MODELING DOMESTIC TOURISM DEMAND IN GALICIA USING THE ARDL APPROACH
Tourism is one of the most important sectors for the economy of Galicia (North-west of Spain). The aim of our study is to find the most important socio-economic factors that statistically influence the domestic tourism demand for Galicia. For this purpose, we make use of the ARDL bounds testing...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
University of Algarve, ESGHT/CINTURS
2011-01-01
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| Series: | Tourism & Management Studies |
| Subjects: | |
| Online Access: | https://tmstudies.net/index.php/ectms/article/view/334/551 |
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| Summary: | Tourism is one of the most important sectors for
the economy of Galicia (North-west of Spain). The
aim of our study is to find the most important
socio-economic factors that statistically influence
the domestic tourism demand for Galicia. For this
purpose, we make use of the ARDL bounds testing
cointegration approach (Pesaran et al., 2001). Once
the main influencing factors are known, we
construct an econometric model using a general-tospecific ARDL modeling procedure. The estimated
coefficients of the model allow us to quantify the
impact of the influencing factors on the Galician
domestic tourism demand. According to our results,
the income elasticity of demand tends to be unitary;
that is, an increase of 1 per cent in the income of
Spanish residents produces a rise of around 1 per
cent in the domestic tourism demand. Moreover,
the Eastern vacations and the celebration of the
Holy Year increase the tourism demand by around
11 per cent. Finally, the economic crisis and the
differential of inflation between Galicia and the rest
of Spain decrease the tourism demand in a 7.5 per
cent. |
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| ISSN: | 2182-8466 |