What Attracts Tourists to Paradise?

22 Pages Posted: 18 Dec 2008

See all articles by Evridiki Tsounta

Evridiki Tsounta

International Monetary Fund (IMF) - Western Hemisphere Department

Date Written: December 2008

Abstract

This paper investigates the determinants of tourism demand in the Eastern Caribbean Currency Union. We estimate the demand function in a panel setting using annual data from 1979 to 2005. Results show that tourism arrivals are significantly affected by economic developments in the source countries, while price considerations and external shocks (such as hurricanes and wars) are also important. Supply factors, such as developments in foreign direct investment and the number of airlines servicing a destination, are also found to be significant determinants of tourism demand.

Keywords: Tourism, Caribbean, Eastern Caribbean Currency Union, Demand, Supply, External shocks, Prices, Foreign direct investment, Economic models

Suggested Citation

Tsounta, Evridiki, What Attracts Tourists to Paradise? (December 2008). IMF Working Paper No. 08/277, Available at SSRN: https://ssrn.com/abstract=1316745

Evridiki Tsounta (Contact Author)

International Monetary Fund (IMF) - Western Hemisphere Department ( email )

700 19th Street NW
Washington, DC 20431
United States

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