Tourism Receipts Research Articles

A reexamination of inbound tourism performance

This paper proposes to investigate tourism performance by employing fuzzy-set Qualitative Comparative Analysis. International tourist destinations are examined to identify the different paths leading to high levels of tourism arrivals and tourism receipts. The findings demonstrate that tourism performance is complex and requires specific combinations of conditions to succeed. The research identifies two types of destinations that rely on different factors to achieve success: Type 1 focuses on price competitiveness, while Type 2 emphasises the quality of the experience. Furthermore, it shows that a peculiar destination performs well in terms of receipts, relying on both price competitiveness and quality of the experience despite a lack of attractions. Type 1 and Type 2 destinations have good predictive validity in a pandemic context.

Does rising inflation affect the tourism industry? Evidence from Nigeria

ABSTRACT The rising spate of inflation in Nigeria has become worrisome in recent years, considering its implications on the quest for tourism development in the country. This study, therefore, empirically evaluates the effect of inflation on the Nigerian tourism industry. Two tourism indicators (tourism arrivals and tourism receipt) are employed in this study for robustness and quarterly data on relevant variables for the period between 1995Q1 and 2020Q4 were analysed using different econometric approaches. The results of all the estimation methods unanimously revealed a trade-off between inflation and the two tourism indicators, signalling that inflation dissuades international tourist arrival and lower tourism revenue in Nigeria. Hence, the Nigerian monetary authority must ensure price stability by keeping the inflation rate at a desirable level in a bid to foster tourism development in the country.

Cape Verde: Islands of Vulnerability or Resilience? A Transition from a MIRAB Model into a TOURAB One?

Small island developing states (SIDSs) traditionally face a set of challenges like the weak and highly fragile economic configuration, environmental issues, and a traditional dependence on a few economic activities forcing them to open the economy to the exterior. Therefore, their development model, like in Cape Verde, depends on migration, remittances, dependence on aid, tourism, and state employment. The current research offers an insight into the nature of Cape Verde’s economy as a SIDS economy and the degree to which the country has been relying on tourism receipts, external remittances from migrations, aid programs, and government services. Understanding Cape Verde’s development model is important to clarify the challenges the country faces and its development needs to gather a long-term resilience and to understand if it is changing from a MIRAB (Migrations, Remittances, Aid, and Bureaucracy) model into another one.

Tourism Sector Development and Economic Growth in OIC Countries

This study aims to examine the impact of the tourism sector on economic growth in 53 OIC member countries. This study uses 4 independent variables namely population, open trade, inflation, and international tourism receipts. The data used is annual panel data from 2010 to 2021, obtained from SESRIC OIC. The analysis method applied in this study is static panel data regression. The results showed that all independent variables, such as population, open trade, inflation, and international tourism receipts, have a significant influence both simultaneously and partially on the economic growth variable (GDP). The tourism sector stimulates other industries through direct, indirect, and induced impacts, contributes to job creation, and causes positive economies of scale. In addition, investments in the tourism sector can positively impact tourism performance indicators such as travel and tourism GDP, international tourism receipts, and international tourist arrivals.

Identifying the determinants of tourism receipts of Thailand and relevant determinant-determinant interactions.

The study examined the determinants that affect tourism receipts in Thailand. To this end, quarterly data from eight main provinces of Thailand from the period 2015-2019 were used and constituted a repeated measures design. Accordingly, a generalized linear mixed model was applied for developing two different random intercept models by treating 1) province, and 2) a combination of province and calendar quarter as cluster-specific effects. It was found that determinants that increased tourism receipts were the number of visitors, the average cost per day, the length of stay of visitors, the presence of low-cost airlines, and a relatively low offence rate. Moreover, an increase in the number of visitors in the fourth quarter produced a higher amount of additional receipts as compared to a similar increase in the first quarter. Specifically, for Thailand attracting high-spending tourists and extending tourist visas for more than 30 days is recommended. Beyond Thailand, uncovering interaction effects as described above may help tourism agencies to focus their limited resources on the determinants that matter.

