Evaluating the drivers of outbound tourism: Evidence from Central Asia

Abstract

Purpose – This study analyses the outbound tourism demand of Central Asia to 76 destinations for the twenty-one-year period (1995-2015). The main objective is to investigate the extent to which economic and non-economic determinants impact the volume of outbound tourism flows in Central Asia. Methodology/Design/Approach – The study formalizes the static panel data, the set of 76 destinations, and five Central Asia countries. The application of the gravity model has been employed using the least squares dummy variables (LSDV) estimation technique. Findings – The findings reveal that the outbound tourism demand of Central Asia is found to be highly income elastic and price inelastic. Costs of transportation and visa restrictions between bilateral countries cause a substantial decline in the number of overseas travel. Among other factors, a peaceful political environment in a destination is defined as a key element to attract tourists from Central Asia. Originality of the research – This research represents the first attempt to analyse outbound tourism demand in Central Asia, taking into account factors in both the origin and destination countries, such as visa restrictions, political stability, tourist income, the price of goods and services, and common language.