Short- and and Long-Run Structural International Tourism Demand Modeling Based on the Dynamic AIDS Model: Empirical Research in Japan

Abstract

When proposing policies that aim to promote inbound and outbound tourism markets, there should be a focus not only on the tourism demand in a certain region but also on interregional relationships. To address this issue, we have developed the methodology for the quantitative analysis of tourism demand structure by focusing on the elasticity of destination choice activities. The demand function of destination choice activities is defined as a Dynamic AIDS (Almost Ideal Demand System) model. The main goal of this research is to examine the applicability of the AIDS models to the estimation of Japanese international tourism demand.