Travel and Tourism Development Index: The Impact of Travel and Tourism Sustainability on Tourism Receipts and Tourist Arrivals

Bu çalışmanın amacı, Seyahat ve Turizm Gelişmişlik Endeksi'nin (TTDI) kapsamında 117 ülkeyi içeren veri seti için Seyahat ve Turizm Sürdürülebilirliği (STS) alt endeksi kapsamında yer alan Çevresel Sürdürülebilirlik (CS), Sosyo-ekonomik Dayanıklılık ve Koşullar (SDK) ile Seyahat ve Turizm Talep Baskısı ve Etkisinin (STTE) turizm gelirleri ve turist varışları üzerindeki etkisini ortaya koymak, ayrıca bu etkinin turizm geliri ve turist varışlarının farklı düzeylerdeki değişimini incelemektir. Bu amaç doğrultusunda turizm gelirleri ve turist varışlarının farklı kantil düzeylerinde seyahat ve turizm sürdürülebilirliğinden nasıl etkilendiği kantil regresyon analizi kullanılarak analiz edilmiştir. TTDI ve STS değişkenlerinin turist varışları ve turizm gelirleri üzerinde pozitif ve anlamlı bir etkiye sahip olduğu sonucuna ulaşılmıştır. CS, SDK değişkenlerinin turist varışları üzerinde anlamlı bir etkiye sahip olduğu, STTE değişkeninin ise etkisinin olmadığı elde edilmiştir. SDK ve STTE değişkenlerinin turizm gelirleri üzerinde farklı kantillerde anlamlı bir etkiye sahip olduğu, CS değişkeninin ise etkisinin olmadığı bulunmuştur. Sonuç olarak çalışmada yapılan analizler ile bir ülkenin turizmdeki gelişmişliğinin seyahat ve turizm sürdürülebilirliği tarafından belirlendiği ortaya konulmuştur.

Exploring The Impact of Tourism Development and Governance on Economic Growth of Developing Economies: Evidence from Driscol-Kraay Approach

This study undertakes a comprehensive panel data evaluation of 28 developing countries to explore the interconnected dynamics of tourism development, governance, and economic growth in developing economies. GDP is used as a proxy for economic growth and taken as dependent variable while International tourism receipts are used as tourism development and governance stability (GS) was used for governance. FDI and labor force are taken as control variable. In this study, analysis is based on descriptive statistics, correlation analysis, Breusch and Pagan cross section dependency test and second generation unit root tests (occurrence of cross-sectional dependency) have been applied. Moreover, Driscoll and Kraay (DK) standard error (based on fixed effects estimation) technique are used because of Heteroskedasticity, Autocorrelation, and Cross-sectional dependency. The findings indicate a robust positive influence of both tourism development and governance on the economic growth of developing economies. Nevertheless, effective policy interventions are imperative to address governance challenges prevalent in these economies.

The role of digital public services in promoting international tourism: empirical evidence from European regions

PurposeThe present study investigates a nexus between digital public services (DPS) and international tourism empirically.Design/methodology/approachThis article analyzes the nexus of DPS and international tourism by using the international sample of 23 European countries in the span of nearly 10 years from 2011 to 2019. Various econometric techniques, including the panel-corrected standard error (PCSE) model and the feasible generalized least squares (FGLS) model, are employed to confirm the author’s findings. Furthermore, the autoregressive distributed lag (ARDL) method is applied to measure the short- and long-run effects of DPS on international tourism developments.FindingsTourism is positively influenced by digitalization, implying that the enhancement of digital public service usage results in the development of the tourism industry. However, when looking at the effect of DPS in the short term, a negative impact can be found on tourism, as the density reported in the previous analysis stated a negative response to the tourism density. This effect spans the course of several facets, such as international tourism arrivals, international tourism receipt, international tourism, receipts (% of total exports) and global tourism expenditure (% of total imports). Although the result is unfavorable in the short term, digitalization promises great prospects for tourism in the long term. Notably, an improvement in economic growth, financial development as well a reduction in the pervasiveness of corruption and an improvement of environmental quality are transmission channels through which DPS have favorable influences on tourism activities.Practical implicationsThe author’s findings are vital for managers and policymakers to establish a comprehensive grasp of digitalization's role in deciding tourist adoption. This is because digitalization has been proven to play a role in determining tourism adoption.Originality/valueThe present study is the first to examine the relationship between DPS and international tourism empirically. The author is also the first to distinguish the effects of digitalization in the short and long run.

