand for outbound tourism using competitiveness indices

Authors: Seetaram, N., Forsyth, P. and Dwyer, L.

http://eprints.bournemouth.ac.uk/22961/

Journal: Annals of Tourism Research

Volume: Volume 56, Pages 65–79

Issue: 1

Pages: 65-79

Publisher: Elsevier

ISSN: 1873-7722

DOI: 10.1016/j.annals.2015.10.004

The real exchange rate (REX) has long been used as the proxy for prices in tourism demand models. However it has limitations, particularly when it comes to models of outbound tourism. As an alternative, a price competitiveness index (PCI) is developed and used as a proxy for prices in a model of outbound tourism from Australia. Results obtained show that while REX is statistically insignificant and yields a price elasticity of −0.002, PCI is significant and generates a price elasticity of −1.07. The results obtained show that PCI outperforms REX as the preferred price variable in modelling outbound demand on both theoretic and empirical grounds. Furthermore, this index can be used to monitor the inter-temporal competitiveness of a destination.

This data was imported from Scopus:

Authors: Seetaram, N., Forsyth, P. and Dwyer, L.

http://eprints.bournemouth.ac.uk/22961/

Journal: Annals of Tourism Research

Volume: 56

Pages: 65-79

ISSN: 0160-7383

DOI: 10.1016/j.annals.2015.10.004

© 2015 Elsevier Ltd. The real exchange rate (REX) has long been used as the proxy for prices in tourism demand models. However it has limitations, particularly when it comes to models of outbound tourism. As an alternative, a price competitiveness index (PCI) is developed and used as a proxy for prices in a model of outbound tourism from Australia. Results obtained show that while REX is statistically insignificant and yields a price elasticity of -0.002, PCI is significant and generates a price elasticity of -1.07. The results obtained show that PCI outperforms REX as the preferred price variable in modelling outbound demand on both theoretic and empirical grounds. Furthermore, this index can be used to monitor the inter-temporal competitiveness of a destination.

This source preferred by Neelu Seetaram

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

Authors: Seetaram, N., Forsyth, P. and Dwyer, L.

http://eprints.bournemouth.ac.uk/22961/

Journal: ANNALS OF TOURISM RESEARCH

Volume: 56

Pages: 65-79

ISSN: 0160-7383

DOI: 10.1016/j.annals.2015.10.004

The data on this page was last updated at 04:42 on September 25, 2017.