In this paper, we propose to study tourism demand for Tunisia according to a new variable, namely, the number of nights spent by visitors. This method serves a dual purpose: The variable serves as an indicator of the intensity of tourism and subsequently the tourism revenue and provides information on the capacity of accommodation offered. Further, it offers the advantage of combing the supplier-induced demand approach and the classical demand approach. We find that the exchange rate and the income of origin country have a significant impact on the European tourism demand for Tunisia. We prove that the exchange rate has an important impact on decision making regarding overnight stays in both the short and long term. The income of origin country has a significant, but weaker effect than the exchange rate, which traduces the low-cost nature of Tunisian tourism. The economic implication of our results is that Tunisian policy makers have to manage the exchange rate risk well. They should also ensure that Tunisian monetary policy has some other objective in addition to price stability. Furthermore, they must undertake structural reforms in the tourism industry to ensure that tourists would no longer consider Tunisia as a lower-cost destination.