Spatial distribution of touristic flows in a gravity model in South America

Abstract

Purpose

This paper aims to investigate the determinants of international bilateral tourism demand in countries of Southern Common Market (specifically, Argentina, Brazil and Uruguay) and Chile.

Design/methodology/approach

In this study, an augmented gravity model is used to investigate the determinants of international bilateral tourism demand in countries of Southern Common Market. The novel aspect of the analysis is that three models of tourism are defined, depending on the spatial distribution of tourist arrivals and departures. An intra-regional model, an extra-regional model and a general model are estimated using a dynamic panel data model.

Findings

The results indicate that traditional gravity variables are significant in explaining bilateral inbound arrivals, but the characteristics and the behavior of the demand of tourism vary on whether the country belongs to the sub-regional bloc.

Research limitations/implications

The differences found in this paper might have some impacts on the desired design and direction of the touristic policies of each country.

Originality/value

This study analyzes the determinants of international tourism demand through different bilateral relationships, differentiating between intra- and extra-block tourisms.