Insights from analysing tourist expenditure using quantile regression

Brian Garrod, Antonio Almeida

Research output: Contribution to journalArticlepeer-review

15 Citations (SciVal)
139 Downloads (Pure)

Abstract

Like many other small-island tourism destinations, Madeira faces considerable challenges due to its limited resources and mature markets, including decreasing daily expenditures, a dependency on repeat tourists and decreasing length of stay. Product diversification is frequently recommended as a strategic response and rural tourism as a candidate product. The efficacy of rural tourism as a strategy for increasing destination-wide tourism receipts remains, however, largely unproven. The purpose of this study is to examine the determinants of the daily expenditure of tourists staying in the rural interior of Madeira, based on quantile regression analysis. The results suggest that such tourists are rather passive, wishing mainly to rest and relax. As such, their daily expenditures are not appreciably greater than those of coastal tourists who comprise the mainstay of Madeira’s clientele. Quantile analysis nevertheless provides some useful insights for developing strategies to increase their spending, including family groups and first-time tourists.
Original languageEnglish
Pages (from-to)1138-1145
JournalTourism Economics
Volume23
Issue number5
Early online date19 Sept 2016
DOIs
Publication statusPublished - 01 Aug 2017

Keywords

  • quantile regression
  • expenditure levels
  • expenditure patterns
  • determinants
  • Madeira

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