THE ROLE OF TOURISM AS THE FACTOR ENSURING ECONOMIC GROWTH IN THE REPUBLIC OF ARMENIA: CHALLENGES AND PROSPECTS

The tourist arrivals were growing from 2012 to 2019, and 1.8 million people visited Armenia in 2019. That number was not surpassed in subsequent years, and the expenditures by international inbound visitors amounted to about 2.44 billion US dollars in 2022 (accounting for 12.5% of GDP). The article attempts to identify the role of expenditures by international inbound visitors in Armenia in explaining the statistically significant changes in the real gross domestic product (GDP), and the role of tourist arrivals and exchange rate in explaining statistically significant changes in tourism receipts in the short run utilizing the least squares estimation techniques and using quarterly data (2012q1-2023q2); and how vulnerable the Armenian economy is to external shocks to propose respective recommendations on priorities to address the challenges faced under various scenarios we built. We find evidence of the «multiplier effect» with respect to tourism receipts and conclude that the Armenian economy is vulnerable to changes in tourist arrivals (especially visitors from Russia). The slight reduction in tourist arrivals from Russia or if their number remains unchanged could be accompanied by a decrease in expenditures by Russian visitors in Armenia in the period 2024-2026. We conclude that the overvalued Armenian dram against the US dollar in the short run and medium term would negatively affect the price competitiveness of Armenia as an attractive travel destination for foreign visitors unless Armenia succeeds in offering specific tourism products by taking into account the price-perceived quality ratio to attract foreigners. We emphasize the importance of the availability of 2-star hotels or affordable accommodation in the medium term to prevent a drop in tourist arrivals if the Armenian dram remains overvalued.

Tourism Development and Environmental Sustainability in the European Union: Moderating Role of Institutional Governance

This study examines the dynamic effects of tourism and institutional governance along with other variables on CO2 emissions (COE) in the 15 selected European Union (EU) economies over the period 1995-2018. The novel empirical evidence of this study is twofold. First, countries’ bloc effect is controlled based on the entry and exit information of EU countries, and second, in order to capture and better apprehend the aspects of institutional quality meaningful for carbon-neutral tourism in sample countries, interaction effects of tourism receipts and index of institutional quality are examined. For the robust results, non-linear autoregressive distributed lag (ARDL), fixed effects and generalized method of moments (GMM) based models are estimated, wherein the results of the non-linear ARDL approach reveal that there are no asymmetric effects of tourism and institutional quality, that intrinsically affect pollution. Specifically, the findings reveal that tourism development and trade openness can reduce COE. Also, there is evidence of the existence of an environmental Kuznets curve (EKC) in the region. Though institutional quality alone has been found to have an unfavorable impact on the environment yet the interaction term of tourism and institutional quality into the framework reveals a significant and negative impact on COE in the selected region. Therefore, it is suggested that the EU economies should develop effective strategies to improve their present institutional governance framework in such a manner that will help to promote tourism, green purchase intentions of tourists, economic development, trade liberalization and environmental quality.

Effects of Sports Event Tourism Service on Social Imagery and Socioeconomic Benefit

Current sports tourism market focuses on sports events. In terms of economic benefits, it does not simply create tourism output, but also increases consumption to further boost the economy and increase employment opportunities. Sports tourism present great influence on modern life, and hosting sports events allows the organizers enhancing exposure and visibility as well as resulting in considerable tourism receipts for the place. Sports events would increase tourists’ consumption in host places and create new job opportunities and considerable income. Selecting people in Fujian Province, with experience in sports event tourism, as the research samples, total 800 copies of questionnaire are distributed. After removing ones without participating in sports event tourism and invalid/incomplete copies, 423 copies are valid, with the retrieval rate 53%. The research results show that sports tourists could feel the service provided by sports event organizers through actual participation and perceive certain value to achieve satisfaction and further promote social imagery and socioeconomic benefit and sports tourists perceiving quality and complete tangible products or intangible services in the activity and consistent sports tourism activity to the expectation before participation would present the worthy feeling and value and further positively affect the social imagery. According to the results to propose discussions and suggestions, it is expected to affect the social imagery and social benefit of host places in the future events to present good service quality and benefit domestic relevant events in the future.

Confirming the Receipts of International Tourism in Indonesia after the COVID-19 Pandemic: Analyzed with Macroeconomic Indicators

This study aims to analyze International Tourism Receipts in Indonesia with the variables of International Trade, Inflation, and Exchange Rates during and after the COVID-19 pandemic. The analysis technique used to answer the problem is regression analysis using the Ordinary Least Squares (OLS) method. This type of research data uses secondary data obtained from the World Bank, Central Statistics Agency, and Bank Indonesia during the 2002-2022 period. The results of research analysis show that 1) the International Trade variable has a significant negative effect on International Tourism Receipts in Indonesia during and after the COVID-19 pandemic. The stability of international trade fluctuates, tends to decrease, but after the COVID-19 pandemic and the relaxation of social distancing policies, there has been an increase in international tourism. 2) The Inflation variable has a significant negative effect on International Tourism Receipts in Indonesia. A higher inflation rate increases living and travel costs, then reduces tourist interest. 3) The exchange rate variable has a significant and positive effect toward international tourism receipts. The increase of dollar exchange rate against the rupiah, will increase tourist interest in Indonesia. The implications of the results of this research are important for stakeholders and tourism sector companies so that they can continuously increase International Tourism Receipts in Indonesia through keeping macroeconomic indicators consisting of International Trade, Inflation and Exchange in Indonesia.

