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Research article

A new strategy for measuring tourism demand features

  • Received: 06 September 2024 Revised: 23 October 2024 Accepted: 24 October 2024 Published: 29 October 2024
  • JEL Codes: C51, D12, Z3

  • Understanding tourist behavior, demand elasticities, and the purchasing power of regular tourists visiting a destination is of great interest to the tourism industry for business strategy and to governments for tourism public policy. Here, we propose a new method to empirically estimate the own-price and cross-price elasticities of demand for tourist goods and services, as well as an innovative way to measure the average tourist's marginal utility of income. In the tourism sector, we consider that there are two relevant markets: one for tourist goods and services and the other for accommodation. These are separate but interrelated because of the feedback between demands for lodging and tourism products through a vertical relationship of complementarity. The optimal solution to the tourist choice problem consists of a primary demand for tourist services and a derived demand for overnight stays. We focus on obtaining robust estimates of the elasticities corresponding to the former by forecasting the latter. Most of the empirical modeling of tourism demand consists of ad hoc equations that are not directly attached to a specific theoretical framework. Our paper provides a solid characterization of the empirical linkages between the demands for tourist goods and services and accommodation using economic theory. This paper extends existing theory and makes an important contribution to the empirics of tourism economics, with an application to the tourism database of Australia, Canada, Spain, and the United States that quantifies demand elasticities and identifies the socioeconomic status of their respective tourists.

    Citation: Asensi Descals-Tormo, María-José Murgui-García, José-Ramón Ruiz-Tamarit. A new strategy for measuring tourism demand features[J]. National Accounting Review, 2024, 6(4): 480-497. doi: 10.3934/NAR.2024022

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  • Understanding tourist behavior, demand elasticities, and the purchasing power of regular tourists visiting a destination is of great interest to the tourism industry for business strategy and to governments for tourism public policy. Here, we propose a new method to empirically estimate the own-price and cross-price elasticities of demand for tourist goods and services, as well as an innovative way to measure the average tourist's marginal utility of income. In the tourism sector, we consider that there are two relevant markets: one for tourist goods and services and the other for accommodation. These are separate but interrelated because of the feedback between demands for lodging and tourism products through a vertical relationship of complementarity. The optimal solution to the tourist choice problem consists of a primary demand for tourist services and a derived demand for overnight stays. We focus on obtaining robust estimates of the elasticities corresponding to the former by forecasting the latter. Most of the empirical modeling of tourism demand consists of ad hoc equations that are not directly attached to a specific theoretical framework. Our paper provides a solid characterization of the empirical linkages between the demands for tourist goods and services and accommodation using economic theory. This paper extends existing theory and makes an important contribution to the empirics of tourism economics, with an application to the tourism database of Australia, Canada, Spain, and the United States that quantifies demand elasticities and identifies the socioeconomic status of their respective tourists.



    Throughout this paper, let p be an odd prime and q=pn for some positive integer n. Codebooks (also known as signal sets) with low coherence are typically used to distinguish signals of different users in code division multiple access (CDMA) systems. An (N,K) codebook C is a finite set {c0,c1,,cN1}, where the codeword ci, 0iN1, is a unit norm 1×K complex vector over an alphabet A. The maximum inner-product correlation Imax(C) of C is defined by

    Imax(C)=max0ijN1|cicHj|,

    where cHj denotes the conjugate transpose of cj. The maximal cross-correlation amplitude Imax(C) of C is an important index of C, as it can approximately optimize many performance metrics such as outage probability and average signal-to-noise ratio. For a fixed K, researchers are highly interested in designing a codebook C with the parameter N being as large as possible and Imax(C) being as small as possible simultaneously. Unfortunately, there exists a bound between the parameters N, K and Imax(C).

    Lemma 1. ([1]) For any (N,K) codebook C with NK,

    Imax(C)NK(N1)K. (1.1)

    The bound in (1.1) is called the Welch bound of C and is denoted by Iw(C). If the codebook C achieves Iw(C), then C is said to be optimal with respect to the Welch bound. However, constructing codebooks achieving the Welch bound is extremely difficult. Hence, many researchers have focused their main energy on constructing asymptotically optimal codebooks, i.e., Imax(C) asymptotically meets the Welch bound Iw(C) for sufficiently large N [2,3,4,5,6,7].

    The objective of this paper is to construct a class of complex codebooks and investigate their maximum inner-product correlation. Results show that these constructed complex codebooks are nearly optimal with respect to the Welch bound, i.e., the ratio of their maximal cross-correlation amplitude to the Welch bound approaches 1. These codebooks may have applications in strongly regular graphs [8], combinatorial designs [9,10], and compressed sensing [11,12].

