Tourism demand in Bangladesh: Gravity model analysis.

This study analyzes the factors influencing tourism demand in Bangladesh following tourism potential of the country. The study estimates tourism demand in the form of tourist arrival (TA) based on key economic factors like distance, Gross Domestic Product (GDP) per capita, population, Consumer Price Index (CPI) and exchange rate. The paper applies Rodrigue's modifi ed Gravity model through GLS regression analysis based on 4-year panel data from 2009-2012 of 30 origin countries. In considering the absolute purpose of tourism, the basic log-linear model has been revised with the actual volume of TA instead of government recorded gross TA. Derived log-linear equation indicates that TA is positively correlated with GDP per capita and population and negatively associated with distance, exchange rate and CPI. Th us, the study fi ndings direct to potential market for Bangladeshi tourism resulting from short distance, higher GDP per capita of origin country and lower infl ation rate refl ected through CPI in Bangladesh. [ABSTRACT FROM AUTHOR]