Notwithstanding the systematic inclusion of an exchange rate variable of some form in studies examining international tourism flows, hardly any research has been carried out to test for a possible exchange rate regime effect. Drawing from recent advances in exchange rate regime classifications, this paper begins to fill this gap by investigating the impact of exchange rate regimes on international tourism flows. The study employs a system generalized methods of moments (SYS-GMM) estimation for tourist arrivals on a panel of 27 Organization for Economic Co-operation and Development (OECD) and non OECD countries for the period 1980–2011. The results identify multiple exchange rate regime effects and support the importance of maintaining a relatively stable exchange rate to attract international tourist arrivals.
Bibliographical noteNOTICE: this is the author’s version of a work that was accepted for publication in Tourism Management. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Tourism Management, [Vol: 45 (2014)] DOI: 10.1016/j.tourman.2014.05.001 .
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- Exchange rate regimes
- Tourism flows