chapter  3
32 Pages


The aim of this chapter is to consider the models which have been used to estimate tourism demand in the context of both the theoretical discussion of the previous chapter and developments in consumer demand theory which will be introduced as the chapter proceeds. Empirical studies can help to explain the level and pattern of tourism demand and its sensitivity to changes in the variables upon which it depends, for example income in origin areas and relative rates of infl ation and exchange rates between different origins and destinations. Such information is useful for public sector policy-making and the private sector. However, accurate estimates can usually be obtained only if the theoretical specifi cation of the underlying model is appropriate. Hence, explicit consideration of the consumer decision-making underpinning empirical models is important in ensuring that the estimates which are provided are neither inaccurate nor misleading in their policy implications.