Africa's outbound tourism: An Almost Ideal Demand System perspective. (November 2018)

• Record Type: Journal Article
• Authors: Saayman, Andrea; Viljoen, Armand; Saayman, Melville
• Is Part Of: Annals of tourism research. Volume 73(2018)
• Page Start: 141
• Page End: 158
• Publication Date: 2018-11
• Subjects: Almost Ideal Demand System -- Partial adjustment model -- Outbound tourism -- Demand modelling -- Demand elasticities; Tourism -- Periodicals
• DOI: 10.1016/j.annals.2018.06.005
• Languages: English
• ISSNs: 0160-7383

Abstract

Highlights: We investigate the changing preferences of African demand for international tourism. It provides a global picture of outbound travel from Africa to all continents. A static and dynamic AIDS model is estimated. The income and price sensitivity of African tourism are determined. We identify substitute and complementary destinations for African tourists. Abstract: While African outbound tourism represents 3% of international tourism, the continent is experiencing high economic growth rates, contributing to a fast-growing middle-class and a large potential market for international travel. This article analyses African outbound travel to all other continents from an Almost Ideal Demand System (AIDS) perspective. Both static and dynamic AIDS are estimated and the resulting elasticities indicate that: (i) African tourism to all continents is a normal good, although Africa and Oceania can be considered luxury destinations; (ii) Asia and North America are the most price elastic destinations, and price increases in these continents will lead to substitution to Europe and Africa; (iii) there is persistence in African arrivals to North and South America.