A Gravity Model Analysis Of The Effect Of Regional Policies To Attract Foreign Tourists

Abstract

One of the cornerstones of the USTTA’s attempt to attract foreign tourists to the U.S. has been the initiation of regional cooperative market ventures.  The USTTA has focused on this type of promotion because of evidence that foreign tourists typically visit more than one state and because of the perceived advantage of cost sharing and volume discounts inherent in the regional approach.  This study utilizes the gravity model to empirically estimate the effectiveness of the regional promotion approach.  The empirical results suggest that while regional marketing is somewhat effective, it may not be as effective as devoting resources to upgrading tourist attractions and their surrounding amenities.