Determinants of tourism demand for Western Balkans countries: a system generalized method of moments (GMM) approach

This paper's main objective is to investigate some of the most important determinants of tourism demand for Western Balkans countries. In this regard, a system generalized method of moments model is estimated for a dataset covering 17 relevant source countries over the period from 2010 to 2022. Results reveal that income levels, geographic proximity, and the COVID-19 pandemic significantly influence tourism flows. For instance, higher GDP per capita in source countries positively impacts tourism demand, while the pandemic had a strongly negative effect. These findings contribute to the literature on dynamic tourism demand modelling and offer actionable insights into policymakers to enhance regional tourism strategies.