Title: The world economy, competition, external shocks and demand for international tourist arrivals in Thailand
Authors: Paitoon Kraipornsak
Addresses: Faculty of Economics, Chulalongkorn University, Phayathai Road, Pathumwan, Bangkok 10330, Thailand
Abstract: The demand for Thailand|s international tourism by 10 major tourist origins was estimated. Income elasticities of demand for tourism are all found positive. It is elastic for rich countries, unitary for Japan and France, and inelastic for neighbouring countries. The continual growth of the world economies is an important factor in explaining substantial expansion of the tourism sector. External shocks were found insignificant in most cases. Relative prices of Thailand and the comparable neighbours are found significant for four tourist origins. Exchange rate is found a significant factor for the demand from Australia, Japan, and the USA.
Keywords: international tourist arrivals; ECM; error correction mechanism; income elasticity; price elasticity; external shocks; tourism industry; world economy; comparable neighbours; Thailand; exchange rate.
International Journal of Trade and Global Markets, 2011 Vol.4 No.1, pp.93 - 108
Published online: 08 Apr 2015 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article