EXPERIMENTAL DESTINATION CHOICE ANALYSIS

Econometric modeling of tourism demand is restricted by problems of data aggregation, errors in variables, and multicollinearity. Discrete choice modeling of experimental data can avoid such problems. Data from a well-designed simulated choice experiment avoids selection bias and allows the study of choice alternatives beyond those observed. The methodology is illustrated with an example of an experiment exploring the impact of three price variables on the choice of Sydney as a destination by tourists from Kuala Lumpur. The combination of experimental design, stated preference data, and discrete choice models form a powerful body of techniques for analysis of tourism demand.