New Insights into the Role of Personal Income on International Tourism
Author(s)
Waqas-Awan, Aon
Rossello-Nadal, Jaume
Santana-Gallego, Maria
Griffith University Author(s)
Year published
2020
Metadata
Show full item recordAbstract
This study aims to investigate the role of personal income in the income elasticity of tourism demand and, more specifically, the hypothesis that the richest and poorest individuals both tend to react less to changes in income than middle-class individuals, who tend to be more sensitive. To that end, this study applies different strategies within the context of a gravity model, using yearly data from 1995 to 2016 and bilateral tourism flows between 192 countries. Results show that income elasticity is determined to a significant extent by per capita income in the origin country and they confirm the inverted-U relationship ...
View more >This study aims to investigate the role of personal income in the income elasticity of tourism demand and, more specifically, the hypothesis that the richest and poorest individuals both tend to react less to changes in income than middle-class individuals, who tend to be more sensitive. To that end, this study applies different strategies within the context of a gravity model, using yearly data from 1995 to 2016 and bilateral tourism flows between 192 countries. Results show that income elasticity is determined to a significant extent by per capita income in the origin country and they confirm the inverted-U relationship between income elasticity and personal income. The study indicates that middle-income countries are more elastic than low- and high-income ones, while high-income countries display an inelastic or nonsignificant relationship.
View less >
View more >This study aims to investigate the role of personal income in the income elasticity of tourism demand and, more specifically, the hypothesis that the richest and poorest individuals both tend to react less to changes in income than middle-class individuals, who tend to be more sensitive. To that end, this study applies different strategies within the context of a gravity model, using yearly data from 1995 to 2016 and bilateral tourism flows between 192 countries. Results show that income elasticity is determined to a significant extent by per capita income in the origin country and they confirm the inverted-U relationship between income elasticity and personal income. The study indicates that middle-income countries are more elastic than low- and high-income ones, while high-income countries display an inelastic or nonsignificant relationship.
View less >
Journal Title
Journal of Travel Research
Note
This publication has been entered in Griffith Research Online as an advanced online version.
Subject
Commercial services
Marketing
Tourism
Social Sciences
Hospitality, Leisure, Sport & Tourism
Social Sciences - Other Topics
international tourism
income elasticity