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Analysis of Tourism-Related Foreign Expenditure with International Spend Data

 
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Author
Coscia, MicheleHARVARD
Hausmann, RicardoHARVARD
Neffke, FrankHARVARD
Published Version
https://www.hks.harvard.edu/centers/cid/publications
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Citation
Coscia, Michele, Ricardo Hausmann, and Frank Neffke. “Exploring the Uncharted Export: An Analysis of Tourism-Related Foreign Expenditure with International Spend Data.” CID Working Paper Series 2016.328, Harvard University, Cambridge, MA, November 2016.
Abstract
Tourism is one of the most important economic activities in the world: for many countries it represents the single largest product in their export basket. However, it is a product difficult to chart: "exporters" of tourism do not ship it abroad, but they welcome importers inside the country. Current research uses social accounting matrices and general equilibrium models, but the standard industry classifications they use make it hard to identify which domestic industries cater to foreign visitors. In this paper, we make use of open source data and of anonymized and aggregated transaction data giving us insights about the spend behavior of foreigners inside two countries, Colombia and the Netherlands, to inform our research. With this data, we are able to describe what constitutes the tourism sector, and to map the most attractive destinations for visitors. In particular, we find that countries might observe different geographical tourists' patterns - concentration versus decentralization -; we show the importance of distance, a country's reported wealth and cultural affinity in informing tourism; and we show the potential of combining open source data and anonymized and aggregated transaction data on foreign spend patterns in gaining insight as to the evolution of tourism from one year to another.
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This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page
https://nrs.harvard.edu/URN-3:HUL.INSTREPOS:37366360

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