Comparing level of tourism income demand in Hamadan

Tourism industry, as a healthy and profitable industry, has inevitable effect on the social, cultural and economic welfare of every region. These conditions are considerable in areas that have suitable capacity related to tourism. Hamadan province, which is known as historical capital of Iran, is one of these areas that by employing more than 22000 people in tourism section, has special position in the country. For this reason, province and country authorities are trying to extend this condition and to use potential capacities. One of emphasized parts in this regard is demand management in tourism industry that due to its complex structure, few researchers has dealt with it. Therefore, this study aims to estimate tourism demand of Hamadan city and to calculate income elasticity of tourism demand. This is descriptive analytical research and required data have been gathered from 100-tourist sample. For data analysis, in addition to using capabilities of SPSS software, single equation models were used. Single equation models are used when the purpose is estimating demand function for a certain product. If the purpose is estimating demand function of a group of goods and services, system form will be used. In fact, share of each good from total budget of domestic travel with tourism goal is calculated by AIDS model In this research, regression of budget contribution WI for 5 goods accommodation, traffic fines, tolls, fuel cost and visiting sites are separately estimated and after estimating regressions, demand income and price elasticity are calculated. Results showed that income elasticity for Hamadan for accommodation, traffic fines, tolls, fuel cost and visiting sites are 1.39, 1.13, 1.11, 0.61 and 0.26, respectively and mean of this amount for tourism destination was 0.69. Besides, price elasticity for Hamadan is -0.19. Therefore, Hamadan tourists does not include all social classes. Results of cost elasticity shows that accommodation, fines and fuel cost with income elasticity higher than 1 are determined as luxury goods and tolls and cost of visiting sites are basic goods. Generally, and based on price elasticity, it is recommended that for improving tourism, this city should moderate price factors in tourism.