Determinants of Tourism Demand in Context of Environmental Quality

Year 2023, Volume: 11 Issue: 2, 294 - 316, 01.06.2023

Dilek Özdemir , Bengü Tosun

https://doi.org/10.30519/ahtr.1096210

Abstract

Tourism is a sector that contributes to the economic development of both developed and developing countries, and with this structure, it contains the environmental, social, and economic dimensions of sustainable development. This study aims to estimate the effects of environmental quality and other determinants on international tourism demand. Within the scope of the 2008–2017 period, the tourism demand from 27 different countries to the top 10 countries that attract the most tourists worldwide was examined using the multidimensional panel gravity model. The effects of environmental, economic, and non-economic indicators on tourism demand were investigated using Poisson pseudo-maximum likelihood (PPML) estimation methods. The findings showed that the low environmental quality significantly reduces tourism demand. In addition, tourist income, common language, and common border had positive effects on tourism demand, while distance, relative price, and visa restrictions had negative effects. This study offers recommendations for policymakers and other stakeholders and contributes to the literature on tourism economics and the environment.

Keywords

International tourism demand, Environmental quality, Poisson Pseudo-Maximum Likelihood estimator, Gravity model, Multidimensional panel data model

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