An Evaluation of the Factors of Maternity Tourism Demand

Maternity tourism has become an increasingly important area of study in tourism and population economicsin recent years. As Canada is one of the few developed economies that practices Jus Soli, this study investigatesthe determinants of maternity tourism in the country. To this end, the study applies the conventionaltourism demand model to identify the factors that influence maternity tourism, including average incomein priority markets, the real effective exchange rate, the number of obstetricians and gynecologists, thenumber of hospital beds, and the infant mortality rate. The study employs a recently introduced FourierVAR model to examine relationships among these variables. The empirical results, based on impulse-responsefunctions, show that higher-quality healthcare, indicated by more hospital beds and obstetricians, attractsmore maternity tourists. Additionally, higher income levels in priority markets increase demand, while anappreciation of the Canadian dollar reduces maternity tourism. Variance decomposition analysis also showsthat infant mortality is a critical explanatory factor, highlighting the importance of healthcare outcomes inshaping maternity tourism flows. These findings could help the government implement effective policiesto promote maternity tourism.