Modeling Turkish outbound tourism demand using a dynamic panel data approach

The purpose of this study is to model and empirically test outbound tourism demand of Turkish travel market. For this purpose, panel cointegration tests and panel fully modified ordinary least squares method, which produces asymptotically unbiased and normally distributed coefficient estimates, are employed for 12 Turkish travel markets. The results indicate that there is a cointegration relation in the model, and income, relative price, and word of mouth are significant determinants affecting outbound tourism demand of Turkey for the 12 destinations. Managerial implications are discussed.