Economic effects of advertising on tourism demand: a case study

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Divisekera, Sarath and Kulendran, Nada (2006) Economic effects of advertising on tourism demand: a case study. Tourism Economics, 12 (2). pp. 187-205. ISSN 1354-8166


The objective of this study is to quantify the long-term effects of advertising on tourism demand. A single equation demand model is specified which includes advertising as an explanatory variable along with other economic determinants of demand, prices and incomes. Using the Phillip-Hanson procedure, long-run elasticities of demand are estimated for Australian tourism from its major markets - Japan, New Zealand, the UK and the USA. The results indicate that Japanese and New Zealand tourists are more responsive to advertising than UK and US tourists and that they are also highly sensitive to prices compared with UK and US tourists.

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Item type Article
DOI 10.5367/000000006777637502
Official URL
Subjects Historical > Faculty/School/Research Centre/Department > School of Economics and Finance
Historical > FOR Classification > 1599 Other Commerce Management, Tourism and Services
Historical > FOR Classification > 1401 Economic Theory
Keywords ResPubID10780, economics of tourism promotion, economics of advertising, tourism demand modelling, effects of tourism advertising
Citations in Scopus 27 - View on Scopus
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