Tourism Demand in Tunisia: A VECM Approach

Abstract This research aimed to study the determinants of tourism demand in Tunisia from 1995 2019 with four independent variables: gross domestic product, consumer price index, real exchange rate, and air transport passengers carried. The employed Unit root test, Co-integration Vector Error Correction model (VECM) examine variables’ short- long-run relationship dynamics. results show that co-integrating relations exist among variables; all variables negatively impact except Air transport. Depending on obtained, policymakers should be aware negative effect country’s political instability extent external demand. In this sense, government must restore stability encourage tourists visit Tunisia. Future studies consider factors such as economy’s trade openness oil prices.