Title: International tourism demand in India: an empirical insight

Authors: Subhendu Dutta; Aruna Kumar Dash

Addresses: Department of Economics, IBS Hyderabad, IFHE University, Dontanapally, Shankerpally Road, 501203, India ' Department of Economics, IBS Hyderabad, IFHE University, Dontanapally, Shankerpally Road, 501203, India

Abstract: The purpose of this research is to analyse the tourism demand in India from 14 major source countries between 1995–2017. We use the variables such as word-of-mouth, relative price, globalisation, GDP per capita, nominal exchange rate, destination preference, and the terrorist attack and employ panel data analysis. The empirical results of this study revealed that tourism demand is affected by word-of-mouth, GDP per capita, access to globalisation, and relative price. The study will help policy makers to identify the driving forces behind the growth of the tourism sector. The study suggests that there is a need for keeping the domestic price at a competitive level and augment globalisation efforts. Further, our findings support the need for, and the effectiveness of, positive word-of-mouth in promoting tourist arrivals through proper implementation of 'Athithi Devo Bhavah' campaign which says that 'the guest is equivalent to God'.

Keywords: tourism demand; destination preference index; globalisation; word-of-mouth; WOM; panel data analysis; India.

DOI: 10.1504/IJEPEE.2025.146767

International Journal of Economic Policy in Emerging Economies, 2025 Vol.21 No.4, pp.383 - 401

Received: 16 Nov 2020
Accepted: 03 Jul 2021
Published online: 17 Jun 2025 *

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