02335cas a2200325 a 4500 AALejournalIMF022394 230101c9999 xx r poo 0 0eng d 5.00 USD 9781616358563 1018-5941 BD-DhAAL BD-DhAAL Ding, Ding. Exchange Rate Elasticities of International Tourism and the Role of Dominant Currency Pricing / Ding Ding, Yannick Timmer. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (35 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 We estimate a variety of exchange rate elasticities of international tourism. We show that, in addition to the bilateral exchange rate between the tourism origin and destination countries, the exchange rate vis-a-vis the US dollar is also an important driver of tourism flows and pricing. The effect of US dollar pricing is stronger for tourism destination countries with higher dollar borrowing, indicating a complementarity between dominant currency pricing and financing. Country-specific dominant currencies (CSDCs) play only a minor role for the average country, but are important for tourism-dependent countries and those with a high concentration of tourists. The importance of the dollar exchange rate represents a strong piece of evidence of dominant currency pricing (DCP) in the international trade of services and suggests that the benefits of exchange rate flexibility for tourism-dependent countries may be weaker than previously thought. Mode of access: Internet Central Banks and Their Policies imf Current Account Adjustment imf Foreign Exchange imf International Tourism imf Short-term Capital Movements imf Trade of Services imf Timmer, Yannick. IMF Working Papers; Working Paper ; No. 2022/024 Full text available on IMF http://elibrary.imf.org/view/journals/001/2022/024/001.2022.issue-024-en.xml IMF e-Library