An econometric study of tourist arrivals in Aruba and its Implications

Keywords

Modeling; Dynamic; Elasticity; Policy formulation; Small economy

Abstract

The principal purpose of this study is to analyze econometric estimates in order to explain tourist arrivals to Aruba from the United States, The Netherlands and Venezuela. The study specified a dynamic econometric model for modeling short term as well as the long-term responses. It estimated both linear and log-linear functions, and it applied the Box–Cox statistical method to determine the appropriate functional form. The inclusion of Venezuela as a developing country permitted the comparison of the behavior of tourism demand in relatively rich and poor countries. The results indicated the extent to which cross-country behavior of demand differs with respect to changes in effective prices and exchange rates. This study can assist in the formulation of future macroeconomic policies as well as market and pricing strategies in a small or microstate economy.

Publication Date

1-1-2005

Original Citation

Croes, R., & Vanegas, M. (2005). An econometric study of tourist arrivals in Aruba and its Implications. Tourism Management, 26(6), 879-890.

Number of Pages

879-890

Document Type

Paper

Language

English

Source Title

Tourism Management

Volume

26

Issue

6

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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