Determinants Of Tourist Arrivals To Taiwan

• Main Author: Kon, Ping Seng
• Format: Final Year Project Report
• Language: English
• Published: Universiti Malaysia Sarawak (UNIMAS) 2014
• Subjects: HD Industries. Land use. Labor
• Online Access: http://ir.unimas.my/id/eprint/33652/2/Kon%20Ping%20Seng.pdf; http://ir.unimas.my/id/eprint/33652/

This study investigates the determinants of tourist arrivals to Taiwan from selected Asian countries with annually time-series data of 1980 to 2010. These selected Asian countries focus on the major market sources which contribute tourist arrivals to Taiwan such as Korea, Malaysia, and Singapore. The determinants in this study include tourist’s income, tourism relative price, tourism substitute price, and exchange rate. There are four estimation techniques applied in this study; unit root tests, Johansen and Juselius cointegration test, Granger causality test, and dynamic analysis (Variance Decomposition). The empirical results shows that all of the variables are integrated with one, I(1). The results show an existence of long-run cointegration relationship among the variables for model Malaysia and Singapore while Korea model shows short-run relationship exists between the variables where there is a unidirectional causality from Korean tourist’s income to tourism relative price, tourism substitute price (Singapore), and exchange rate in Taiwan. In Malaysia, the result shows that all the independent variables are significant unidirectional cause tourist arrival to Taiwan. Besides, the empirical result also shows there is a unidirectional from Singaporean tourist arrivals to Taiwan and exchange rate between Singapore and Taiwan to tourism relative price in Taiwan