USE OF CAMPSITES IN NORWAY. WHAT IMPACT DOES CHANGE IN EXCHANGE RATE AND INCOME HAVE?
Global Conference on Business and Finance Proceedings. 2021, 16 (2), 109-119
.Johannes Idsø, Western Norway University of Applied Sciences, Norway
Leiv Opstad, Norwegian University of Science and Technology, Trondheim, Norway
The price level in Norway is very high and this has put limits on the number of visitors. However, the last
decade there has been significant fluctuations in the exchange rate, and this has probably affected the travel pattern. This article will examine this by focus on camping tourism the last twenty years. Furthermore, we want to see how increased income has affected its use, especially tents and caravans. The analysis is based on aggregated annual data. This limits the ability of advanced quantitative methods. This research shows that the use of campsites is sensitive to the fluctuations of the exchange rate. Taking into account the time lags in the planning, this study suggests the elasticity with regard to the exchange rate is above 1.0. Furthermore, a trend is recorded where tents and caravans have become less popular especially among domestic users. One explanation may be income development. The results are relevant for the planning of campsites.
JEL: L83, Z32
KEYWORDS: Tourism, Tourist Inflow, Exchange Rate, Campsites, Income