Abstract:

 The aim of this paper is to find out which model better explains the tourism flows and the trade flows for UK during 2010 and 2017, the traditional gravity model or the augmented gravity model, adding the Linder variable. Quantitative methods: data panel analysis using E-Views 8. The traditional gravity model is better suited for trade flows and the augmented gravity model adding Linder variable is better suited for tourism flows. Although for tourism flows between UK and the developing countries the results are mixed. The empirical study offers evidence for the augmented gravity model, adding the Linder variable as the best suited for analysis of the international tourism flows. The study proves that for different tourists sub-flows, different models should be used. Only the tourism flows to and from UK were considered, further analysis should be conducted for other developed countries, as well as for developing countries.