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Contents

Introduction......................................................................................................................................2
1.

Research hypothesis and metadata...........................................................................................3

2.

Data analysis.............................................................................................................................4
2.1 Data description – histograms................................................................................................4
2.2 Descriptive statistics..............................................................................................................6
2.3 Confidence intervals..............................................................................................................8
2.4 Scatter diagrams, covariance and coefficient of correlation..................................................9
2.5 Estimated regression equation.............................................................................................10
2.6 Regression analysis..............................................................................................................10

Conclusion.....................................................................................................................................11

1

I am doing my own researches in my spare time and I am an active participator in the touristic activities. The databases used for this research are taken from Eurostat. In this paper. peripheral or less-developed areas. The hypothesis is that the employment rate and the income directly influences the trips made by people. household or enterprise in the place visited. as I have been personally interested in this subject for many years. including business. the statistics agency of European Commission and cover the year 2012. as well as to development in rural. Even though I do not have an educational background in tourism. The European Union is a major tourist destination. The importance of tourism to a country’s industry and prosperity has to be acknowledged as we need to find solutions in order to increase the participation of the population in tourism. I will focus my research on the factors that contribute to the participation in tourism. with five of its member states among the world’s top 10 destinations in 2013.Introduction Tourism. my purpose is to determine whether is there any correlation between the employment rate and the income at country level and the participation of the population in tourism and whether this correlation is positive. My thoughts are that if people have more income and if they are employed. for less than a year. Tourism has the potential to contribute towards employment and economic growth. with a focus on the hypothesis and whether this is a valid one or not. The paper is divided according to the quantitative research analysis. refers to the activity of visitors taking a trip to a destination outside their usual environment. whether inbound (inside the country) or outbound (outside the country) and that the relationship between them is positive. therefore it can play a significant role in the development of European regions. 2 . It can be for any main purpose. in a statistical context. leisure or other personal reasons other than to be employed by a resident person.Research hypothesis and metadata The questions that stay at the basis of this research are: How many people are participating in tourism? and What factors influence the participation in tourism? As well as that. then they can direct part of their earnings in travelling. 1.

The statistics found on the specialized sources are focused more on the impact on tourism on the economic growth of a country. rather than on the factors that determine people to travel. The indicator is based on the EU Labour Force Survey that covers the entire population living in private households and excludes those in collective households such as boarding houses.1 Data description – histograms 1 http://ec. followed by Cyprus (19. even though it is acknowledged that the income might have an influence on the number of trips that the population makes. At the other end of the spectrum. halls of residence and hospitals.Data analysis 2. mainly the European Union countries. This should be a determinant of the country’s wealth and economic stability.Employed population consists of those persons who during the reference week did any work for pay or profit for at least one hour. Greece (data are for 2012) and Bulgaria spent.6) and the Netherlands (12. data are for 2012). which we will try to determine in this research.1).I have chosen to study the countries from Europe. Ireland (12. and one dependent – the participation of the population in tourism. residents of Romania. but not only. having a total number of 30 countries. the variables can be described as follows: Employment rate: calculated by dividing the number of persons aged 20 to 64 in employment by the total population of the same age group. Besides this. Income: the mean income by age and sex represents the total number of people. one night or over. Eurostat concludes that when taking into account a country’s size in terms of its population. domestic and outbound.3. therefore 30 cross sectional observations described by 3 variables: two independent: the employment rate and income.1 2. on average. Luxembourg was the EU Member State whose residents spent the most nights abroad per inhabitant (an average of 23. less than one night abroad in 2013 (see Figure 2).php/Tourism_statistics 3 .8 nights in 2013).eu/eurostat/statistics-explained/index. Participation in tourism for personal purposes – percentage of total population. or were not working but had jobs from which they were temporarily absent.europa. As a consequence.

