The Effect of Price and Security on Tourism Demand: Panel Quantile Regression Approach

It is of great importance for countries to increase the contribution tourism sector economy. Therefore, authorities focus on how demand tourism. However, most important issue define factors that influence in a complex environment and this study attempts contribute field. Specifically, examines effects REER (Real Effective Exchange Rate) security conditions using panel data methods 73 countries, ranking list from UNWTO reports, over period 2003-2018. The main results show while effect negative, condition has positive sector. In addition these findings which confirm existing literature, innovative character methodology – fixed-effect quantile regression analysis - allowed us check whether variables may vary different percentiles demand. Estimation result reveals change increases high percentiles. Nevertheless, decreases as increase.