Where Should We Go? Internet Searches and Tourist Arrivals

The widespread availability of internet search data is a new source of high-frequency information that can potentially improve the precision of macroeconomic forecasting, especially in areas with data constraints. This paper investigates whether travel-related online search queries enhance accuracy...

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Bibliographic Details
Main Author: Cevik, Serhan
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2020
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Where Should We Go? Internet Searches and Tourist Arrivals  |c Serhan Cevik 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2020 
300 |a 16 pages 
651 4 |a Bahamas, The 
653 |a Income 
653 |a Mobility, Unemployment, and Vacancies: General 
653 |a Dynamic Treatment Effect Models 
653 |a Currency; Foreign exchange 
653 |a Personal income 
653 |a Economic Forecasting 
653 |a Unemployment: Models, Duration, Incidence, and Job Search 
653 |a Gambling 
653 |a Real effective exchange rates 
653 |a Hospitality, leisure & tourism industries 
653 |a Recreation 
653 |a Diffusion Processes 
653 |a Economic forecasting 
653 |a Economic sectors 
653 |a National accounts 
653 |a Personal Income, Wealth, and Their Distributions 
653 |a Prices, Business Fluctuations, and Cycles: Forecasting and Simulation 
653 |a Forecasting 
653 |a Time-Series Models 
653 |a Foreign Exchange 
653 |a Forecasting and Other Model Applications 
653 |a Macroeconomics 
653 |a Industries: Hospital,Travel and Tourism 
653 |a Sports 
653 |a Dynamic Quantile Regressions 
653 |a Restaurants 
653 |a Foreign exchange 
653 |a Tourism 
653 |a Forecasting and Simulation: Models and Applications 
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520 |a The widespread availability of internet search data is a new source of high-frequency information that can potentially improve the precision of macroeconomic forecasting, especially in areas with data constraints. This paper investigates whether travel-related online search queries enhance accuracy in the forecasting of tourist arrivals to The Bahamas from the U.S. The results indicate that the forecast model incorporating internet search data provides additional information about tourist flows over a univariate approach using the traditional autoregressive integrated moving average (ARIMA) model and multivariate models with macroeconomic indicators. The Google Trends-augmented model improves predictability of tourist arrivals by about 30 percent compared to the benchmark ARIMA model and more than 20 percent compared to the model extended only with income and relative prices