The exchange rate and switch to the euro may be thought to have lowered tourism revenue in Greece. These effects are examined with data from 1974 to 2006 in an error correction model of optimal tourist spending that includes source country income and air travel costs. The results may be relevant for touristic countries considering competitive devaluation or a monetary union.
AlgieriB. (2006), ‘An econometric estimation of the demand for tourism: The case of Russia’, Tourism Economics, Vol 12, pp 5–10.
3.
BalassaB. (1973), ‘Just how misleading are official exchange rate conversions?’Economic Journal, Vol 83, pp 1258–1268.
4.
DickeyD.FullerW. (1979), ‘Distribution of the estimators for autoregressive time series with a unit root’, Journal of the American Statistical Association, Vol 74, pp 427–431.
5.
DritsakisN. (2004), ‘Tourism as long-run economic growth factors: An empirical investigation for Greece using causality analysis’, Tourism Economics, Vol 10, pp 305–316.
6.
DritsakisN.GialetakiK. (2004), ‘Cointegration analysis of tourism revenues by the member countries of European Union to Greece’, Tourism Analysis, Vol 9, pp 179–188.
7.
EilatY.EinavL. (2004), ‘Determinants of international tourism: A three-dimensional panel data analysis’, Applied Economics, Vol 36, pp 1315–1327.
8.
EndersW. (2004), Applied Econometric Time Series, Chapter 2, John Wiley, New York.
9.
EngelR.GrangerC. (1987), ‘Cointegration and error-correction: Representation, estimation, and testing’, Econometrica, Vol 55, pp 251–276.
10.
Garin-MunozT.AmaralT. Perez (2000), ‘An econometric model for international tourism flows to Spain’, Applied Economics Letters, Vol 7, pp 525–529.
11.
HalvorsenR.PalmquistR. (1980), ‘The interpretation of dummy variables in semilogarithmic equations’, American Economic Review, Vol 70, pp 474–475.
12.
KennedyP. (1981), ‘Estimation with correctly interpreted dummy variables in semilogarithmic equations’, American Economic Review, Vol 71, p 801.
