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This paper calculates tourism source market structure indicators and investigates their impact on the international tourism demand for Antalya of Turkey. Tourism source market structure may influence tourism demand depending on its consequences regarding competitiveness and risk structure. To determine this influence, this paper estimates tourism demand functions within the framework of the two-stage system generalized method of moments (GMM). The tourism source market structure variables were calculated by considering the number of tourists by nationality and the estimations are based on the datasets of 37 source countries for 2001–2019 years. According to the calculated market structure indicators, the tourism source market concentrated in the early 2000s and diversified in the last years of the research period. Findings of the system GMM indicated that the tourism source market concentration boosts and diversification weakens the tourism demand for Antalya. In other words, tourism demand, which comes predominantly or intensively from a small number of countries, increases this demand.

Does tourism source market structure affect international tourism demand for Antalya? A panel generalized method of moments analysis