where Dij is the tourism product demanded in destination j by consumers from origin country
i; Yi
is the income of origin country i; Pi
is the price of other goods and services in the origin
country i; Pj
is the price of tourism product in destination country j; P
S
j
is the price of
tourism product in competing destinations; and Z is the vector of other factors affecting
tourism demand. Assuming homogeneity, demand can be written as a function of real
income and relative destination and substitute prices,