The Determinants of Tourist Expenditure Per Capita in Thailand: Potential Implications for Sustainable Tourism

Abstract

Tourism authorities in Thailand have consistently pursued profit-seeking mass tourism, resulting in the detriment of the natural resources in major tourist destinations. In response, sustainable tourism projects centered on preserving the environment have been established but neglect the financial needs of tour operators. The objective of this study was to investigate the determinants of tourist expenditure per capita in Thailand using a dataset consisting of 31 countries from 2010 to 2017. The analysis was based on an autoregressive distributed lag model (ARDL) and used a panel estimated generalized least square (ELGS). Generating such knowledge is essential for tourist authorities to develop profitable and sustainable tourism projects in tourist destinations whose natural resources have been affected by profit-seeking tourism. The tourism expenditure per capita is positively affected by word of mouth, income, and the rising prices in other major tourist destinations in Asia. However, it was negatively affected by relative levels of price and corruption. Sustainable tourism projects can be used to develop activities that will help distinguish Thailand from other tourism destinations in Asia. However, in implementing these sustainable tourism initiatives, the mark-up should be minimized to keep tourist prices in Thailand competitive.

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

“…The latter effect echoes the findings obtained in several studies on tourism in Thailand. Accordingly, tourists coming to Thailand are sensitive to safety issues in Thailand in general and locally [ 63 – 67 ]. In this context, different studies have focused on different periods.…”

“…Exchange rate, crime rate, and the calendar season were among the factors that had a significant effect on the number of tourist arrivals. In a more recent study, Chulaphan and Barahona [ 67 ] examined determinants for tourism demand in Thailand using expenditure data of tourists visiting Thailand during 2010 to 2017. As part of their comprehensive study, they found that the price difference between the tourist’s country and Thailand positively affected expenditure.…”

“…This finding is consistent with the aforementioned studies showing that the exchange rate between a tourist’s country and the destination country may affect how much a tourist is spending. Importantly, Chulaphan and Barahona [ 67 ] investigated the effect of corruption in Thailand as seen from the perspective of the tourist. Not surprisingly, they found for the time period under consideration that when corruption in Thailand was perceived as high then expenditure was reduced.…”

The Application of a Two-Stage Decision Model to Analyze Tourist Behavior in Accommodation

“…A detailed analysis of the variations in the intention to use accommodation and accommodation expenditure may be a valuable topic for future research. Finally, some researchers have broadened the knowledge of tourism expenditure by adopting a new analytical approach (e.g., Alfarhan et al 2022;Chulaphan and Barahona 2021;Pellegrini et al 2021). With regard to the different levels of service and nature of accommodation, many facets of accommodation expenditure decisions may need to be considered, because accommodation expenditure is not a single product but rather a number of interrelated subproducts.…”

“…The role of information sources in predicting travel spending behaviors represents new possibilities for analyzing the determinants of expenditure by using QR. Chulaphan and Barahona (2021) investigated the determinants of tourist expenditure per capita in Thailand by utilizing an autoregressive distributed lag model (ARDL) and using panel-estimated generalized least square (EGLS). Such knowledge is essential for tourist authorities to develop profitable and sustainable tourism projects in destinations whose natural resources have been affected by profit-seeking tourism.…”