Modelling of nonlinear asymmetric effects of changes in tourism on economic growth in an autonomous small-island economy

Abstract While a substantial body of empirical evidence exists supporting the tourism-led growth hypothesis, more limited evidence exists regarding the dynamics of the relationship between tourism and economic growth in the island context, with important questions remaining to be answered regarding the linearity and symmetry of the relationship. Policymakers would benefit greatly from such knowledge as they attempt to harness inbound tourism as an engine of economic growth. This study contributes to bridging this important gap in knowledge by investigating the dynamics of the relationship between tourism and GDP in Madeira, a small-island autonomous region of Portugal. The analysis employs an asymmetric nonlinear autoregressive distributed lag model, using data from 1976 to 2019. The results confirm unidirectional causality between tourism and GDP, thus corroborating the tourism-led growth hypothesis. The relationship is also found to be asymmetrical, where the retarding effect of falling tourism receipts is significantly stronger than the stimulus effect associated with increasing tourism receipts. Significant non-linear effects are also found in each adjustment pathway. In terms of policymaking, while this study confirms that investing in tourism can be an effective way of promoting economic growth, efforts should also be made to diversify both the tourism sector and the wider economy to reduce exposure to downside risks.

Circular economy, environmental quality and tourism receipts in Europe: A time series data analysis.

The study examines how progress towards a circular economy (CE), patents related to recycling and secondary raw materials as a proxy for innovation, affect tourism receipts. The study uses Autoregressive Distributed Lag (ARDL) and Error Correction Method (ECM) to analyse time series data from EU countries from 2000 to 2020. Our estimates show that there exist long-run and short-run equilibrium relationships. In sum, evidence shows that promoting circular innovative practices, including recycling and using secondary raw materials in tourist destinations, could improve environmental quality and positively impact tourism receipts. The study concludes with policy and practical suggestions for circular economy innovation towards green tourism, destination management, and sustainable tourism.

Exploring the Nexus among Tourism, Information Communication Technology and Economic Growth: A Case Study of Nigeria

The research investigates the relationship between economic growth and tourism as well as information and communications technology (ICT) between 1995 and 2021. Using the autoregressive distributed lag (ARDL) process and an enhanced Solow framework for cointegration analysis; we examine how these variables interact. The findings demonstrate that, when all three are forced to depend on one another, economic growth, foreign tourism receipts—which act as a stand-in for tourism—and mobile cellular subscriptions—which indicate the pervasiveness of ICT—all display cointegration. At the 1% level, both ICT and tourism have long-term statistically significant effects. ICT and tourism have short-run coefficients of 0.006 and 0.03 respectively. Furthermore, at the 1% level, the interaction term (LNTOUR*MCS) of tourism receipts and ICT is associated with a long-run coefficient (0.148) that indicates a positive and statistically significant effect on economic growth. This finding highlights the importance of fostering the mutually beneficial interaction between the development of technology and the growth of the tourist industry as key factors in Nigeria's economic prosperity.

Combining the power of artificial intelligence and mathematical modelling: A hybrid technique for enhanced forecast of tourism receipts

Despite being one of the most visited countries in the world, Türkiye's share of tourism revenue does not rank among the top ten. Therefore, it would be worth researching tourist expenditures and analysing this data could provide valuable insights. This research develops a novel approach to estimating and modelling tourism receipts by analysing expenditure types. Artificial intelligence-based methods, such as machine learning, have been increasingly used in the tourism literature to improve various aspects of the industry. However, little research has been conducted using a hybrid method to model and estimate tourist expenditure. This paper is the first to combine conventional mathematical analysis, specifically first-order two-variable polynomial equations, with artificial intelligence-based machine learning algorithms in a tourism setting. The research results indicate that expenditure types such as accommodation and food & beverage significantly impact Türkiye's tourism revenue and Türkiye's total tourism revenue will not exceed 45 billion dollars by 2027. This study provides a valuable and practical contribution to improving the accuracy and efficiency of methods for managing tourism economics, particularly in European countries where the economy heavily relies on income generated by tourism. Additionally, it fills a gap in studies focused on tourists' expenditure types by combining artificial intelligence and traditional analysis, making it a unique piece of research.

