Factors Affecting Tourism Demand in the Caspian Sea Littoral States

Over the past two decades, international tourism has developed rapidly and has a significant economic importance. This study investigates factors affecting tourism demand in the Caspian Sea littoral states. Panel data method during the period of 2000-2013 has been employed. The results indicate that the per capita income, real exchange rate and trade liberalization has a positive effect on tourism. Also, other obtained results of this research show the economic instability has a significant negative effect on tourism demand. Regarding the significant potential for tourism development in this area, it is recommended while having the policy to promote tourism, paying particular attention to factors affecting tourism demands in the shoreline countries of Caspian Sea.