Elasticities relevant to tourism in Scotland: evidence review

An overview of estimates of price elasticities of demand (PED) and income elasticities of demand (YED) for tourists to destinations relevant to Scotland; price elasticities of supply (PES) of commercial accommodation relevant to Scotland and other factors influencing the demand and supply of tourism.


Appendix C: Publications estimated elasticities for commercial accommodation

Author Year Destination Source market PED Price variable YED Income variable PES Other key variables Method/Model Data source Data range AJG rating
Divisekera 2010 Australia New Zealand -0.52 Spending per night 1.13 Budget share x x AIDS Surveys by tourism research Australia 1990Q1-2007Q1 4
Australia Japan -0.61 Spending per night 0.89 Budget share x x AIDS Surveys by tourism research Australia 1990Q1-2007Q1
Australia UK -0.31 Spending per night 1.21 Budget share x x AIDS Surveys by tourism research Australia 1990Q1-2007Q1
Australia US -0.52 Spending per night 1.46 Budget share x x AIDS Surveys by tourism research Australia 1990Q1-2007Q1
Australia Aggregated -0.51 Spending per night 1.33 Budget share x x AIDS Surveys by tourism research Australia 1990Q1-2007Q1
Divisekera and Deegan +++ 2010 Ireland UK -0.41 Spending per night 1.05 Budget share x x AIDS Irish Tourist Board Survey N/A 2
Ireland North America -0.38 Spending per night 1.27 Budget share x x AIDS Irish Tourist Board Survey N/A
Ireland Mainland Europe -0.27 Spending per night 1.09 Budget share x x AIDS Irish Tourist Board Survey N/A
Ireland Rest of the World -0.49 Spending per night 1.32 Budget share x x AIDS Irish Tourist Board Survey N/A
Ireland Aggregated -0.34 Spending per night 1.15 Budget share x x AIDS Irish Tourist Board Survey N/A
Nguyen +++ 2015 UK x x Average daily rate x x [-0.64, 9] x Percentages division Industry sources 2003-2013 0
Xie and TveterĂ„s +++ 2020 Norway Unspecified x x 0.5 GDP of origin country   EX; Hotel Price Regression Statistics Norway N/A 2

Notes: +++ indicates the most relevant destinations to Scotland;

Long-run elasticities were selected or calculated for lagged models;

Unless specified, the demand is for the whole destination rather than a specific tourism sector.

Contact

Email: juanmanuel.scarilli@gov.scot

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