This study estimates the determinants of domestic and foreign tourism demand using data on 28 Austrian ski resorts for the winter seasons 1986–1987 to 2007–1908. Using the dynamic panel data analysis, we find that the effect of the weather variables (e.g. snow depth, cloudiness or sunshine) is quite small, with a change in one standard deviation of the variation over time in each weather variable, leading to a 2–3 % change in overnight stays. Furthermore, domestic tourists are more sensitive to changes in weather conditions than foreign tourists. By contrast, overnight stays of foreign visitors are much more responsive to changes in income than it is the case for domestic overnight stays. The occurrence of extreme snow-deficient winters, such as the winter of 2006–2007, in the future period will reduce overnight stays of foreign and domestic visitors by 2 and 5 %, respectively. Copyright © 2011 John Wiley & Sons, Ltd.