What are the Empirical Determinants of International Tourist Arrivals and Expenditures? An Empirical Application to the Case of Sao Tome and Principe
The link between tourism and growth is very important for some countries, especially small island countries like São Tomé and Príncipe. This paper investigates the empirical determinants of tourism outcomes (tourist arrivals and expenditures) and u...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/312691584467066838/What-are-the-Empirical-Determinants-of-International-Tourist-Arrivals-and-Expenditures-An-Empirical-Application-to-the-Case-of-Sao-Tome-and-Principe http://hdl.handle.net/10986/33449 |
| Summary: | The link between tourism and growth is
very important for some countries, especially small island
countries like São Tomé and Príncipe. This paper
investigates the empirical determinants of tourism outcomes
(tourist arrivals and expenditures) and uses the findings to
assess the performance of the tourism sector in São Tomé and
Príncipe. The paper confirms most of the results found in
the literature on the general determinants of tourism.
Tourist arrivals increase with the gross domestic product
and exports of the host country, as well as with increased
air connectivity. Real exchange rate variations affect
tourist decisions, and tourism outcomes have a persistent
effect. The paper also finds that a positive attitude toward
acceptance of lesbian, gay, bisexual, and transgender people
increases tourist arrivals. Unfortunately, the relationship
between digital presence and tourism outcomes could not be
tested. The paper shows that São Tomé and Príncipe can do
better in tourist arrivals, but it already has good
performance on expenditures per tourist. Improving air
connectivity is key to attracting more tourists, and demand
for tourism is not very price sensitive, implying that the
strategy to focus on high-spending tourists is the correct one. |
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