Asymmetries in European inbound and outbound tourism

Normal, luxury or inferior good? Fresh evidence from a quantile regression

Bibliographic Data

ID21864641
AuthorsAngeliki N Menegaki (0000-0003-0506-1243, Hellenic Open University), ANGELIKI MENEGAKI, Aviral Kumar Tiwari (0000-0002-1822-9263, Université d'Orléans), Aviral Tiwari, George M Agiomirgianakis (0000-0003-4977-2178, Hellenic Open University), George Agiomirgianakis
Year2020
Volume25
Pages2508
Publication date2020-05-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEuropean Journal of Tourism Research (JOURNAL)
Journal identifiersISSN: 1994-7658 • E-ISSN: 1314-0817
PublisherVarna University of Management (PUBLISHER • BG)
DOI10.54055/ejtr.v25i.423
OpenAlexW3042964551
LanguageEN
Citations received7
References cited14

This paper studies aggregate inbound and outbound tourist demand in Europe for 1995-2015 with a new panel quantile regression approach. It employs tourist arrivals, tourist receipts and tourist expenditure. Besides real domestic income and real exchange rate, the demand is instrumented with environmental degradation and trade openness. Results show that tourism behaves like a normal good when tourist arrivals are used as a predictor of demand and a luxury good when tourism revenue is used instead. Conversely, tourism behaves like an inferior good when tourist expenditure is used.The results suggest that for inbound tourism in Europe to remain competitive, prices should be low to attract inbound tourism while tourism expenditure subsidization programmes should take place for European residents to be able to afford outbound tourism

Business · Econometrics · Economics · Geography · Market economy · Openness to experience · Panel data · Quantile regression · Revenue · Subsidy · Tourism · Cruise Tourism Development and Management · Diverse Aspects of Tourism Research · Energy, Environment, Economic Growth · Finance