Determinants of Inbound Tourism Revenues in Peru: Evidence from a Crisis Period

The strand of the tourism literature focusing on emerging markets is relatively scarce. However, increasing importance activity in economies last years moving academic attention to countries like Peru, where has become an essential part its recent economic development. Accordingly, this paper analyzes determinants demand by estimating a single-equation model for period 2007-2011. Specifically, it proposed as tool analyze and understand evolution industry basis growth Andean country. obtained results confirm positive relationship between real income non-resident tourists demand, while Peru not eligible luxury good. Additionally, shown that there high sensitivity from inflation differentials. provide important implications policymakers. Namely, becomes relevant better country’s order consolidate contribution times recession.