Heterogenous effects of ICT application on local tourism development: a quantile regression approach

Abstract

ABSTRACT Applying a quantile regression approach, this study examines the heterogeneous effects of information and communications technology (ICT) on tourism development, using data from Vietnam’s 63 provinces in 2010-2019. Basing itself on cluster analysis, the study confirms the role of education in exploiting ICT in local tourism development. The disparity in the impact of ICT on outcomes is also explained, noting several reasons: (i) there is a delay in the effect of ICT application, and (ii) various influences depend on types of ICT. The results show that low percentile of tourism revenue provinces benefit the most from overall improvement in the use of ICT, while e-government applications further stimulate tourism revenue in provinces at higher ones. This finding implies that ICT application strategies must be appropriate for the local tourism context and emphasizes the role of improvement in the quality of ICT education.