Tourism Revenues and Energy Prices: A Dynamic Panel Analysis
Abstract
The literature rarely studies tourism revenues and crude oil prices. There are few studies that focus on which countries, like China, Germany, Spain, France, the United Kingdom, Italy, Mexico, Thailand, Turkey, and the United States, are the most popular destinations with tourists, many of which are located on the European continent. In light of this perspective, this study provides insight into the period between 2010 and 2019. The purpose of this study is therefore to examine how crude oil prices affect tourism revenue. For the analysis, a dynamic panel data technique is used. Two econometric models were used for the empirical part of this study. One of these mod- els includes tourism revenues as the dependent variable, whereas the other model includes only travel tourism revenues. According to the results, oil prices are significantly and positively associ- ated with tourism revenues. Oil prices have a less significant effect on travel tourism revenues than they do on total tourism revenues, which include international passenger travel, but they are more significant if they affect only travel tourism revenues. Using the findings for tourism policy and management, strategies can be developed to manage oil price impacts on tourism.
Keywords
Brent crude oil prices, dynamic panel data analysis, tourism receipts, travel-only tourism receipts
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