    This paper is organized as follows. In Section 2, we review some essential mathematical concepts regarding characters and Gauss sums over finite fields. In Section 3, we present a class of asymptotically optimal codebooks using the trace functions and multiplicative characters over finite fields. Finally, we make a conclusion in Section 4.

    In this section, we review some essential mathematical concepts regarding characters and Gauss sums over finite fields. These concepts will play significant roles in proving the main results of this paper.

    Let n be a positive integer and p an odd prime. Denote the finite field with pn elements by Fpn. The trace function Trn from Fpn to Fp is defined by

    Trn(x)=n1i=0xpi.

    Let ζp denote a primitive p-th root of complex unity and Trn denote the trace function from Fpn to Fp. For xFpn, it can be checked that χn given by χn(x)=ζTrn(x)p is an additive character of Fpn, and χn is called the canonical additive character of Fpn. Assume aFpn, then every additive character of Fpn can be obtained by μa(x)=χn(ax) where  xFpn. The orthogonality relation of μa is given by

    xFpnμa(x)={pn,if a=0,0,otherwise. (2.1)

    Let q=pn and α be a primitive element of Fq, then all multiplicative characters of Fq are given by φj(αi)=ζijq1, where ζq1 denotes a primitive (q1)-th root of unity and 0i,jq2. The quadratic character of Fq is the character φ(q1)/2, which will be denoted by ηn in the sequel, and ηn is extended by setting ηn(0)=0. For φj, its orthogonality relation is given by

    xFpnφj(x)={q1,if j=0,0,otherwise.

    The Gauss sum G(ηn) over Fpn is defined by

    G(ηn)=xFpnηn(x)χn(x).

    The explicit value of G(ηn) is given in the following lemma.

    Lemma 2 ([13], Theorem 5.15). With symbols and notations above, we have

    G(ηn)=(1)n1(1)(p1)n4q12.

    The following results on exponential sums will play an important role in proving the main results of this paper.

    Lemma 3 ([13], p.195). With symbols and notations above, we have

    η1(x)=1paFpG(η1)η1(a)χ1(ax),

    where η1 denotes the quadratic character and χ1 the canonical additive character of Fp.

    Lemma 4 ([13], Theorem 5.33). If f(x)=a2x2+a1x+a0Fpn[x] with a20, then

    xFpnζTrn(f(x))p=ηn(a2)G(ηn)ζTrn(a0a21(4a2)1)p.

    Lemma 5 ([14], Theorem 2). Let n=2m be an even integer and zFp, then

    xFpnζzTrn(xpm+1)p=pm.

    Lemma 6 ([15]). Let n=2m be an even integer, aFpm, and bFpn, then

    xFpnζTrm(axpm+1)+Trn(bx)p=pmζTrm(bpm+1a)p.

    Lemma 7 ([16], Lemma 3.12). If A and B are finite abelian groups, then there is an isomorphism

    ^A×BˆA׈B,

    where ˆA consists of all characters of A.

    By this lemma, we know that

    ^F+pn×F+pn={μa,b:a,bFpn}

    where

    μa,b(x,y)=ζTrn(ax+by)p

    for x,yFpn.

    In this section, we always suppose that n=2m is an even integer and p is an odd prime. The set D is defined as follows:

    D={(x,y)Fpn×Fpn:η1(Trn(x2+ypm+1))=1},

    where η1 is the quadratic character of Fp. A codebook C is constructed by

    C={ca,b:a,bFpn}, (3.1)

    where ca,b=1|D|(μa,b(x,y))(x,y)D, μa,b(x,y)=ζTrn(ax+by)p for (x,y)D and |D| denotes the cardinality of the set D.

    Lemma 8. With symbols and notations as above, we have

    |D|=p12(p2n1(1)n(p1)4pn1).

    Proof. Let

    A1=x,yFpnTrn(x2+ypm+1)=01, A2=x,yFpnTrn(x2+ypm+1)0η1(Trn(x2+ypm+1)).

    Note that

    x,yFpnTrn(x2+ypm+1)=01+x,yFpnTrn(x2+ypm+1)01=p2n.

