Premium
Tourism price causalities: Case of an Adriatic country
Author(s) -
Gricar Sergej,
Bojnec Stefan
Publication year - 2017
Publication title -
international journal of tourism research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.155
H-Index - 58
eISSN - 1522-1970
pISSN - 1099-2340
DOI - 10.1002/jtr.2163
Subject(s) - autoregressive model , tourism , economics , granger causality , econometrics , hospitality , exchange rate , hospitality industry , value (mathematics) , macroeconomics , financial economics , microeconomics , monetary economics , mathematics , statistics , political science , law
The aim of this article is to investigate the linearities and causalities between Slovenian tourism and macroeconomic aggregates. The monthly time‐series data for the drivers of the rise in the Slovenian hospitality industry prices are tested in the vector autoregressive framework and smooth transition autoregressive model during the 3 specific subperiods. The results are robust for the applied linear methods on prices and value‐added tax sensitive tourist demand and for the applied nonlinear methods on exchange rate and labor costs. Granger causality tests confirmed 5 correlations in the set of 3 hypotheses. Input costs are significant drivers for the rise of the Slovenian hospitality industry prices.