The linkage between tourism and housing prices of China’s leading megacities: Beijing, Shanghai and Guangzhou

ABSTRACT The main goal of this study is to look at the relationship between tourism and housing prices (HPs) in three important Chinese cities: Beijing, Shanghai and Guangzhou. We use a unique statistical approach called quantile-on-quantile (QQ) to examine this connection. The findings of the study show a favorable relationship between tourism and HPs in these megacities, with notable variances reported across different quantiles within the cities. For each metropolitan center, these findings have substantial policy ramifications. In a number of important ways, our research adds to the body of information in the existing literature. First, this paper illuminates the fascinating dynamics of China’s tourism sector. Second, it is the first inquiry to look at how tourism-related activities and HPs are related using the QQ approach. To give a novel perspective to the investigation, this paper uses the QQ technique to ascertain how actual international tourism receipts and HPs are related.

The Impact of Tourism on Energy Consumption: A Sectoral Analysis for the Most Visited Countries in the World

Tourist activity has strategic importance in the global economy. Nevertheless, the tourism activities are linked to increased emissions, due to the sector’s energy intensity, especially in the transport and commercial sectors. The aim of this study is to analyze the relationship between final energy consumption in the whole economy, the transport, commercial and public services sectors, and the tourist activity in the 15 countries with the highest number of international tourist arrivals in the world, in 2000–2019 period. The Energy–Environment Kuznets Curve (EKC) hypothesis extended with tourism has been tested. Obtained results show non-linear relationships between energy consumption and production levels. There is evidence in favor of the energy EKC hypothesis, and in favor of an inverted N-shaped relationship for transport and commercial and public services sectors. The results also show a positive, increasing relationship between energy consumption and tourist arrivals for the whole economy. However, there is some evidence of the tourism energy EKC hypothesis when considering the transport, commercial and public services sectors. Therefore, economies of scale are observed in these sectors. Accordingly, it is highly advisable to increase the economies of scale, coupled with a greater awareness on the use of renewable energy. Negative relationships are found between energy consumption and tourism receipts. Therefore, it is advisable to establish policies that encourage high quality tourism to control the economy’s energy consumption.

The Relationship between Macroeconomic Factors and Tourism Demand for OIC Countries

Objective – The current paper investigates the relationship between macroeconomic factors and tourism demand for OIC countries. Methodology – The current paper employed the panel quantile regression analysis to assess the relationship. Findings – It is demonstrated that the impact of macroeconomic factors on tourism receipts is heterogeneous depending on the levels of tourism spending in the OIC host countries. The exchange rate and income exhibit a positive relationship with tourism demand. Meanwhile, inflation presents a negative relationship towards tourism demand at the lower level of tourism demand yet is positively related to the higher level. On the other hand, trade openness is negatively related to tourism receipts in general, and the strength of the relationship decreases at a higher level of demand. Novelty – Compared to previous studies, the impact of the macroeconomic factors was assessed across different levels of tourism demand. Type of Paper: Empirical JEL Classification: L83, Z32, O10 Keywords: Tourism Demand; Macroeconomic Factors; OIC countries; Quantile Regression Reference to this paper should be made as follows: Pinjaman, S; Jemin, S; Ridzuan, A.R; Lada, S. (2023). The Relationship Between Macroeconomic Factors and Tourism Demand for OIC Countries, J. Bus. Econ. Review, 8(2), 60–68. https://doi.org/10.35609/jber.2023.8.2(2)

Global geopolitical crisis and tourism development in the USA

ABSTRACT We analyze the effect of the global geopolitical crisis on tourism development using nonparametric causality-in-quantiles. We employ monthly data on tourism development (i.e. number of arrivals and receipts) and the global geopolitical crisis from January 1995 – December 2020. Various forms of global geopolitical crises significantly negatively impact USA tourism development. Furthermore, we conclude that the global geopolitical risk influence is subjective to the severity of the crisis, i.e. the more severe a crisis impacts tourism development more significantly. Our results are essential for tourism sector representatives and policymakers, as the global geopolitical crisis can negatively influence tourism receipts.