The Tunisian Tourism Business: What We Learn About The European Demand?
Domain:
socioeconomicRecord type:
paper
Creator:
JlaZieHas
Publisher:
Clu
Host:
People from European countries are traditionally the most important sources of tourism for Tunisia. The aim of this paper is to analysis the European tourism demand for Tunisia. we propose a vector autoregression error correction model. The following methodology allows us to analysis the dynamic of Tunisian tourism in both short-term and long-term. Our main results show that the real exchange rate is an important factor explaining long-term overnight stays. A currency depreciation of 10% will increase the number of nights spent by visitors by 12% in the long term, but will have the opposite effect in the short term. However, we show that tourism demand is inelastic to income, indicating the low-cost nature of Tunisian tourism.
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