Using the seemingly unrelated regression model in the estimation of tourism demand of Turkey

In the tourism sector, various methods are used to investigate demand for countries. In this study aimed to investigate the demand for tourism to Turkey from selected countries for the period 1984 - 2014 by using Seemingly Unrelated Regression (SUR) method. To analyze the tourism demand towards Turkey, the countries sending the most tourists to Turkey like the United Kingdom, Germany, Commonwealth of Independent States and Iran are selected. To explain the tourism demand from these countries to Turkey, it has benefited from traditional demand model. According the results obtained, Turkey’s tourism price index doesn’t seem to explain the demand statistically significant. Another result obtained from the study shows an increase in rival countries’ price index increases the demand for Turkey. Also, an increase in the income level of the countries sending tourist seems to increase the tourism demand in general. In addition, it is seen that the price is a decisive factor when it is preferred among alternative countries for holidays in countries with low per capita income level