HCBE Faculty Articles

Title

U.S. Tourism in Mexico: An Empirical Analysis

Document Type

Article

Date

1982

Publication Title

Annals of Tourism Research

ISSN or ISBN

0160-7383

Volume

9

Issue

1

First Page

21

Last Page

35

Description

This study estimated demand functions for tourism by U.S. residents in Mexico border areas, the Mexican interior, and overseas. There was no evidence that U.S. tourists substitute Mexico for more distant destinations as transportation costs rise. Border tourism is income elastic when the share of U.S. income of the border states is held fixed. Tourism in the Mexican interior is also income elastic. Tourism along the border is price elastic, while tourism in the interior is elastic with respect to U.S. and overseas prices but inelastic with respect to Mexican prices. The rise in the share of the Mexican interior in U.S. overseas tourism is not related to price factors. Recent devaluations of the Mexican peso are unlikely to provide benefits to the Mexican tourism industry.

DOI

10.1016/0160-7383(82)90032-9

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