Domestic tourism expenditures: The non-linear effects of length of stay and travel party size |
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Authors: | Christer Thrane Eivind Farstad |
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Institution: | 1. Lillehammer University College, Faculty of Economics and Organisation Science, Box 952, 2604 Lillehammer, Norway;2. Institute of Transport Economics, Gaustadalléen 21, NO 0349 Oslo, Norway |
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Abstract: | The independent variables length of stay and travel party size are recurrent determinants of expenditures in micro level tourism studies. In most of this research it has been tacitly assumed that these variables have linear effects on tourism spending. This study, situated in a Norwegian setting, questions this approach by explicitly scrutinizing the possible non-linearities in the relationships between tourism expenditures on the one hand and length of stay and travel party size on the other. The empirical results suggest a positive but diminishing relationship between length of stay and tourism expenditures and a convex (i.e. U) relationship between travel party size and tourism expenditures. The study also considers how a number of other key independent variables affect tourism expenditures. Finally, some managerial and scholarly implications are discussed. |
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Keywords: | Tourism expenditures Domestic tourism Non-linear effects Length of stay Travel party size |
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