An analysis of households' appraisal of their budget constraints for potential participation in tourism.

This paper examines the importance of households' budget constraints as a barrier to participation in tourism. For this purpose, a sample of Spanish households drawn from the European Community Household Panel was analysed. This survey gathers data on the economic and socio-demographic situation of all adult household members. More specifically, it includes a question on each household's capacity to afford a week's yearly holiday. The aim of this question is to assess whether households have sufficient financial resources to participate in tourism. The results of the analysis demonstrate that budget constraints on tourist travel are binding for a significant percentage of Spanish households. The results also show that this type of constraint is not only conditioned by the level of income, but by a more complex appraisal that also includes other financial variables, such as households' saving capacity or the unemployment status of its members. Furthermore, non-financial variables, such as the level of education, age, and barriers associated with poor health status, all help to determine the degree of importance with which households perceive their budget constraints.

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