Distance Models for New Zealand International Tourists and the Role of Transport Prices

Abstract

This article analyses tourists’ travel by car or air in New Zealand using two-stage hurdle models to relate both the decision to use each mode and the average distance traveled by a mode to transport prices and tourist characteristics. We find little evidence of price sensitivity for either decision, although older tourists, those with longer stays, and non—tour group travelers appear to be more price sensitive. This research indicates that the management of tourism transport and travel distance requires policies and measures that go beyond economic instruments such as the market mix of tourists, length of stay, and season of travel.