Determinants of Tourism in Southern European Countries: A Dynamic Panel Data Model

This paper aims to investigate some of the most important factors of tourism demand in Southern European Countries. The System Generalized Method of Moments is applied to a panel of 15 relevant tourist generating countries, for the period from 2005 to 2021. The considered explanatory variables follow the expected signs and have statistically significant effects on international tourist arrivals. The results suggest that tourism demand is negatively affected by bilateral distance, and global health emergencies such as COVID-19 pandemic. Moreover, lagged tourist arrivals, per capita income in origin countries, and the existence of a common border have a positive effect on the considered dependent variable.