This study employs time series analysis to examine the factors influencing fluctuations in tourist arrivals within a certain timeframe (1993–2023) across a chosen set of Western Balkan nations. The countries that have been chosen for this study are Albania, Croatia, Montenegro, and Greece. These nations exhibit distinct attributes in terms of their socio-economic development patterns; nonetheless, they share commonalities in terms of their coastal topography and cultural heritage influences. In this study, GMM models will be employed to analyze the relationship between the number of tourist arrivals and international tourism receipts. The models will incorporate various independent variables, including GDP growth rate, consumer price index, exchange rate, transportation costs, and other pertinent factors associated with tourism infrastructure. Based on our estimation results, we have observed small variations among countries, indicating a relatively low amount of price elasticity. Nevertheless, when considering Balkan countries, it is shown that income level and currency rates hold greater significance. JEL: Z32, P22, C32
Ermira Kalaj (Wed,) studied this question.