DETERMINANTS OF TOURISM DEMAND IN SELECTED COUNTRIES OF META: EMPIRICAL PANEL ANALYSIS

Abstract

The present study aims is to examine the influence of different factors on tourism demand for selected eight countries from META. To test the proposed hypotheses, the study was used six determinants (GDP per capita, consumer price index, investment, openness to international trade in goods and services, terrorism in destinations and one dummy variable for the emergence of the Covid-19) during the period 2010-2020. In order to estimate impact of selected determinants in tourism demand in selected eight countries from META we used dynamic panel data model-system GMM. From the variables encompassed in the model i.e., income and trade, show statistically significant positive influence on tourist arrivals in eight countries from META. Also the results show that terrorism and Covid-19 have negative impact of the tourist demand. These results imply that for any country in the eight countries from EU Med alliance to attract more arrivals of tourists, it should invest significantly in the tourism sector in terms of upgrading tourism infrastructure, increasing trade openness and promoting a peaceful reputation and safe country.