Why Do Tourists Spend Extravagantly in Portugal? A Binary Logistic Regression by Quartiles

ABSTRACTUnderstanding the spending patterns of tourists and their major determinants is crucial to give practitioners the right directions to develop effective marketing strategies and also for researchers to define how to structure an expenditure model. This study attempts to search for the determinants of spending by European tourists travelling to Portugal. Unlike previous studies, this study benefits from the employment of the binary logistic regression to test a range of hypotheses. The study findings confirm that the amount spent by tourists is influenced by multiple factors both on the demand and supply sides. The paper also provides insights with theoretical and practical implications.