Work detail

The Determinants of International Tourism Demand

Author: Bc. Jana Vencovská
Year: 2014 - summer
Work type: Bachelors
Language: English
Pages: 65
Awards and prizes:
Abstract: This bachelor thesis focuses on identifying the key
factors affecting international tourism
demand. Additionally, it provides an assessment of
the economic impact of tourism, which is
followed by an overview of possible interpretations
of the terms “tourism” and “tourist” and
their evolution in time. Based on a review of exist
ing literature, the next part discusses the
meaning of the term “tourism demand”, the ways how
this demand can be measured and on
its main determinants. The last chapter of the thes
is is dedicated to an econometric analysis
of the determinants of the demand for tourism to th
e Czech Republic from thirty-eight
different countries. The data on the number of gues
ts registered in collective
accommodation establishments collected by the Czech
Statistical Office was used as a
measure of tourism demand. The period between years
2000 – 2012 was investigated. The
model was specified in a dynamic form, which allowe
d us to account for the Word-of-Mouth
(WoM) effect and to reflect the importance of touri
sts’ loyalty. The Arellano-Bond
generalized method of moments (GMM) estimation meth
od was used to estimate the
model. One of the main conclusions of the analysis
is that 31% of the tourist arrivals are
attributable to habit formation and the WoM effect.
The results further show that tourism
demand is both income and price inelastic which mea
ns that it is not heavily dependent on
the economic situation in the tourist generating co


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