Exchange Rate Volatility and Tourist Flows into Turkey |
George Agiomirgianakis, Dimitris Serenis, Nicholas Tsounis |
Hellenic Open University, Patras, Greece University of Wolverhampton, Wolverhampton, United Kingdom Technological Institute (TEI) of Western Macedonia, Kastoria, Greece Hellenic Open Universtiy, Patras, Greece |
Corresponding Author:
George Agiomirgianakis ,Tel: +30 2610267451, Fax: +30 2610367442, Email: gmagios@otenet.gr |
Copyright ©2014 Journal of Economic Integration |
ABSTRACT |
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This paper examines the effects of Exchange Rate Volatility on tourist flows into Turkey
for the period of 1994~2012. Our results show that (i) there is a negative relationship
between exchange rate volatility and tourist inflows into Turkey; (ii) there is a negative
impact of the relative price ratio on the tourist flows indicating that relatively expensive
places deter tourist arrivals, given the keen international competition among alternative
destinations; (iii) GDP per capita at tourist origin, measured in Purchasing Power
Parities, exerts positive influence on tourist flows. Our findings thus, suggest some direct
policy implications: first, policy makers of a tourist destination country aiming to target
potential markets for their tourist products, should, in principle, avoid markets prone
to exchange rate volatility due to political and social upheavals or financial instability.
JEL Classification
F41: Open Economy Macroeconomics L83: Sports; Gambling; Recreation; Tourism |
Keywords:
Exchange Rate Volatility | Tourist Flows | Turkey | ARDL Method
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