The authors estimate short-run and long-run elasticities for tourists visiting the island of Tenerife. Panel data analysis has rarely been used in previous empirical research. Most of the work in this field takes a price and an income variable to explain tourism demand, and less attention has been given to other variables, such as promotional expenditure. The authors find a significant influence in this variable. They also obtain significant elasticities for income, exchange rate, cost of the trip, and infrastructure.
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Rodríguez et al. (2001) studied this question.
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