    Together with the definition of D, we have

    |D|=x,yFpnTrn(x2+ypm+1)0η1(Trn(x2+ypm+1))+12=12x,yFpnTrn(x2+ypm+1)0η1(Trn(x2+ypm+1))+12x,yFpnTrn(x2+ypm+1)01=A22+p2n212x,yFpnTrn(x2+ypm+1)=01=12(p2nA1+A2). (3.2)

    By definition, we have

    A1=1px,yFpnzFpζzTrn(x2+ypm+1)p=p2n1+1pzFpx,yFpnζTrn(zx2)+Trn(zypm+1)p=p2n1+(1)n(p1)4pn1(p1). (3.3)

    where the last equality follows from Lemmas 2, 4, and 5. Note that ηn(z)=1 for zFp if n is even. By Lemma 3, we obtain

    A2=G(ηn)paFpη1(a)xFpnζTrn(ax2)pyFpnζTrn(aypm+1)p

    Using Lemmas 4 and 5, we get

    A2=pm1G2(ηn)aFpη1(a)=0.

    The desired conclusion follows from (3.2) and (3.3).

    Example 1. Let p=5 and n=2. By the Magma program, we know that |D|=240, which is consistent with Lemma 8.

    Theorem 9. Let symbols and notations be the same as before, then the codebook C defined in (3.1) has parameters [p2n,K],

    K=p12(p2n1(1)n(p1)4pn1),

    and

    Imax(C)=(p+1)pn1/(2K).

    Proof. By the definition of the set C and Lemma 8, we deduce that C is a [p2n,K] codebook. If a,bFpn and (a,b)(0,0), then we have

    x,yFpnζTrn(ax+by)p=x,yFpnTrn(x2+ypm+1)=0ζTrn(ax+by)p+x,yFpnTrn(x2+ypm+1)0ζTrn(ax+by)p=0

    This implies that

    x,yFpnTrn(x2+ypm+1)=0ζTrn(ax+by)p=x,yFpnTrn(x2+ypm+1)0ζTrn(ax+by)p.

    For a,bFpn and (a,b)(0,0), we have that

    (x,y)Dμa,b(x,y)=x,yFpnTrn(x2+ypm+1)0ζTrn(ax+by)pη1(Trn(x2+ypm+1))+12=12x,yFpnTrn(x2+ypm+1)=0ζTrn(ax+by)p+12x,yFpnTrn(x2+ypm+1)0ζTrn(ax+by)pη1(Trn(x2+ypm+1))=12(B1+B2), (3.4)

    where

    B1=x,yFpnTrn(x2+ypm+1)=0ζTrn(ax+by)p, B2=x,yFpnζTrn(ax+by)pη1(Trn(x2+ypm+1)).

    By (2.1), we derive that

    zFpζzTrn(x2+ypm+1)p={p,if Trn(x2+ypm+1)=0,0,otherwise.

    Combining Lemmas 4 and 6, we get that

    B1=1px,yFpnzFpζTrn(ax+by)pζzTrn(x2+ypm+1)p=1pzFpx,yFpnζTrn(zx2+ax)pζTrn(zypm+1+by)p=pm1G(ηn)zFpηn(z)ζTrn(a2+bpm+1)zp={pm1(p1)G(ηn),if Trn(a2+bpm+1)=0,pm1G(ηn),if Trn(a2+bpm+1)0, (3.5)

    where G(ηn) is given in Lemma 2. By Lemma 3, we have that

    B2=G(η1)pzFpη1(z)xFpnζTrn(zx2+ax)pyFpnζTrn(zypm+1+by)p.

    Moreover, by Lemmas 4 and 6, we obtain

    B2=pm1G(η1)G(ηn)zFpη1(z)ζzTrn(a2+bpm+1)p={0,if Trn(a2+bpm+1)=0,pm(1p)G(ηn)η1(Trn(a2+bpm+1)),if Trn(a2+bpm+1)0. (3.6)

    It follows from Lemma 2 and (3.4) that

    (x,y)Dμa,b(x,y){12(p1)pm1G(ηn),12(p+1)pm1G(ηn)}. (3.7)

    For any two distinct codewords cz1,z2, cz1,z2C, i.e., (z1,z2)(z1,z2), it is easy to check that

    |cz1,z2cHz1,z2|=1K|(x,y)Dμz1z1,z2z2(x,y)|. (3.8)

    Combining (3.7) and (3.8), we get that Imax(C)=(p+1)pn1/(2K).

    Example 2. Let f(x) be an irreducible polynomial over the field F3 and f(x)=x2+x+2 in F3[x]. Suppose that p=3, n=2, and α is a root of f(x) over F3, then m=1, q=32, and F9=F3(α). It can be verified that the set D consists of the following 30 elements:

    D={(x,y)F9×F9:Tr2(x2+y4)=1}={(1+2α,0),(2+α,0),(1,1),(1,2),(1,1+2α),(1,2+α),(2,1),(2,2),(2,1+2α),(2,2+α),(α,α),(α,2α),(α,1+α),(α,2+2α),(2α,α),(2α,2α),(2α,1+α),(2α,2+2α),(0,α),(0,2α),(0,1+α),(0,2+2α),(1+α,α),(1+α,2α),(1+α,1+α),(1+α,2+2α),(2+2α,α),(2+2α,2α),(2+2α,1+α),(2+2α,2+2α)}.

