The Determinants of Tourist Expenditure Per Capita in Thailand: Potential Implications for Sustainable Tourism

Wanvilai Chulaphan,Jorge Fidel Barahona

doi:10.3390/su13126550

Abstract

Tourism authorities in Thailand have consistently pursued profit-seeking mass tourism, resulting in the detriment of the natural resources in major tourist destinations. In response, sustainable tourism projects centered on preserving the environment have been established but neglect the financial needs of tour operators. The objective of this study was to investigate the determinants of tourist expenditure per capita in Thailand using a dataset consisting of 31 countries from 2010 to 2017. The analysis was based on an autoregressive distributed lag model (ARDL) and used a panel estimated generalized least square (ELGS). Generating such knowledge is essential for tourist authorities to develop profitable and sustainable tourism projects in tourist destinations whose natural resources have been affected by profit-seeking tourism. The tourism expenditure per capita is positively affected by word of mouth, income, and the rising prices in other major tourist destinations in Asia. However, it was negatively affected by relative levels of price and corruption. Sustainable tourism projects can be used to develop activities that will help distinguish Thailand from other tourism destinations in Asia. However, in implementing these sustainable tourism initiatives, the mark-up should be minimized to keep tourist prices in Thailand competitive.

Highlights

Tourism demand consists of a bundle of complementary goods and services produced and consumed at the same place and time [1]
Policymakers respond by developing sustainable tourism policies that are environmentally centric but do not address tourist operators’ revenue
We posit that studying the determinants of tourist expenditure per capita will help understand the factors to prioritize when developing sustainable tourism initiatives that will be profitable for tourist operators

Summary

Introduction

Tourism demand consists of a bundle of complementary goods and services produced and consumed at the same place and time [1]. Focusing on tourist arrivals may motivate the implementation of policies that promote profit-seeking mass tourism, leading to a lack of involvement of the local community in tourism development [2], an increase in carbon dioxide emissions [3], and an unsustainable use of resources [4]. Such is the case in Thailand, where the tourism authorities have consistently pushed for promotional programs to encourage tourism growth through mass tourism [5]. The tourism sector in Thailand is linked to lower carbon dioxide emissions [6], the profit-seeking mass tourism has resulted in the deterioration and closure of several tourist destinations in Thailand (i.e., Maya Bay)

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