000 and 30. Income In what concerns the income. using graphical tools. meaning that this is the most frequent rate of employment in Europe. Employment rate As it can be observed from below histogram done on the employment rate variable. while in only two countries the income is less than 5000 EUR. meaning that in most of the 4 . In most of the countries. namely the histograms and will comment on the obtained results for each variable. namely Romania and Bulgaria. Participation in tourism The histogram indicates that the distribution is skewed to the right. the histogram shows us that the distribution is skewed to the right. The frequency of the employment rate is higher when the values are lower: this means that the employment rate is less than 65% in most of the countries (almost 9). meaning that the high values have the biggest frequency. the income ranges between 20.000 EUR.In this sub-chapter I will analyze the diagrams. while in only two countries the employment rate is higher than 80%. The most distribution is between 70% and 80%. the distribution is skewed to the right which means that the mass of the distribution is concentrated on the left of the figure.

2 Descriptive statistics We will further analyze the variables in terms of descriptive statistics.0%)  Measures of central tendency Mean: at European level. meaning that in at least two different European countries the employment rate is 63.69150575 -0.. while in 50% of 47. Median: In 50% of the analyzed countries the employment rate is less than 68.95 63.90 indicates that there is a strong distribution because the value is very small compared to the mean (the data has less variability. Standard deviation: the value of 6. the employment rate is on 69.countries the participation in tourism as a percentage of total population ranges between 5 and 15%. Shape of distribution 5 .578706778 highest score – lowest score is 26.4 82 2091.6%.90% . is not very spread out).95%. 2. the range is frequently occurring value (peak) is 63.070329219 26.95%. Employment rate Mean Standard Error Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range Minimum Maximum Sum Count Confidence Level(95.704889553 0. Coefficient of variation: 9. which means that the deviation is not high.the dispersion in the variable is low.8.8%  Measures of variability Range: this shows us that the difference between the lower.6 55.7 30 Mode: the mode values shows us that the most 2.72333333 1.8 average 69. Only in two countries the participation in tourism is more than 45% from the total population. The differences in employment rate are not so significant. while in few countries the participation is more than 35%.905903688 the analyzed countries more than 68. according to the results obtained after computing in excel.72% 6.260839743 68.

the dispersion in the variable is high. There are important differences in the European countries in income. as indicated by the histogram as well.650805379 42086 2414 44500 531116 30 4258. there is more variability.86 EUR Median: In 50% of the analyzed countries the income is less than 19. on average.0%) 17703. There is a strong difference between the smallest and the highest income.211 EUR Mode: the mode value cannot be determined. the income is on average 17.211 EUR while in 50% of the analyzed countries more than 19.70 – the value is negative.48 EUR indicates the square root of variance and means and the average distance of means and scores in original units.41% . meaning that the values in the data set are farther away from the mean.086 EUR.86667 2081. the range is high. it is therefore a right hand distribution or skewed to the right. i. which means that the deviation is high. The standard deviation is high.058071374 0. Standard deviation: the value of 11.070 indicates a positive skew: the mass of the distribution is concentrated on the left. which indicates that there is no value that is frequent.Skewnees: 0.981118 19211 #N/A 11403. However. Kurtosis: -0.  Shape of distribution Skewnees: 0.48023 130039361. this score indicates that our data is not skewed significantly.703. Coefficient of variation: 64. meaning a flat data distribution as compared to the normal one (platykurtic kurtosis) Income Mean Standard Error Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range Minimum Maximum Sum Count Confidence Level(95. no country has the same income as another country  Measures of variability Range: this shows us that the difference between the highest score – lowest score is 42.e not deviated from normal distribution. 6 .3 -0.129433  Measures of central tendency Mean: at European level.65 indicates that we have a high level of positive skewness.403. as shown by the histograms as well.

9758750 88 0.35% Mode: the mode value indicates that the percentage of 7.35 7.0.the dispersion in the variable is high. 7 .3 15. there are important differences in the European countries regarding the participation in tourism Standard deviation: the value of 15. it is therefore a right hand distribution or skewed to the right.719913 43 247.8700503 95 13.11567 82 0. as indicated by the histogram as well. the participation in tourism is on average 20.6698220 38 51.35% while in 50% of the analyzed countries more than 13.71% indicates the square root of variance and means and the average distance of means and scores in original units. However.15 % compared to the total population Median: In 50% of the analyzed countries the income is less than 13. which means that we have a high deviation (more variability).97 – the value is negative.  Shape of distribution Skewnees: 0.5 604.3 0.Kurtosis: . Coefficient of variation: 78% .66 indicates that we have a high level of positive skewness. meaning a flat data distribution as compared to the normal one. meaning a flat data distribution as compared to the normal one.6 30 5. the value is closer to one.8699120 54  Measures of central tendency Mean: at European level.0%) 20.3 the range is high.2 51. Kurtosis: -0. There is a strong difference between the smallest and the highest rate of participation in tourism.05 – the value is negative.3 is the one that is frequent in at least two different countries  Measures of variability Range: this shows us that the difference between the highest score – lowest score is 51.153333 33 2. which means that the deviation is high. The standard deviation is close to the mean value. meaning it is closer to the normal distribution (which is indicated by 0) Participation in tourism Mean Standard Error Median Mode Standard Deviation Sample Variance Kurtosis Skewness Range Minimum Maximum Sum Count Confidence Level(95.

