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Modelling International Tourism Demand in Thailand

Author

Listed:
  • Chukiat Chaiboonsri

    (Bangalore University, India)

  • Prasert Chaitip

    (Chiang Mai University, Thailand)

  • N. Rangaswamy

    (Bangalore University, India)

Abstract

This paper sought to find the short-run and long-run relationships between international tourist arrivals in Thailand with economic variables such as GDP, the price of goods and services, transportation costs, and the exchange rate for the period from 1997(Q1)-2005(Q2). Both the Cointegration techniques based on Johansen and Juselius (1990) and Error Correction Mechanisms based on Engle and Granger concept (1997) were used to find the long-run and short-run relationships of the international tourism demand model for Thailand. This paper used the full six standard method test for unit root tests such as ADF-Test (1979), PP-Test (1997,1999), KPSS-Test (1992), DF-GLS Test (1996), the ERS Point Optimal Test and Ng and Perron (2001). The full six standard method test for unit root test have not previously been used to test unit roots for estimating tourism demand models. The long-run results indicate that growth in income (GDP) of Thailand’s major tourist source markets has a positive impact on international visitor arrivals to Thailand while both transportation cost and exchange rate has a negative impact on international visitor arrivals to Thailand. The findings were consistent with economic theory and the implications of the model can be used for policy making.

Suggested Citation

  • Chukiat Chaiboonsri & Prasert Chaitip & N. Rangaswamy, 2009. "Modelling International Tourism Demand in Thailand," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(3), pages 125-146.
    • Handle: RePEc:pet:annals:v:9:i:3:y:2009:p:125-146
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    References listed on IDEAS

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    Cited by:

    1. Prasert Chaitip & Chukiat Chaiboonsri, 2009. "Down Trend Forecasting Method with ARFIMA: International Tourist Arrivals to Thailand," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(1), pages 143-150.
    2. Jong, Meng-Chang & Hong, Puah & Arip, Mohammad Affendy, 2020. "Modelling Tourism Demand: An Augmented Gravity Model," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(2), pages 105-112.
    3. Ruxandra-Irina POPESCU & Rãzvan-Andrei CORBOª, 2013. "€Œamazing Thailand €“ Its Contribution To Growing The Country’S Competitiveness," Proceedings of Administration and Public Management International Conference, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 9(1), pages 220-234, June.
    4. Akarapong Untong & Vicente Ramos & Mingsarn Kaosa-Ard & Javier Rey-Maquieira, 2014. "Thailand's Long-Run Tourism Demand Elasticities," Tourism Economics, , vol. 20(3), pages 595-610, June.
    5. Chhorn, Theara, 2017. "On the Investigation of Factors Effecting International Tourist Arrivals to Cambodian Market: A Static and Dynamic Gravity Approach," MPRA Paper 83813, University Library of Munich, Germany, revised 18 Jul 2017.
    6. Chukiat Chaiboonsri & Prasert Chaitip & N. Rangaswamy, 2008. "A Panel Unit Root and Panel Cointegration Test of the Modeling International Tourism Demand in India," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 8(1), pages 95-124.
    7. repec:rom:campco:v:9:y:2013:i:1:p:220-234 is not listed on IDEAS
    8. Prasert Chaitip & Chukiat Chaiboonsri, 2009. "Thailand’s International Tourism Demand: The ARDL Approach to Cointegration," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 9(3), pages 163-184.
    9. Sriboonchitta, Songsak & Chaiboonsri, Chukiat & Chaitip, Prasert & Chaitip, Arreyah & Kovacs, Sandor & Balogh, Peter, 2013. "An Investigation On The International Tourists’ Expenditures In Thailand: A Modelling Approach," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 7(1), pages 1-4, July.

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