The successfulness of many businesses is contingent largely or solely on the condition of tourism demands1 (Song et al. 2009). It is one of the top most economic growing sectors in the world and a source of immense increase in the GDP of a country with a higher proportion than any other economic activity (Saleh et al. 2013).Inbound tourism for developing countries as superior good possibly willbecome asignificant factor for economic growth, as demand increases more proportionally than with world income (Vietze 2012). Notably, a number of inbound tourism demand modelling research accentuate its importance towards economic development of destination country (Daniel and Ramos 2002, Shareef and McAleer 2005, Kuo et al. 2014).And analysing inbound tourism demand is highly acknowledged from the literature (Yang and Wong 2012, Lim 1997, Ahn and McKercher 2013). This indicates the influence of tourism on the economic development. Destination countries serve differently for tourists in the form of business, economic, leisure, religious, social, and culture, and consequently, tourists consume destinations differently. Studies mentioned above mainly analysed economic determinants of inbound tourism but rarely talked about social and cultural differences between origin and destination countries along with their economic impacts on destination country, asthese issues are very important to understand in order to know the tourist behaviour. As inbound tourism could be anappropriate factor for growth, an important question to answer arises here is that which economic as well as cultural determinants can push the demand for tourism.In other words, we strive to analysewhether cultural and social determinants influence the tourists‟ behaviour along with economic determinants for inbound flow in Pakistan, using panel data.Moreover, some econometric issues pertaining to panel data would also be complemented with the demand model like time invariant and time variant variables are incorporated using Random effects and Fixed Effects techniques respectively. Hausman test for comparison between R.E and F.E has been used. Other specification tests as correlation test and Wooldridge test had been included. Panel data specification is used as it is more precise and reliable as compared to other time series or cross sectional techniques. Furthermore, panel data is quite appropriate for tourism related studies having more frequency of data. Supervisor:- Dr. Saqlain Raza