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Leading indicator tourism forecasts

Kulendran, Nada and Witt, Stephen F (2003) Leading indicator tourism forecasts. Tourism Management, 24 (5). pp. 503-510. ISSN 0261-5177

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Leading indicators have been widely used in general business forecasting situations, but only rarely in a tourism context. In this study leading indicator transfer function (TF) models are developed to generate forecasts of international tourism demand from the UK to six major destinations. The out-of-sample forecasting accuracy is compared with the accuracy of forecasts generated by univariate ARIMA and error correction models (ECMs). The inclusion of a causal input within an ARIMA time series framework (TF model) does not result in an improvement in forecasting performance. The time series models outperform the ECM for short-term forecasting, but the ECM generates more accurate longer-term forecasts.

Item Type: Article
Uncontrolled Keywords: leading indicator, transfer function, ARIMA model, error correction model, forecast accuracy
Subjects: Historical > RFCD Classification > 340000 Economics
Historical > Faculty/School/Research Centre/Department > School of Economics and Finance
Depositing User: Ms Phung T Tran
Date Deposited: 18 Feb 2009 17:13
Last Modified: 12 Oct 2020 02:57
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Citations in Scopus: 59 - View on Scopus

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