European outbound tourism in times of economic stagnation

Accounting for the instability of tourism income elasticities in the European Union-15 since 2004, estimations show that income elasticities in the period 2004–2014 were greater in slow-growth periods (above 1) than in fast-growth periods (below 1). Due to the gradual deterioration of the economic environment since 2004, the small income improvements in the fast-growth periods were used relatively more for satisfying pent-up demand for necessary consumer goods or precautionary savings than for traveling abroad. The relatively high income elasticities in the slow-growth periods resulted from negative adjustments due to the effects of the economic downturn.