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Asymmetries in European inbound and outbound tourism:
Normal, luxury or inferior good?
Fresh evidence from a quantile regression
                                         
Angeliki N. Menegaki1 , Aviral Kumar Tiwari2 and George M. Agiomirgianakis3
      
1Department of Tourism Economics & Management (DOEPTM), Agricultural University of Athens, Amfissa
Campus, 33100, Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it , Open University of Cyprus, Nicosia, Cyprus. School of Social Sciences,Hellenic Open University, Patras, 26335, Greece. Laboratory of Economic Analysis & Policy, Hellenic Open University, Patras, Greece.
2Rajagiri Business School, Rajagiri Valley Campus, Kochi, India. Laboratoire d'Economie d'Orléans (LEO - CNRS) Research Fellows, University of Orleans, France, Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
3School of Social Sciences, Hellenic Open University, Patras, 26335, Greece. Laboratory of Economic Analysis &Policy, Hellenic Open University, Patras, Greece. Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
*Corresponding author
     
Abstract
       
This paper studies aggregate inbound and outbound tourist demand in Europe for 1995-2015 with a new panel quantile regression approach. It employs tourist arrivals, tourist receipts and tourist expenditure. Besides real domestic income and real exchange rate, the demand is instrumented with environmental degradation and trade openness. Results show that tourism behaves like a normal good when tourist arrivals are used as a predictor of demand and a luxury good when tourism revenue is used instead. Conversely, tourism behaves like an inferior good when tourist expenditure is used. The results suggest that for inbound tourism in Europe to remain competitive, prices should be low to attract inbound tourism while tourism expenditure subsidization programmes should take place for European residents to be able to afford outbound tourism.
        
Keywords: Asymmetries; Panel quantile approach; tourism demand; inbound; instrument; outbound
      
Citation: Menegaki, A., Tiwari, A. K. and Agiomirgianakis, G. (2020). Asymmetries in European inbound and outbound tourism: Normal, luxury or inferior good? Fresh evidence from a quantile regression. European Journal of Tourism Research 25, 2508.