Immigration and international inbound tourism

Empirical evidence from Australia

Research output: Contribution to journalArticle

49 Citations (Scopus)

Abstract

Immigration can potentially influence tourism flows. However, in spite of the vast number of studies on tourism demand modelling, the immigration-tourism linkage has not received much attention in the empirical literature. This paper seeks to address this gap. A dynamic demand model is developed and estimated using data from 1980 to 2008 for the 15 main markets of Australia. The explanatory variables included are income, own price, price of a substitute destination, airfare and immigration. The estimation results empirically establish the connection between immigration and inbound tourism. The short run and long-run immigration elasticities generated are 0.028 and 0.09 respectively. Additionally this paper demonstrates that omission of prices of substitutes affects the value of the own price elasticity of demand. The results have implications for future research and for stakeholders who can improve the efficiency of their planning exercises by taking into account additional information on immigration trends.

Original languageEnglish
Pages (from-to)1535-1543
Number of pages9
JournalTourism Management
Volume33
Issue number6
DOIs
Publication statusPublished - Dec 2012
Externally publishedYes

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international tourism
immigration
Elasticity
Tourism
tourism
evidence
Planning
elasticity
demand
price elasticity
Immigration
International tourism
Empirical evidence
stakeholder
income
efficiency
planning
market
price
trend

Cite this

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title = "Immigration and international inbound tourism: Empirical evidence from Australia",
abstract = "Immigration can potentially influence tourism flows. However, in spite of the vast number of studies on tourism demand modelling, the immigration-tourism linkage has not received much attention in the empirical literature. This paper seeks to address this gap. A dynamic demand model is developed and estimated using data from 1980 to 2008 for the 15 main markets of Australia. The explanatory variables included are income, own price, price of a substitute destination, airfare and immigration. The estimation results empirically establish the connection between immigration and inbound tourism. The short run and long-run immigration elasticities generated are 0.028 and 0.09 respectively. Additionally this paper demonstrates that omission of prices of substitutes affects the value of the own price elasticity of demand. The results have implications for future research and for stakeholders who can improve the efficiency of their planning exercises by taking into account additional information on immigration trends.",
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Immigration and international inbound tourism : Empirical evidence from Australia. / Seetaram, Neelu.

In: Tourism Management, Vol. 33, No. 6, 12.2012, p. 1535-1543.

Research output: Contribution to journalArticle

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