Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320172 
Year of Publication: 
2021
Citation: 
[Journal:] The European Journal of Comparative Economics (EJCE) [ISSN:] 1824-2979 [Volume:] 18 [Issue:] 2 [Year:] 2021 [Pages:] 251-266
Publisher: 
University Carlo Cattaneo (LIUC), Castellanza
Abstract: 
Europe is a notable tourism region and so international tourist arrivals are getting more crucial day by day for attraction center countries. Besides many economic factors, exchange rate is also main economic determining factor of tourism demand. This paper investigates the asymmetric effects of the real exchange rate on tourism demand by utilizing asymmetric VAR methodology for 10 most popular destinations in Europe. According to empirical results, there is a negative relationship between the real exchange rate and tourism demand, with mixed effects for a few countries. The effect of the currency appreciation on the total number of tourist arrivals is more greatly than the currency depreciation for France, Netherlands, Poland and Turkey. Austria, Greece and Italy are also affected asymmetrically from the currency rate in the long term but not short term. The tourist arrivals in Spain, Germany and the UK are not asymmetrically sensitive to exchange rate. The results show that decrease in exchange rate have greater impact on the tourism demand compared to increase in the exchange rate in asymmetrically affected countries.
Subjects: 
Real exchange rate
Tourism demand
Asymmetric effect
VAR
JEL: 
Z32
C32
F3
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nd Logo
Document Type: 
Article

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