Determinants of the Entry of Foreign Tourists in Selected States in Brazil : An Engagement with the Gravitational Model of Tourism

Abstract

Tourism is an important economic activity in the Brazilian economy, since its expansion stimulates investment, generates jobs, and also attracts foreign exchange, increasing the Gross Domestic Product (GDP). In the last years, this sector has gained importance in the economy of Brazil due to the significant increase in the entrance of foreign tourists to the country, mainly with the realization of the 2014 World Cup in several states and the Olympics of Rio de Janeiro in 2016. Rio de Janeiro is the main tourist center of the country and recently the municipality of Gramado, in the state of Rio Grande do Sul, has attracted more tourists, becoming the second national pole and assuming the first position as a tourist pole winter. In this sense, it is essential that the public and private sectors understand the determinants of tourism flows to the country, establishing strategies to attract visitors not only in more traditional places. Thus, we analyze the states that had the largest number of foreign visitors, which are São Paulo, Rio de Janeiro, and Rio Grande do Sul. An alternative form of estimation of the gravitational model was proposed by means of a hierarchical model in two levels, with the first level being the gravitational equation with panel data and two fixed effects, and at the second level a cross-section regression.

Details

Presentation Type

Paper Presentation in a Themed Session

Theme

Changing Dimensions of Contemporary Leisure

KEYWORDS

Tourism, Markets

Digital Media

This presenter hasn’t added media.
Request media and follow this presentation.