Structural analysis of factors influencing tourism demand with emphasis on the degree of openness of the economy

Tourism as the most important and most lucrative industries in the world in the third millennium and can cause supply of foreign currencies, create jobs in the service and manufacturing sectors and help increase government revenues. Meanwhile, the role of trade is very important, because it can be said one of the factors that can affect tourism demand is trade. Trade can be raised the important and influential factors in creating the necessary infrastructure and investment in the destination countries. For this reason, this study attempts to examine the impact of trade on tourism demand in selected developing countries in period of 1999 to 2015 using GMM method. The results show that trade, real effective exchange rate, per capita income and economic security have positive effect on tourism demand.

Keywords:

tourism demand , degree of openness of the economy , developing countries , GMM methods