The elasticity of tourist arrivals to oil prices
Bibliographic Data
| ID | 21689403 |
|---|---|
| Authors | David Boto‐garcía (0000-0001-8065-0983, Universidad de Oviedo, corresponding author) |
| Year | 2025 |
| Publication date | 2025-07-28 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Tourism Economics (JOURNAL) |
| Journal identifiers | ISSN: 1354-8166 • E-ISSN: 2044-0375 |
| Publisher | SAGE Publications (PUBLISHER • US) |
| DOI | 10.1177/13548166251364305 |
| OpenAlex | W4412735363 |
| Language | EN |
| References cited | 17 |
This paper employs a novel identification strategy to provide a consistent estimate of the elasticity of tourist arrivals with respect to oil prices. We exploit OPEC announcements about future production as exogenous shocks to oil prices within an instrumental variables’ framework. Using monthly panel data on international and domestic tourist arrivals for 23 European countries from 2005:1 to 2019:12, we estimate an average elasticity of −0.2 for both segments. Auxiliary analyses reveal the existence of relevant heterogeneity across geographical areas. When considering dynamic effects using instrumental panel local projections (LP-IV), we find evidence of long-lasting negative impacts of oil price spikes on both international and domestic tourism inflows. The use of an exogenous instrument for oil prices addresses endogeneity concerns and underscores the importance of isolating supply-driven price changes to obtain unbiased estimates of the transportation cost elasticity of tourism demand
Agricultural economics · Business · Econometrics · Economics · Geography · Microeconomics · Monetary economics · Price elasticity of demand · Tourism · Diverse Aspects of Tourism Research · Energy, Environment, and Transportation Policies · Market Dynamics and Volatility
Estimation and Inference of Impulse Responses by Local Projections
Control Function Methods in Applied Econometrics
A Meta-Analysis of International Tourism Demand Elasticities
Unit root tests in panel data
How important are prices in long-haul travel? Evidence from New Zealand
A Robust Test for Weak Instruments
A critical review of tourism and oil
Oil prices, tourism income and economic growth
Implications of a long-term increase in oil prices for tourism
On the volatilities of tourism stocks and oil
Carbon price shocks and tourism demand
| Citation velocity | historical |
|---|---|
| Highly cited | No |