Impacts of Weather Variability on the International Tourism Receipts—Evidence from Ethiopia (1995–2019)
Abstract
:1. Introduction
2. Review of the Related Literature
2.1. Relationship between Tourism and Weather
- Planning: This includes acknowledging and addressing the links between environmental change and tourism and urging better adaptation plans [57,58,59,60,61,62]. Additionally, understanding the seasonality of weather patterns is vital for planning and decision-making. This involves adjusting festival dates, creating real-time information platforms, and implementing flexible vacation arrangements [62].
- Infrastructure investment: Examples include adapting coastal tourist infrastructure to account for rising sea levels and storm surge risks [63], building seawalls [64], beach erosion control [65], and diversifying tourism offerings. For instance, mountain resorts facing challenges due to decreased snowfall can explore alternative activities like hiking, nature trails, and cultural experiences to attract tourists [66]. Another good example is the introduction of artificial snowmaking in mountain areas vulnerable to climate change, which sustains winter tourism [66].
- Awareness and education: This involves educating tourists, local communities, and industry stakeholders on the need for sustainable practices [58,65], including reducing energy consumption, using renewable energy sources, adopting eco-friendly technologies, and sequestering CO2 through carbon sinks [64,67,68].
- Research and data enhancement: More precise information about climate change, especially at smaller geographical scales, helps the tourist industry better comprehend the issue and make informed decisions [23,69]. To predict how weather patterns will shift in the future and how they will affect various tourist activities, scientists must keep digging into models and data [70,71].
- Enhanced collaboration and coordination: Improved coordination among disaster management offices, tourism administrations, businesses, host communities, and meteorological services is essential for preparing to extreme climatic events [72].
- Implementing policies and regulations: Establishing and enforcing policies are beneficial to mitigate the negative impacts of climate change on tourism. This includes supporting adaptation efforts [67,73,74], promoting low-carbon tourism [75], tax waivers for environmentally friendly practices, active encouragement for climate-adaptive establishments, and the implementation of green taxes to promote sustainability [76,77].
2.2. Modeling International Tourism Arrivals and Receipts
- DTi,j is the tourism demand (tourist numbers, tourist nights, or tourist receipts) for destination i from origin j;
- Yj is the income of origin j;
- TCi,j is the transportation cost between i and j;
- RPi,j is the ratio of prices in the destination i compared to the origin j;
- ERi,j is the exchange rate of currency unit of destination i measured per currency unit of origin j;
- QFi is the value of qualitative factors in destination i (a measure of the attractiveness of the destination).
2.3. Econometric Models of Tourism—And VEC Models in Particular
2.4. Research Gap and Objectives
3. Materials and Methods
3.1. Description of the Study Area
3.2. Source of Data and Variables
3.3. Econometric Model
4. Results and Discussion
4.1. Descriptive Analysis
4.2. Diagnostic Tests for the Econometric Analysis
4.3. Short-Run and Long-Run Relationship Derived from the VEC
4.3.1. Long-Run Error Correction Estimates
4.3.2. Short-Run Error Correction Estimates
5. Conclusions
6. Policy Implication
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Variable | Measurement Unit | Abbreviation | Source |
---|---|---|---|
International tourism receipts | Current USD | ITR | WDI [112] |
Mean annual temperature | Degree (°C) | TEM | WBG [113] |
Mean annual rainfall | Millimeter (mm) | RF | WBG [113] |
Inflation level | Percent (%) | INF | WDI [112] |
Political stability and absence of violence | Percent (%) | PSAV | WDI [112] |
International tourist arrivals | Number | ITA | WDI [112] |
Real GDP growth rate | Percent (%) | RDGP | WDI [112] |
Temperature | Precipitation | |
---|---|---|
Correlation coefficients, national seasonal means to national annual mean | ||
1st quarter | 0.5375 | 0.0701 |
2nd quarter | 0.9333 | 0.8882 |
3rd quarter | 0.8718 | 0.6499 |
