Abstract

This article reports on a study of the impact of Taiwan’s new high-speed rail system on tourist’s behavior, including transportation and lodging choices. The authors used a multinomial logit model to quantify the tourists’ characteristics, the elasticity and cross-elasticity, and the value of the tourists’ time. The study found that while the new high-speed rail has alleviated some traffic congestion, many people still prefer using private automobiles. The authors also discuss the impact of the high-speed rail on Taiwan’s domestic airlines; consumer behavior in tourism; utility specification and definition of variables; the relationships among transportation mode, lodging choice, and trip purpose; and travel costs and in-vehicle time (another type of “cost”). The authors conclude that, in order for a high-speed rail system to be fully successful, it is necessary for transportation authorities to promote high-speed rail access, improve transferability with existing transportation modes, and develop integrated transportation networks within tourism destinations.

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