Divisekera, Sarath (2006) Domestic Demand for Australian Tourism: An Almost Ideal Demand System. In: 'To the city and beyond...' : proceedings of the 16th annual CAUTHE conference 6 - 9 February 2006 Melbourne Australia. Whitelaw, Paul A and O'Mahony, Barry G, eds. School of Hospitality, Tourism and Marketing; Victoria University, Footscray, Victoria, pp. 1786-1801.

Abstract

The objective of this study is to estimate the economic parameters underlying the demand for domestic tourism by Australians. This is achieved by estimating a system of nonlinear demand equations based on the Almost Ideal Demand System. The necessary data is obtained from the National Visitor Surveys and overnight tourist expenditure data is aggregated into five broad commodity groups, viz Food, Accommodation, Transportation, Shopping, and Entertainment. Two demand systems are estimated: one examines the aggregate demand and the other regional demand distinguished by the state of origin. A comparison of elasticities derived from the two models show considerable variations in the magnitudes of demand elasticities both between national and regional models as well as across various regions.

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