Devaluation, pass-through and foreign reserves dynamics in a tourism economy

Chao, Chi‐Chur; Lu, Lee-Jung; Lai, Ching‐chong; Hu, Shih-Wen; Wang, Vey

doi:10.1016/j.econmod.2012.09.050

Cited by 16 publications

(11 citation statements)

References 14 publications

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“…This implies that a rise in the real value of the nominal exchange rate is likely to raise the purchasing power capacities of the foreign tourists and therefore incentivize them to travel to the South Asian nations. Similar findings were reported by Chao et al [36]. In contrast, no statistically significant impact of domestic inflation within the South Asian economies on the IITD could be established as perceived from the statistical insignificance of the corresponding elasticity estimates.…”

Section: Resultssupporting

confidence: 89%

“…Moreover, the model also controls for the real exchange rate as abbreviated by RER. The inclusion of the real exchange rate is justified by the understanding that it influences the travel decisions of the international tourists who tend to make the decision to travel based on the value of their domestic currency relative to that of the currency in the tourist destination [36]. Similarly, the model also controls for the domestic inflationary rates (INF), proxied by the consumer price level, within the host nations.…”

Section: Empirical Model and Datamentioning

confidence: 99%

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Calibrating the Impacts of Regional Trade Integration and Renewable Energy Transition on the Sustainability of International Inbound Tourism Demand in South Asia

et al. 2020

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This paper aims to evaluate the overarching relationships between International Inbound Tourism Demand (IITD), regional trade integration and Renewable Energy Transition (RET) in the context of selected South Asian economies between 1990 and 2016. The results from the panel data econometric analyses, accounting for cross-sectional dependency and slope heterogeneity issues, showed that higher degrees of intra-regional trade between the South Asian economies exert positive impacts on the IITD in South Asia. Similarly, undergoing a RET was found to stimulate the IITD further. Besides, the joint favorable impacts of regional trade integration and RET on South Asia’s IITD were also ascertained. Therefore, these findings impose key policy implications concerning the pertinence of strengthening regional trade cooperation between the South Asian neighbors and boosting renewable energy consumption for enhancing the IITD further.

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Section: Resultssupporting

confidence: 89%

Section: Empirical Model and Datamentioning

confidence: 99%

Calibrating the Impacts of Regional Trade Integration and Renewable Energy Transition on the Sustainability of International Inbound Tourism Demand in South Asia

et al. 2020

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“…Chang and McAleer (2012) find in the case of Taiwan that the exchange rate typically has an expected negative effect on tourist arrivals to Taiwan. Chao et al (2013) examine how currency depreciation affects the prices of inbound tourism, illustrating that the exchange rate has a dominant effect on the amount of tourists who enter a country. Consequently, domestic currency depreciation may harm the revenue of inbound tourism (Chao et al 2013).…”

Section: Datamentioning

confidence: 99%

“…Chao et al (2013) examine how currency depreciation affects the prices of inbound tourism, illustrating that the exchange rate has a dominant effect on the amount of tourists who enter a country. Consequently, domestic currency depreciation may harm the revenue of inbound tourism (Chao et al 2013). Martins, Gan, and Ferreira-Lopes (2017) indicate evidence that an increase in GDP per capita (GDP), a depreciation in the national currency (EXG), and a decline of relative domestic prices (RP) all help boost tourism demand.…”

Section: Datamentioning

confidence: 99%

Do Country Risks Matter for Tourism Development? International Evidence

Chen

2020

Journal of Travel Research

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This research fills the gap in the tourism literature on the impacts of country stability—including political, financial, and economic—on tourism development (i.e., international tourist arrivals, international tourism revenues, and travel and leisure sector returns). To account for possible asymmetric and nonlinear relationships among variables, we apply a new method of moment quantile regression, by using panel data from 106 countries spanning the period 2006–2017. From a global perspective, the empirical results indicate that higher country stability generally leads to higher tourism development, while there is no salient influence of financial stability on travel and leisure sector returns. This suggests that the effects of country risk ratings are mostly nonlinear across different tourism development quantiles. Additionally, different components of risk rating scores have diverse impacts on tourism development. The findings mean that policy makers should consider their tourism condition when setting country stability strategies.

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“…Chao, Lu, Lai, Hu, and Wang () analyzed the effects of currency devaluation on inbound tourism arrivals and reached the conclusion that exchange rate volatilities have vital role in inbound tourist arrivals and spending. They added that depreciation of local currency may affect the tourism revenues negatively.…”

Section: Literature Reviewmentioning

confidence: 99%

Asymmetric effects of real exchange rate on inbound tourist arrivals in Malaysia: An analysis of price rigidity

Karimi

Khan

Karamelikli

2018

Journal of Tourism Research

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Present research is sought to analyse asymmetrical effects of exchange rates and income of tourists on tourist arrivals in Malaysia. A non-linear model has been formulated to examine symmetrical and asymmetrical effects of exchange rate quarterly data from year 2000 to 2017. Results have revealed that both depreciation and appreciation of domestic currency value lead to a decrease in number of inbound tourist arrivals at long run. Moreover, it is found that price rigidity in Malaysian tourism sector may influence decision of tourists to select alternative destination. Besides, reduction in the real-effective exchange rate does not have adverse effect in the long run.

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Devaluation, pass-through and foreign reserves dynamics in a tourism economy

Cited by 16 publications

References 14 publications

Calibrating the Impacts of Regional Trade Integration and Renewable Energy Transition on the Sustainability of International Inbound Tourism Demand in South Asia

Calibrating the Impacts of Regional Trade Integration and Renewable Energy Transition on the Sustainability of International Inbound Tourism Demand in South Asia

Do Country Risks Matter for Tourism Development? International Evidence

Asymmetric effects of real exchange rate on inbound tourist arrivals in Malaysia: An analysis of price rigidity

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