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Tourism demand and economic growth in Spain: New insights based on the yield curve.

Santamaria, D. and Filis, G., 2019. Tourism demand and economic growth in Spain: New insights based on the yield curve. Tourism management, 75 (December), 447-459.

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DOI: 10.1016/j.tourman.2019.06.008


We examine for the first time the dynamic relationship between tourism growth and expected macroeconomic conditions of the destination country, employing a DCCGARCH model. Our focus is on the Spanish economy and we collect monthly tourist arrival data from five key origin countries, as well as, from around the world between 1998-2017. We capture expected macroeconomic conditions using the Spanish term structure of interest rates. Our findings suggest that the tourism-expected macroeconomic conditions relationship is time-varying without any country-specific differences in the behaviour of the correlations. Importantly, we report that positive correlations coincide with a regime shift in the Spanish economy; whereas negative correlations are evident when expected economic conditions are stable. We further show that the aforementioned relationship is influenced by key geopolitical and economic events (the 2001 terrorist attacks, the Global Financial Crisis and the ECB’s quantitative easing programme). We finally report policy implications deriving from our findings.

Item Type:Article
Uncontrolled Keywords:Tourism Demand; Yield Curve; DCC-GARCH; Term Structure of Interest Rates; Economic Growth; Spain
Group:Bournemouth University Business School
ID Code:32393
Deposited By: Symplectic RT2
Deposited On:14 Jun 2019 15:58
Last Modified:14 Mar 2022 14:16


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