nep-tur New Economics Papers
on Tourism Economics
Issue of 2017‒12‒18
one paper chosen by
Laura Vici
Università di Bologna

  1. The Expenditure of Tourist at the level of Destinations: An application of Spatial Econometrics By Andrés Artal-Tur; Luisa Alamá-Sabater

  1. By: Andrés Artal-Tur (Economics Department, Technical University of Cartagena, Spain); Luisa Alamá-Sabater (Iidl and Economics Department, Universitat Jaume I, Castellón, Spain)
    Abstract: In this paper we introduce the geographical dimension in the study of tourist expenditure. By relying on spatial statistics and spatial econometrics framework, we account for spatial dependence patterns arising in the modelling of factors driving spendings of tourists at destinations. In doing so, we extend the scope in traditional microeconometric models, also computing indirect effects arising in the spatial model. We provide evidence on the performance of the spatial expenditure approach by using a data set of around 100000 questionnaires of international visitors reaching 1872 destinations in Spain in year 2014. We employ five types of spatial model specifications when testing our tourist expenditure function. We also account for endogeneity issues by running GS2SLS and SPGMM spatial equations. Results confirm the relevance of the proposed methodology in the study of tourist expenditure behaviour in space. Regarding the main results of the econometric modeling section, length of stay appears to be the most important determinant of tourist expenditure, as well as trip characteristics and the type of accommodation chosen. The relevance of spatial effects also are being explained by the indirect spillovers that have shown that agglomeration and spatial interaction effects in tourist expenditure clusters in Spain would be responsible of around 15% of average direct spending.
    Keywords: tourist expenditure, spatial dependence, endogeneity, spillover effects, tourism policy.
    JEL: C31 R12
    Date: 2017

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