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

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


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.

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Item type Article
DOI 10.1016/j.tourman.2009.07.001
Official URL
Subjects Historical > Faculty/School/Research Centre/Department > School of Economics and Finance
Historical > FOR Classification > 1402 Applied Economics
Historical > FOR Classification > 1506 Tourism
Historical > SEO Classification > 9099 Other Commercial Services and Tourism
Keywords ResPubID18064. consumer behaviour, international tourists, consumption expenditures, tourism demand, Australia
Citations in Scopus 57 - View on Scopus
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