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The real exchange rate (REX) has long been used as the proxy for prices in tourism demand models. However it has limitations, particularly when it comes to models of outbound tourism. As an alternative, a price competitiveness index (PCI) is developed and used as a proxy for prices in a model of outbound tourism from Australia. Results obtained show that while REX is statistically insignificant and yields a price elasticity of −0.002, PCI is significant and generates a price elasticity of −1.07. The results obtained show that PCI outperforms REX as the preferred price variable in modelling outbound demand on both theoretic and empirical grounds. Furthermore, this index can be used to monitor the inter-temporal competitiveness of a destination. [ABSTRACT FROM AUTHOR]

Highlights: [•] The drivers and dynamics of migrant related tourism are not well understood. [•] The analysis identifies a strong quantitative link between migration and VFR tourism. [•] Migration numbers impact upon total and non-VFR tourism. [•] This results have implications for policymakers. [•] This study enhances understanding of the implications of international migration. [ABSTRACT FROM AUTHOR]

Abstract: Immigration can potentially influence tourism flows. However, in spite of the vast number of studies on tourism demand modelling, the immigration-tourism linkage has not received much attention in the empirical literature. This paper seeks to address this gap. A dynamic demand model is developed and estimated using data from 1980 to 2008 for the 15 main markets of Australia. The explanatory variables included are income, own price, price of a substitute destination, airfare and immigration. The estimation results empirically establish the connection between immigration and inbound tourism. The short run and long-run immigration elasticities generated are 0.028 and 0.09 respectively. Additionally this paper demonstrates that omission of prices of substitutes affects the value of the own price elasticity of demand. The results have implications for future research and for stakeholders who can improve the efficiency of their planning exercises by taking into account additional information on immigration trends. [Copyright &y& Elsevier]

Migration induces inbound and outbound tourism flows for a country heavily reliant on migration, such as Australia. Previous research has provided estimates for Australia of the effects of changes in migration on the volume of inbound and outbound tourism. When supplemented with information about tourist spending, estimates can be made of any expenditure changes associated with migration-induced tourism. Such migration-induced tourism expenditures will have economic impacts on the economy. This study estimates the economic impacts of migration-induced inbound and outbound tourism flows using a computable general equilibrium (CGE) model for Australia projecting th effects on key economic variables such as real GDP, real value added, economic welfare, and employment. [ABSTRACT FROM AUTHOR]

The aim of this article is to use dynamic panel data cointegration technique to determine elasticities of tourist arrivals to Australia, using income, real exchange rates, and airfares as demand determinants. Annual data from 1991 to 2007 for arrivals from the 10 main markets are used. Previous studies that applied dynamic panel data sets in the tourism context have used the Arellano—Bond estimation technique. Because this technique produces biased and inconsistent estimates in samples with a small time span, this article uses the corrected least square dummy variable technique to generate unbiased and efficient parameter estimates. The results obtained show that demand is inelastic with respect to its determinants in the short run and elastic in the long run. The main implications of these results are that maintaining destination price competitiveness and consumer satisfaction should be rated very high in the priorities of the Australian tourism industry. [ABSTRACT FROM PUBLISHER]

Compared to other OECD countries Australia depends heavily on immigration as a source of population growth. This can have implications for its tourism industry. This paper investigates whether immigration leads to an increase in inbound tourism to Australia. Tourism arrivals were regressed against, GDP per capita, real exchange rate, population of the origin country, and the number of Australian resident born overseas, which was used as a proxy for immigration. A panel of dataset from 1992 to 2006 for nine of the main markets of Australia, namely New Zealand, UK, USA, Japan, China, Hong Kong, Singapore, Malaysia and South Korea was used. A log linear model was specified and estimated. The results strongly support the hypothesis that immigration is a major determinant of total inbound arrivals to Australia. [ABSTRACT FROM AUTHOR]