Has tourism driven house prices in Germany? Time-varying evidence since 1870

Sefa Awaworyi Churchill*, John Inekwe, Kris Ivanovski

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

Using a historical data set and recent advances in non-parametric time series modelling, we investigate the nexus between tourism flows and house prices in Germany over nearly 150 years. We use time-varying non-parametric techniques given that historical data tend to exhibit abrupt changes and other forms of non-linearities. Our findings show evidence of a time-varying effect of tourism flows on house prices, although with mixed effects. The pre-World War II time-varying estimates of tourism show both positive and negative effects on house prices. While changes in tourism flows contribute to increasing housing prices over the post-1950 period, this is short-lived, and the effect declines until the mid-1990s. However, we find a positive and significant relationship after 2000, where the impact of tourism on house prices becomes more pronounced in recent years.

Original languageEnglish
Number of pages19
JournalTourism Economics
DOIs
Publication statusE-pub ahead of print - 16 Apr 2021

Bibliographical note

Publisher Copyright:
© The Author(s) 2021.

Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.

Keywords

  • Germany
  • house prices
  • tourism
  • tourist arrivals

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