A dynamic panel data analysis of snow depth and winter tourism

This paper analyses the relationship between the number of overnight stays and different measures of snow depth based on panel data covering 28 Austrian ski resorts for the period 1986/87–2005/06. Using the dynamic heterogeneous panel data technique of Pesaran, Shin, and Smith (1999), we found a long-run relationship between the number of overnight stays, amount of snow depth, weighted real GDP per capita of the major countries of visitor origin, and price index of accommodation services. The long-run elasticity of overnight stays with respect to snow depth was 0.10. However, for high-elevation resorts the evolution of the number of overnight stays was independent of variations in snow depth. Furthermore, the long-run elasticity of the number of overnight stays with respect to weighted real GDP per capita of the countryʹs visitors was much greater for high-elevation resorts than for low-elevation resorts. Finally, early Easter holidays were significantly and positively related to winter tourism demand.