I am 95% confident that the mean value in total population corresponds to interval 67. The scatter diagram validates the values obtained in computing the covariance and correlation.3 Confidence intervals Employment rate: with a margin of error of 2. if the employment rate has higher value. which is the scatter diagram. Employment rate and Participation in tourism Covariance: this has a positive value of 63.28 and 26.57. I am 95% confident that the mean value in total population corresponds to interval 14.4 Scatter diagrams. I am 95% confident that the mean value in total population corresponds to interval 13. The diagram indicates that there is a positive linear relationship between the employment rate 8 . meaning that there is a positive linear relationship between the two variables and that the correlation is direct. which means that the higher values of a variable corresponds to higher value of the other variable.607713833 is closer to 1.99 Participation in tourism: with a margin of error of 5. 2.73 and 21.445.961.77442222. covariance and coefficient of correlation We will analyze further the correlation between the independent and dependent variables using the covariance and coefficient of correlation function. namely.02.14 and 72. then the participation in tourism is also high. Coefficient of correlation: the value of 0. as well as a graphic tool.12.30 %. Income: with a margin of error of 4258.86.2.

574797022 is closer to 1. If the income increases with one unit. if the income has higher value. Income and participation in tourism: yˆ i = 6. Income and participation in tourism Covariance: this has a positive value of 99604.5 Estimated regression equation Based on the formula yˆ i  b0  b1 xi the estimated regression equation for each variable is as follows: = -76. namely. meaning that there is a positive linear relationship between the two variables and that the correlation is direct.000792369 units. the participation in tourism will also increase. If the income increases. which means that the higher values of a variable corresponds to higher value of the other variable. then the participation in tourism increases with 1. then the participation in tourism increases with 0. The scatter diagram validates the values obtained in computing the covariance and correlation.29770264+ 1. The diagram indicates that there is a positive linear relationship between income and the participation in tourism.000792369 x1i The equation indicates that the relationship between the two variables is positive as B1 is <0.383339427 units.and the participation in tourism. the participation in tourism will also increase.383339427 x1i Employment rate and participation in tourism: yˆ i The equation indicates that the relationship between the two variables is positive as B1 is <0.125345662 + 0. then the participation in tourism is also high. Coefficient of correlation: the value of 0. 2. If the employment rate increases with one unit. If the employment rate increases.46711. 9 .

the more travels they do because they have the necessary resources. the country with the highest values from our database (82% employment rate and 44.6 Regression analysis Income vs Participation in tourism R – determines the correlation. as a consequence (0. As we could see.05.2% and 1. employment rate and participation in tourism. 10 .2%).05 Employment rate vs Participation in tourism R – determines the correlation.000368195. Conclusion To conclude. which indicates that the model is valid because it is <0. invest in tourism. which indicates that the model is valid because it is <0. As a general conclusion. as discussed in the previous chapter R square – coefficient of determination – the value of 0. for instance Switzerland.33 indicates that 33% of the changes in participation in tourism is explained by the income Significance F is 0.36 indicates that 36% of the changes in participation in tourism is explained by the employment rate Significance F is 0. the more people with jobs and high income.2.000892767.500 EUR income) has a participation rate in tourism of 40. employment rate and the participation of the population in tourism. At the opposite pole is Romania and Bulgaria with the lowest values on income.9%. I can state that the hypothesis formulated was validated by the research due to the data that indicated a positive relationship between the income. as discussed in the previous chapter R square – coefficient of determination – the value of 0. the population from countries with a high employment rate and high income.