Factors affecting domestic tourism spending in India

Abstract

This study examines the factors affecting domestic households' tourism spending in India. The results from using the unconditional quantile regression method show that regular salary earners in India spend less on tourism. The likelihood of tourism spending increases with higher education. Female-headed households spend less on tourism than male-headed households, suggesting masculinity in controlling resources. Households at the lower quantile of tourism spending treat tourism as a luxury, but it is a necessity for those at the higher quantiles. We found heterogeneous effects of travel and households' characteristics on tourism spending. We suggest that the Indian government should develop better tourist packages and enhance the resource ownership of women. It will enable the tourist sector in India to attract regular salary earners and increase female participation.