NBOUND VS OUTBOUND PRICE
ELASTICITIES
One further adjustment that may need to be applied to the
price elasticity estimates in table 1 is for the case when
the passenger flow of concern is inbound or outbound,
not the total or average impact. This will be of particular
importance when considering the impact on inbound
tourism of, for example, a national passenger tax. It
also matters when considering the diversion of inbound
passengers and consequent reduction of effectiveness
of a national or regional environmental tax.