AI Article Synopsis
- - The study investigates how New Zealand's low-cost carriers (like Jetstar) influence domestic tourism demand and growth across five regions (Auckland, Canterbury/Christchurch, Dunedin, Queenstown, and Wellington) from June 2009 to July 2015 using advanced statistical models.
- - Key factors found to impact domestic tourism include LCC services, GDP per capita, regional tourism indicators (accommodation and food), and land transport costs.
- - The study highlights policy implications, suggesting that LCC operations are vital for enhancing local tourism, and discusses airline competition mainly between Air New Zealand and LCCs, as well as considerations for regional tourism authorities and airport management.
Article Abstract
This study aims to provide a better understanding of the impact of New Zealand's low-cost carrier (LCC) on domestic tourism demand and growth. The panel data regression model and the two-stage least-square (2SLS) model (aims to control for the endogeneity effects) are used to empirically investigate the impact of LCC and the key determinants affecting New Zealand's domestic tourism using five regions (Auckland, Canterbury/Christchurch, Dunedin, Queenstown, and Wellington) from June 2009 to July 2015. The findings suggested that the LCC's services, GDP per capita, the regional tourism indicators (accommodation, and food and beverage), and land transport costs affected New Zealand's domestic tourism. The policy implications of the key finding regarding the significance of the LCC's operations on New Zealand's domestic tourism (local/regional tourism authorities and tourism operators), airline competition between incumbent airline (Air New Zealand) and the LCC (Jetstar), and airport authorities are discussed.
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|---|---|
| http://www.ncbi.nlm.nih.gov/pmc/articles/PMC7115627 | PMC |
| http://dx.doi.org/10.1016/j.tourman.2016.10.013 | DOI Listing |
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