The pull factors of tourism demand: a panel data analysis for Latin American and Caribbean countries

Tourism demand is influenced by a number of elements, commonly divided into the pull and push factors. After the discussion on tourism demand determinants, a literature review of previous studies focusing on variables and indicators used as well as results obtained is provided. Drawing on suggestions of other researchers, a model of pull factors of tourism demand divided into three categories: economic, social and tourism competitiveness factors, is proposed. Due to their high but unexploited tourism potential, Latin American and Caribbean countries (LAC) are chosen for empirical analysis. The sample includes 31 countries representative of the population. The variables included in the model are highly determined by the availability of data collected from the World Bank, UNODC, UNESCO and UNWTO for the period 1995-2012. Panel data approach using dynamic panel models and Blundell-Bond estimator is used for the analysis. It confirmed that tourism is affected by all the observed factors proving the model valid and providing basis for policy implications. Although the research topic itself is not novel in tourism research, the paper provides several novel elements: the inclusion of social and tourism supply determinants as opposed to common focus solely on economic ones ; the sample of countries analyzed ; the time frame of the analysis and the usage of Blundell-Bond estimator not commonly used in this kind of research.