Does tourism type concentration/diversification boost inbound tourism revenues in Türkiye?

ABSTRACT

This study investigates the impact of tourism type concentration/diversification on tourism revenues in Türkiye. For this purpose, the study calculates an indicator that measures tourism type concentration using the normalized Herfindahl Hirschman Index (HHI) and the number of tourists in 10 different categories according to their purpose of visit and subsequently, examines the effect of this concentration in a model estimated for inbound tourism revenues. Findings of the study based on the autoregressive distributed lag (ARDL) model indicate that tourism type concentration positively affects inbound tourism revenues. More precisely, it was found that a certain increase in the concentration (decrease in the diversification) level causes an increase (a decrease) in inbound tourism revenues at approximately the same percentage.

KEYWORDS:

• Tourism concentration/diversification
• tourism types
• inbound tourism revenues
• Herfindahl Hirschman index
• ARDL model

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Seymur Ağazade

Seymur Ağazade is a full professor at Alanya Alaaddin Keykubat University (ALKU), Faculty of Economics, Administrative and Social Sciences, Department of Economics. In 2010‐2019, he held positions of assistant professor and associate professor at Recep Tayyip Erdogan University, Department of Economics. He is the Editor-in-Chief of the Anatolian Journal of Economics and Business. Research areas are macroeconomics, growth and development, transition economies, financial economics, tourism economics, innovation, and competition.