Open AccessTOURISM DEMAND MODELING: PRICE AND INCOME ELASTICITY
Author(s) -
Ahmad Hudaiby Galih Kusumah
Publication year - 2018
Publication title -
journal of indonesian tourism, hospitality and recreation
Language(s) - English
Resource type - Journals
eISSN - 2654-3893
pISSN - 2654-4687
DOI - 10.17509/jithor.v1i1.13748
Subject(s) - price elasticity of demand , economics , income elasticity of demand , tourism , wealth elasticity of demand , price elasticity of supply , elasticity (physics) , demand curve , european union , microeconomics , international economics , geography , materials science , archaeology , composite material
This paper provides a tourism demand model that estimates the price elasticity of demand and income elasticity of demand in Australia, European Union (EU), and USA. The results show that Australia and EU tourists markets are price elastic, while USA market is slightly price inelastic. It indicates that both Australia and EU tourists markets are sensitive to the tourism price while USA market is not. The study also found that the income elasticity of demand from the three markets is relatively income inelastic. In other words, tourism demand in the three markets is unresponsive to a change in income.Keywords: Tourism Demand, Price ElasticityThis paper provides a tourism demand model that estimates the price elasticity of demand and income elasticity of demand in Australia, European Union (EU), and USA. The results show that Australia and EU tourists markets are price elastic, while USA market is slightly price inelastic. It indicates that both Australia and EU tourists markets are sensitive to the tourism price while USA market is not. The study also found that the income elasticity of demand from the three markets is relatively income inelastic. In other words, tourism demand in the three markets is unresponsive to a change in income.