This study estimates the effects of advertising on internationaltourism demand for the leading Swedish mountain destination Åre. In contrast to previous studies, which primarily focus ontourism demand at a national or sectorial level, this research isconducted at the destination level. The study considers pricelevels at tourism destinations and tourists’ income asdeterminants for tourism demand. However, following advertisingtheories and previous research, the dominance of the marketpower function (i.e. product differentiation) and the informationfunction (i.e. market transparency) are identified as major codeterminantsfor international tourism demand. Demand elasticitycoefficients are empirically estimated for the origin countriesNorway, Finland, the Russian Federation, Denmark and the UK.Findings show that advertising is a significant driver of tourismdemand from Norway, the UK and Russia. Interestingly, incomeand tourism price levels are less significant drivers of demand inall analysed origin markets.