Tourism has experienced different levels of development in the different regions of Portugal.
To frame this development, several panel data models were estimated. The main
objective is to explain the evolution of overnight stays by nationality in each region. Secondary
data from 2000 to 2010 was used. The analysis includes the main tourism markets,
such as the United Kingdom, Germany, the Netherlands, Ireland, France and Spain.
Tourism literature suggests that, among others, the main determinants of tourism demand
are Income (GDP), population, tourist´s income by place of residence, households’
consumption, unemployment rate, inflation rate, compensation of employees, comparative
prices and households’ investment rate. It is observed that, although significant, the
explanatory power of these variables varies according to the origin and the destination
region considered
