Long-Haul Flights and Tourist Arrivals

31 Pages Posted: 6 Jul 2011 Last revised: 11 Jul 2011

Sigbjorn Tveteras

CENTRUM Catolica, Pontificia Universidad Catolica del Peru

Kristin Helen Roll

University of Stavanger

Date Written: 2011

Abstract

Travel cost is a barrier for many tourists who wish to visit faraway destinations. This affects exotic tourism destinations located far from key markets, since the great majority of travelers from these markets will find travel cost prohibitively high. However, exotic tourism destinations might attract more visitors if they are able to improve international air connectivity. The objective of this study is to test whether an increase in the number of long-haul flights has positive impacts on the number of tourist arrivals. We estimate a dynamic demand model using panel data of tourist arrivals to Peru and flight connections from 75 origin countries spanning the years 2004 to 2009, and find significant positive direct and indirect effects on demand for air travel to Peru of nonstop long-haul flights.

Keywords: Air travel demand, nonstop flights, tourism arrivals, Peru

JEL Classification: L83, R41

Suggested Citation

Tveteras, Sigbjorn and Roll, Kristin Helen, Long-Haul Flights and Tourist Arrivals (2011). Available at SSRN: https://ssrn.com/abstract=1879410 or http://dx.doi.org/10.2139/ssrn.1879410

Sigbjorn Tveteras (Contact Author)

CENTRUM Catolica, Pontificia Universidad Catolica del Peru ( email )

Alomia Robles 125
Lima, Lima 33
Peru

Kristin Helen Roll

University of Stavanger ( email )

PB 8002
Stavanger, 4036
Norway

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