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What Attracts Tourists to Paradise?

What Attracts Tourists to Paradise? by Evridiki Tsounta
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This paper investigates the determinants of tourism demand in the Eastern Caribbean Currency Union. We estimate the demand function in a panel setting using annual data from 1979 to 2005. Results show that tourism arrivals are significantly affected by economic developments in the source countries, while price considerations and external shocks (such as hurricanes and wars) are also important. Supply factors, such as developments in foreign direct investment and the number of airlines servicing a destination, are also found to be significant determinants of tourism demand.
International Monetary Fund; December 2008
20 pages; ISBN 9781452752099
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Title: What Attracts Tourists to Paradise?
Author: Evridiki Tsounta