Özet:

Tourism has been one of the promising industries of Turkish economy with its huge potential for generating foreign exchange, improving balance of payment, and providing employment opportunities. This research aims to present empirical evidence on income and demand elasticities of international tourism demand for Turkey. Arellano – Bond Dynamic panel estimation procedure is employed to estimate demand function of Turkish tourism by considering 20 major clients, accounting for more than 80% of tourism inflows. Empirical findings suggest that there exists important word of mouth effect. On the other hand, both income and price elasticity of demand for Turkish tourism in the short run are low, in the long run however, income elasticity increases whereas price elasticity of demand remains low

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