    The corresponding codebook C is given by

    C={130(ζTr2(ax+by)3)(x,y)D:a,bF9},

    where ζ3=e2π13 and Tr2 denotes the trace function from F9 to F3.

    Corollary 10. The codebook C constructed in (3.1) is asymptotically optimal with respect to the Welch bound.

    Proof. The corresponding Welch bound is

    Iw(C)=p2n1(p+1)+(1)n(p1)4pn1(p1)(p2n1)(p1)(p2n1(1)n(p1)4pn1).

    We deduce that

    limpn+Iw(C)Imax(C)=limpn+4K(p2nK)(p2n1)(p+1)2p2n2=1,

    which implies that C asymptotically meets the Welch bound.

    In Table 1, we show some parameters of some specific codebooks defined in (3.1). From this table, we conclude that Imax(C) is very close to Iw(C) for largely enough p, which ensures the correctness of Theorem 9 and Corollary 1.

    Table 1.  The parameters of the codebook C in (3.1) for n=4.
    p N K Imax(C) Iw(C) Imax(C)/Iw(C)
    3 38 2160 1/40 1.762×102 1.4185
    7 78 2469600 1/1800 4.811×104 1.1548
    11 118 97429200 1/12200 7.483×105 1.0955
    13 138 376477920 1/24480 3.782×105 1.0801
    17 178 3282670080 1/74240 1.2699×105 1.0607

     | Show Table
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    This paper presented a family of codebooks by the combination of additive characters and multiplicative characters over finite fields. Results show that the constructed codebooks are asymptotically optimal in the sense that the maximum cross correlation amplitude of the codebooks asymptotically achieves the Welch bound. As a comparison, parameters of some known nearly optimal codebooks and the constructed ones are listed in Table 2. From this table, we can conclude that the parameters of C are not covered by those in [2,3,4,5,6,17,18,19]. This means the presented codebooks have new parameters.

    Table 2.  The parameters of codebooks asymptotically meeting the Welch bound.
    Ref. Parameters (N,K) Constraints
    [2] ((q1)+M,M), M=(q1)+(1)+1q. q is a prime power, >2.
    [3] (2K+(1)ln,K), K=(q11)n(ql1)n(1)ln2. 1il, si>1, qi=2si, l>1 and n>1.
    [4] ((qs1)m+qsm1,qsm1) s>1, m>1, q is a prime power.
    [5] ((pmin+1)Q2,Q2) Q>1 is an integer, pmin is the smallest prime factor of Q.
    [6] (pminN1N2,N1N2) N11, N2=N1+o(N1), pmin is the smallest prime factor of N2.
    [6] (pminN1N2,N1N2) N11, N2=N1+o(N1), pmin is the smallest prime factor of N2.
    [17] (q1q2ql,(q1q2ql1)/2) 1il, qi is a prime power, qi3(mod4)
    [18] (q,q+12) q is a prime power.
    [19] (q3+q2,q2) or (q3+q2q,q2q) q is a prime power.
    Thm. 3.1 (p2n,p12(p2n1(1)n(p1)4pn1)) p is an odd prime, n=2m, m is a positive integer.

     | Show Table
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    The authors declare they have not used Artificial Intelligence (AI) tools in the creation of this article.

    This work was supported by the Innovation Project of Engineering Research Center of Integration and Application of Digital Learning Technology (No.1221003), Humanities and Social Sciences Youth Foundation of Ministry of Education of China (No. 22YJC870018), the Science and Technology Development Fund of Tianjin Education Commission for Higher Education (No. 2020KJ112, 2022KJ075, KYQD1817), the National Natural Science Foundation of China (Grant No. 12301670), the Natural Science Foundation of Tianjin (Grant No. 23JCQNJC00050), Haihe Lab. of Information Technology Application Innovation (No. 22HHXCJC00002), Fundamental Research Funds for the Central Universities, China (Grant No. ZY2301, BH2316), the Open Project of Tianjin Key Laboratory of Autonomous Intelligence Technology and Systems (No. TJKL-AITS-20241004, No. TJKL-AITS-20241006).

    The authors declare no conflicts of interest.



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