Determinants of tourist expenditure: a review of microeconometric models

This paper presents a comprehensive review of the econometric approaches for the analysis of tourism expenditure at the individual level. Considering only regression models is a novel step in literature. The paper reviews 86 papers and 354 estimates of econometric models from data at individual level, over a time period ranging from 1977 to early 2012. Discussion focuses on models used, dependent variables, explanatory variables by category and their effect on expenditure. The most frequently used explanatory variables turn out to be income, socio-demographic and trip related, and these were tested mainly through classical regression techniques (OLS, quantile, Tobit and two-step, logistic). Future research directions should move towards exploring new evidence through novel methodological techniques, making a more extensive use of psychographic variables and tracing a stronger relation to economic theory.