Type of Submission

Refereed Article


Currency exchange rates have consistently been used in modeling international tourism demand (Song & Li, 2008). Using the case of Italy, this study reexamines the relationship between exchange rates and international arrivals from a new perspective by quantifying the impact, if any, that the fluctuations of exchange rates, alone, have on international demand from 19 separate nations. While confirming previous research relative to country pairs (Crouch, 1995), the findings of this study suggest that exchange rates do not universally affect international tourism demand indicating exchange rates exhibit disparate levels of significance in determining international arrivals to Italy. In 11 of the 19 nation pairs examined, exchange rates resulted in no significance, contradicting previous studies (Crouch, 1994b) and prevailing assumptions. These findings will help policy makers and practitioners in understanding the impact of exchange rates on Italian tourism and offers direction to researchers on reevaluating the role of exchange rates in developing international tourism demand forecasting models.