Measuring price elasticities of demand for outbound tourism using competitiveness indices

Seetaram, N; Forsyth, P; Dwyer, L

Measuring price elasticities of demand for outbound tourism using competitiveness indices

Seetaram, N Forsyth, P Dwyer, L

Permalink

Publisher:: PERGAMON-ELSEVIER SCIENCE LTD
Publication Type:: Journal Article
Citation:: Annals of Tourism Research, 2016, 56, (C), pp. 65-79
Issue Date:: 2016-01-01

Closed Access

	Filename	Description	Size
	1-s2.0-S0160738315001449-main.pdf	Published version	321.48 kB	Adobe PDF	View/Open

Copyright Clearance Process

Recently Added
In Progress
Closed Access

This item is closed access and not available.

Full metadata record

Field	Value	Language
dc.contributor.author	Seetaram, N
dc.contributor.author	Forsyth, P
dc.contributor.author	Dwyer, L https://orcid.org/0000-0002-9797-1043
dc.date.accessioned	2022-08-17T19:32:51Z
dc.date.available	2022-08-17T19:32:51Z
dc.date.issued	2016-01-01
dc.identifier.citation	Annals of Tourism Research, 2016, 56, (C), pp. 65-79
dc.identifier.issn	0160-7383
dc.identifier.uri	http://hdl.handle.net/10453/160430
dc.description.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.
dc.language	English
dc.publisher	PERGAMON-ELSEVIER SCIENCE LTD
dc.relation.ispartof	Annals of Tourism Research
dc.relation.isbasedon	10.1016/j.annals.2015.10.004
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1504 Commercial Services, 1505 Marketing, 1506 Tourism
dc.subject.classification	Sport, Leisure & Tourism
dc.title	Measuring price elasticities of demand for outbound tourism using competitiveness indices
dc.type	Journal Article
utslib.citation.volume	56
utslib.for	1504 Commercial Services
utslib.for	1505 Marketing
utslib.for	1506 Tourism
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
utslib.copyright.status	closed_access	*
dc.date.updated	2022-08-17T19:32:50Z
pubs.issue	C
pubs.publication-status	Published
pubs.volume	56
utslib.citation.issue	C

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.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/160430