Conclusion and Suggestions:
In this study, the influential factors on foreign tourist demand in Middle-East countries by the application of panel data pattern were examined. Results proved all examined variables have significant impact upon foreign tourist demand. According to the obtained results, purchasing power parity variable has a significantly negative impact on foreign tourist demand. Thus, domestic policies of Middle-East countries especially those concerned with exchange rate changes and adjustment. Hence, it seems necessary to consider the development of tourism sect in formulating policies which affect purchasing power parity in order to support tourism industry. In other words, increasing exchange rate in countries in accordance with economic policies leads to the increase in purchasing power parity rate. Alternative incentives should be provided to develop foreign tourism.
According to results about trade freedom and its significantly positive impact upon foreign tourist demand, it seems that membership of Middle East countries in WTO and similar international treaties somehow increases trade freedom and has a strong impact upon tourism development of these countries. Henceforth, opening trading gates which includes a set of different economic policies can lead to the development of tourism industry.
Purchasing Power of other countries was among the variables studied, which had negative impact upon tourism demand of Middle Eastern countries. What carries importance is the efforts Middle Eastern countries should exert in order to introduce their places of interest, and provide facilities to international tourists so they can change their mental presupposition as regards tourism services in Middle East. It is predicted that the aforementioned deeds would introduce Middle East tourism services as a product with positive income demand elasticity rather than negative one.