Determinants of tourist expenditure: the role of tourists' experiences in the city of Porto

Abstract

Little attention has been paid to the specifics of urban and cultural tourism and the experiences associated with it, namely in the study of the factors that determine tourists' spending behaviour. We assess how tourists' spending during a visit to the city of Porto is related to experiences related to gastronomy and wine, to their socio-demographic attributes and the characteristics of the trip. Data is based on interviews with domestic and foreign tourists. Ordinary least squares (OLS) estimate shows that indicators such as age, education or activity in the labour market have a positive impact on the spending of tourists, with the length of stay being associated with lower spending. The experiences offered at a destination play an important and positive role in tourists' spending. This implies that it is important to offer specific offers and experiences to increase the attractiveness of the destination. Also, the relationships differ between men and women.