The role of heritage sites and other influential factors in domestic tourism inflow to Australian states: a gravity model approach

Abstract

ABSTRACT Domestic tourism plays a crucial role in the Australian economy, generating revenue, creating employment opportunities, fostering cultural identity, and facilitating tourism growth and development. The remote regions of Australia are particularly reliant on domestic inbound tourism to stimulate their local economies. This study investigates the influence of heritage sites and various factors on domestic tourism inflows to eight states in the Australia between 1998–2021. The gravity method and random effect model are employed for the empirical analysis. The results indicate that the macro determinants, including population of origin state, gross state product per capita, infrastructural development, shared border between states, and the number of heritage sites, have significant and positive impact on domestic tourism inflow. Conversely, the consumer price index, distance, and pandemic outbreak have a negative influence on domestic tourism inflow. These findings hold important practical implications. Given Australia’s geographical remoteness, promoting domestic tourism becomes imperative to boost the tourism industry and local economies. Therefore, it is recommended that authorities prioritize domestic tourism flows and invest in infrastructure, preserve heritage sites, stabilize prices, implement effective marketing strategies, and respond swiftly to public emergencies such as the Covid-19 pandemic.