This study explores the relationship between tourism demand, both domestic and international, wine price, and wine consumption across European countries. Recognizing the cultural and economic significance of wine, particularly within Europe, this research examines how tourism spending influences wine consumption over time. Using panel data from 19 European countries between 2005 and 2021, the study finds that foreign tourism spending displays a nonlinear effect on wine consumption, initially decreasing but increasing at higher levels. Specifically, foreign spending initially reduces wine consumption but increases once spending crosses a critical threshold. Additionally, wine price shows a significant impact on consumption. These insights provide valuable implications for wine tourism stakeholders seeking to leverage tourism demand to support the wine sector and local economies.
