International Demand for the United States as a Travel Destination

The role of income in determining international tourism demand for the United States as a travel destination is investigated. Pooled cross-section and time-series data are used to estimate tourism demand for countries in the Central America, Souther American, European, and Asian regions. Empirical findings indicate that tourism demand is responsive to the cost of traveling but that income plays a greater role in tourism demand. The results also indicate that with respect to income, tourism demand is increasing but at a decreasing rate.