Factors Affecting International Tourism Market Of The Greater Mekong Subregion
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Date
2014-07
Authors
Nonthapot, Sakkarin
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The objective of this research is to investigate the determinants of factors affecting
international tourism market in the GMS counties i.e. Cambodia, Lao PDR, Myanmar,
Thailand and Vietnam. This research empirically examines the factors that affect the
tourism supply and demand of each of the four major source markets in each GMS
country by using a simultaneous equations model with quarterly data over the period
2000 – 2011. It empirically examines the factors affecting the international tourism
market in each GMS country by employing a simultaneous equations model and
compares causal relationships between international tourism demand and economic
factors employing Granger causality analysis with panel data from 2000 – 2011 within a
panel of four major source countries. The study of the four major source markets in each
GMS country found that trade openness and capital investment in the tourism sector are
important factors in the ’s tourism supply to international tourists. ourist income
plays a major role in international tourism demand in the GMS. When considering the
international tourism market in each country, it was found that capital investment in the
tourism sector has a significant positive effect in all GMS countries except Myanmar.
Trade openness has a significant positive effect in Lao PDR and Thailand while it is
negatively related to the tourism supply of Myanmar. Tourist income has a significant
positive effect for all GMS countries in terms of tourism demand. Relative price is
negatively related to international tourism demand in Cambodia and Vietnam. In
addition, substitute price has a negative relationship in Thailand but is positively related
for Cambodia, Lao PDR and Vietnam. The examination of cointegration and causal
relationships between international tourism demand and economic factors showed that
there is cointegration in each GMS country. The long-run causality is unidirectional
running from economic factors to international tourism demand in Cambodia and
bidirectional running from tourist income to international tourism demand in Lao PDR.
Therefore, tourist income is the key to tourism demand in Cambodia and Lao PDR. This
research suggests that each GMS country should promote increased capital investment in
the tourism sector and the volume of international trade. Each GMS country should
focus on attracting higher income groups to further develop their international source
tourism market. In addition, the GMS countries can target tourism promotion in the
GMS as a single tourist destination to achieve a sustainable tourism market.
Description
Keywords
International tourism market , in the GMS counties