02105cas a2200241 a 4500 AALejournalIMF014387 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484383032 1018-5941 BD-DhAAL BD-DhAAL Culiuc, Alexander. Determinants of International Tourism / Alexander Culiuc. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper estimates the impact of macroeconomic supply- and demand-side determinants of tourism, one of the largest components of services exports globally, and the backbone of many smaller economies. It applies the gravity model to a large dataset comprising the full universe of bilateral tourism flows spanning over a decade. The results show that the gravity model explains tourism flows better than goods trade for equivalent specifications. The elasticity of tourism with respect to GDP of the origin (importing) country is lower than for goods trade. Tourism flows respond strongly to changes in the destination country's real exchange rate, along both extensive (tourist arrivals) and intensive (duration of stay) margins. OECD countries generally exhibit higher elasticties with respect to economic variables (GDPs of the two economies, real exchange rate, bilateral trade) due to the larger share of business travel. Tourism to small islands is less sensitive to changes in the country's real exchange rate, but more susceptible to the introduction/removal of direct flights. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2014/082 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/082/001.2014.issue-082-en.xml IMF e-Library