Tourism Demand function

Abstract

Tourism is a good contributor in the services sector as well as in the overall growth of a country. With the help of auto regressive distributed lag (ARDL) model this study estimate the tourism demand function in context of Pakistan. Time series data has been collected from the time period 1984 to 2010. The study analyzes the prevailing law and order situation, internal and external conflicts and the ethnic tension in the country impacts the tourism demand negatively whereas better socioeconomic conditions are favorable for the international tourism. Exchange rate contribute negative impact in the demand function while the income of the tourist is positive and significant both in the short and long run.