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Economics of tourist's consumption behaviour: Some evidence from Australia

Divisekera, Sarath (2010) Economics of tourist's consumption behaviour: Some evidence from Australia. Tourism Management, 31 (5). pp. 629-636. ISSN 0261-5177

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Abstract

This study analyses the consumption behaviour of international tourists from Australia’s four major source markets: New Zealand, UK, USA and Japan. A preliminary analysis of their consumption expenditures reveals intriguing similarities as well as diversities in consumption patterns. These are sought to understand in terms of the utility-maximising framework in which observed differences in prices and incomes play a key role. Based on the neoclassical economic theory of consumer behaviour, models incorporating five major components of tourist consumption – Accommodation, Food, Transport, Shopping and Entertainment- are estimated. Overall, the level of tourist consumption is found to be highly sensitive to incomes but less sensitive to prices. The low price sensitivity suggests tourists perceive the commodities as necessities and may also reflect their captivity at the destination, masking the underlying true price sensitivities. An important dimension underlying these findings is the possible lack of information about the destination leading to sub-optimal consumption choices.

Item Type: Article
Uncontrolled Keywords: ResPubID18064. consumer behaviour, international tourists, consumption expenditures, tourism demand, Australia
Subjects: Faculty/School/Research Centre/Department > School of Economics and Finance
FOR Classification > 1402 Applied Economics
FOR Classification > 1506 Tourism
SEO Classification > 9099 Other Commercial Services and Tourism
Depositing User: VUIR
Date Deposited: 17 Oct 2011 00:22
Last Modified: 24 Feb 2015 06:26
URI: http://vuir.vu.edu.au/id/eprint/4257
DOI: 10.1016/j.tourman.2009.07.001
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Citations in Scopus: 4 - View on Scopus

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