Sub-dimensions of consumer confidence and outgoing tourist expenditures

This paper explores the relationship between the sub-dimensions of consumer confidence (financial situation, general economic situation, unemployment expectations and savings) and the various categories of outgoing tourist expenditures (accommodation, entertainment, excursion, food, shopping and travel within the country) across 22 European countries. Due to the low frequency of national time series data, the panel data regressions are used to estimate the relationships between the variables. The findings show a positive association between consumer confidence and outgoing tourist expenditures. More specifically, we find that tourists with low levels of confidence in their employment are likely to spend less on excursion and shopping activities, while tourists with higher levels of confidence in their future savings spend more on entertainment, excursions and shopping.