EFFECT OF INCOME AND PRICE ON INTERNATIONAL TOURISM

The aim of this study was to investigate the effect of income and price on the demand for international tourism. Numerous empirical studies carried out over three decades have investigated their effect, but their results are quite varied. Therefore, the approach taken has been to integrate these findings and to examine whether inter-study differences account for any of the variability. The results indicate that estimated income elasticities of demand do vary as a function of certain substantive and methodological features. The results on price elasticities, however, yielded little information. Price is a complex factor in international tourism. The diverse attempts to define price appear to account for some of the variation in findings.