Measuring price elasticities of demand for outbound tourism using competitiveness indices.

Seetaram, N., Forsyth, P. and Dwyer, L., 2016. Measuring price elasticities of demand for outbound tourism using competitiveness indices. Annals of Tourism Research, 56 (1), 65 - 79.

Full text available as:

[img] PDF
Measuring Elasticties using Competitiveness Indices.pdf - Accepted Version
Restricted to Repository staff only until 1 February 2017.

416kB

DOI: 10.1016/j.annals.2015.10.004

Abstract

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.

Item Type:Article
ISSN:1873-7722
Subjects:UNSPECIFIED
Group:Faculty of Management
ID Code:22961
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:08 Dec 2015 13:30
Last Modified:02 Aug 2016 11:53

Downloads

Downloads per month over past year

More statistics for this item...
Repository Staff Only -