4th quarter | 0.9226 | 0.5750 |
Correlation coefficients, regional annual means to national annual means | ||
Addis Ababa | 0.9397 | 0.7583 |
SNNP | 0.9714 | 0.9184 |
Somali | 0.9467 | 0.8197 |
Tigray | 0.9477 | 0.7926 |
Afar | 0.9486 | 0.8775 |
Amhara | 0.9767 | 0.8217 |
Benishangul Gumz | 0.9564 | 0.8118 |
Dire Dawa | 0.9748 | 0.9134 |
Gambela | 0.9425 | 0.8090 |
Harari | 0.9622 | 0.8746 |
Oromia | 0.9888 | 0.9813 |
Sidama | 0.9456 | 0.8723 |
Variable | Mean | Std. Dev. | Min | Max |
---|---|---|---|---|
ITR (million) | 1213.16 | 1085.62 | 152.00 | 3548.00 |
TEM | 23.44 | 0.33 | 22.86 | 24.11 |
RF | 994.13 | 88.70 | 810.37 | 1193.52 |
INF | 10.04 | 11.36 | −8.48 | 44.36 |
PSAV (%) | 11.48 | 5.77 | 5.69 | 25.53 |
ITA (thousand) | 419.00 | 295.00 | 103.00 | 933.00 |
RGDP (%) | 8.09 | 4.40 | −3.46 | 13.57 |
lnITR | 20.40 | 1.12 | 18.84 | 21.99 |
lnTEM | 3.15 | 0.01 | 3.13 | 3.18 |
lnRF | 6.90 | 0.09 | 6.70 | 7.08 |
lnINF | 2.66 | 1.03 | (0.65) | 3.98 |
lnPSAV | 2.82 | 0.47 | 2.20 | 3.75 |
lnITA | 12.67 | 0.79 | 11.54 | 13.75 |
lnRGDP | 2.33 | 0.77 | (0.62) | 2.87 |
Tests for stationarity: Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) test (5% critical value = −3.000) | |||||
Variable | ADF test statistics | p value | PP test statistics | p value | |
d.LnITR | −4.606 | 0.000 * | −4.621 | 0.000 * | |
d.LnTEM | −5.668 | 0.000 * | −6.250 | 0.000 * | |
d.LnRF | −5.577 | 0.000 * | −5.679 | 0.000 * | |
d.LnINF | −6.710 | 0.000 * | −8.359 | 0.000 * | |
d.LnPASV | −4.729 | 0.000 * | −4.725 | 0.000 * | |
d.LnITA | −4.230 | 0.000 * | −4.280 | 0.000 * | |
d.LnRGDP | −6.251 | 0.000 * | −7.250 | 0.000 * | |
Johansen cointegration test | |||||
Max. rank | Parms | LL | Eigenvalue | Max statistic | 5% critical value |
0 | 56 | 119.906 | . | 127.82 | 45.28 |
1 | 69 | 183.816 | 0.997 | 69.886 | 39.37 |
2 | 80 | 218.759 | 0.958 | 45.879 | 33.46 |
3 | 89 | 241.699 | 0.875 | 41.337 | 27.07 |
4 | 96 | 262.368 | 0.847 | 16.247 # | 20.97 |
5 | 101 | 270.492 | 0.522 | 10.475 | 14.07 |
6 | 104 | 275.729 | 0.378 | 6.735 | 3.76 |
7 | 105 | 279.097 | 0.263 |
Test for heteroskedasticity | Breusch-Godfrey LM test for residual autocorrelation | |||||||||
lags(p) | chi2 | Df | p > chi2 | lags(p) | chi2 | Df | p > chi2 | |||
1 | 0.016 | 1 | 0.899 | 1 | 2.343 | 1 | 0.1259 | |||
Test for residual normality | ||||||||||
Joint Variable | Observation | Probability (Skewness) | Probability (Kurtosis) | chi2(2) | p > chi2 | |||||
Residual | 25 | 0.785 | 0.470 | 1.98 | 0.41 | |||||
Test of multicollinearity | ||||||||||
Correlation matrix | Variance inflation factors (VIF) | |||||||||
Variables | lnTEM | lnRF | lnINF | lnPSAV | lnITA | lnRGDP | VIF | 1/VIF | ||
lnTEM | 1.00 | 2.96 | 0.337 | |||||||
lnRF | 0.233 | 1.00 | 1.18 | 0.846 | ||||||
lnINF | 0.068 | 0.264 | 1.00 | 2.14 | 0.466 | |||||
lnPSAV | 0.292 | −0.025 | 0.284 | 1.00 | 4.11 | 0.243 | ||||
lnITA | −0.537 | −0.237 | −0.210 | 0.367 | 1.00 | 4.16 | 0.240 | |||
lnRGDP | 0.479 | 0.067 | 0.306 | 0.534 | −0.264 | 1.00 | 1.65 | 0.604 | ||
Mean VIF | 2.70 |
Variables | Coef. | Std. Err. | z | p > z |
---|---|---|---|---|
ln_ITR | 1 | . | . | . |
ln_TEM | 12.277 | 1.215 | 10.10 | 0.00 |
ln_RF | 0.184 | 0.109 | 2.69 | 0.00 |
ln_INF | 0.185 | 0.012 | 14.86 | 0.00 |
ln_PSAV | −0.495 | 0.044 | −11.15 | 0.00 |
ln_ITA | −1.878 | 0.073 | −25.49 | 0.000 |
ln_RGDP | −0.152 | 0.021 | −7.24 | 0.000 |
_cons | −34.48 | - | - | - |
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Gebbisa, M.B.; Yasin, A.S.; Bacsi, Z. Impacts of Weather Variability on the International Tourism Receipts—Evidence from Ethiopia (1995–2019). Tour. Hosp. 2024, 5, 416-438. https://doi.org/10.3390/tourhosp5020026
Gebbisa MB, Yasin AS, Bacsi Z. Impacts of Weather Variability on the International Tourism Receipts—Evidence from Ethiopia (1995–2019). Tourism and Hospitality. 2024; 5(2):416-438. https://doi.org/10.3390/tourhosp5020026
Chicago/Turabian StyleGebbisa, Mesfin Bekele, Abdi Shukri Yasin, and Zsuzsanna Bacsi. 2024. "Impacts of Weather Variability on the International Tourism Receipts—Evidence from Ethiopia (1995–2019)" Tourism and Hospitality 5, no. 2: 416-438. https://doi.org/10.3390/tourhosp5020026
APA StyleGebbisa, M. B., Yasin, A. S., & Bacsi, Z. (2024). Impacts of Weather Variability on the International Tourism Receipts—Evidence from Ethiopia (1995–2019). Tourism and Hospitality, 5(2), 416-438. https://doi.org/10.3390/tourhosp5020026