IBADAN JOURNAL OF THE SOCIAL SCIENCES

Ibadan Journal of the Social Sciences
Volume 6, No. 1, 2008
Pages 34-45

DOI: 10.36108/ijss/8002.60.0140

A Panel Data Analysis of Demand for Tourism in Africa

Olayinka Idowu Kareem

Department of Economics, University of Ibadan

 

Abstract

This study examines the factors that determine the demand .for tourism in Africa. It starts by analysing the trend in tourism across the globe, focusing particularly on Africa. There are several factors that influence the demand for tourism. This study has included both endogenous and exogenous variables in determining the factors that influence tourism demand in Africa. Using a dynamic Generalized Method of Moments panel data analysis, it was discovered that exogenous variables such as political instability, crime rate and endogenous variables such as exchange rate appreciation and consumer price index are significant factors which tourists consider when choosing Africa as their destination. The results of this conform with Naude and Saayman (2004) and Eila and Einav, 2003) who contend that political upheavals, cut an increase in crime rate, among other factors are responsible for the decline in the inflow of tourists to Africa. This paper concludes that the exogenous variables are the vital determinants of tourist choices with respect to African destinations. The author suggest that for Africa to benefit from the potentialities embedded in the tourism sector, African leaders must strive to maintain peace and political stabilities as well as reduce the level of incessant crimes in their various countries.
Keywords: Tourism, generaliscd method of moments, tourist arrivals, Africa

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