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Determinants of Global Tourism

Determinants of Global Tourism. Kathryn Schoenberger ks7026a@student.american.edu American University School of International Service. Research Question and Hypothesis.

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Determinants of Global Tourism

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  1. Determinants of Global Tourism Kathryn Schoenberger ks7026a@student.american.edu American University School of International Service

  2. Research Question and Hypothesis • What effect do transportation and sanitation infrastructures, access to health care and the level of political corruption have on a country’s receipts from tourism? • Null Hypothesis: There is no statistically significant relationship between a country’s level of transportation and sanitation infrastructure development, access to health care, level of political corruption and the tourism receipts per capita. • Research Hypothesis: There is a statistically significant relationship between a country’s level of transportation and sanitation infrastructure development, access to health care, level of political corruption and the tourism receipts per capita.

  3. Background Information • Kara, Tarim, and Tatoglu Study • Examined factors of quality of the natural and physical environment, the quality of the social environment, the level of economic development, and the price of goods and services in Turkey. • Tourism revenue is positively correlated to the quality of the physical environment, social environment, and level of economic development and is negatively correlated to the price level. • Countries should improve environments of the tourist areas and cut costs to maximize tourism revenue. • Kim and Phakdisoth Study • Studied determinants of inbound tourism to Laos 1995-2004. • Main determinants were; communication and transportation infrastructure, destination risk, bilateral trade, and the distance between the traveler’s country of origin and Laos. • “Supply factors” and “origin-destination” relationship factors are more important than inbound tourists’ income levels.

  4. Data • Unit of Measure: Country • Number of Units: 156 • Sources: Euromonitor International and Transparency International • Dependent Variable • International Tourism Receipts per capita (in USD) • Independent Variables (Interval-Ratio) • Kilometers of road per square kilometer of land • Number of Doctors per 1,000 people • Percent of the Population with Access to improved sanitation • Score on the Corruption Perception Index

  5. Descriptive Statistics

  6. Scatterplots

  7. Histograms

  8. Bivariate Correlation Significance: ***<0.001, **<0.01, *<0.05

  9. Models Significance: ***<0.001, **<0.01, *<0.05

  10. Residuals Scatterplot

  11. Conclusions • Reject the null hypothesis and accept the alternative hypothesis; transportation and sanitation infrastructures, access to health care and the level of political corruption have a strong positive correlation with the amount of tourism receipts per capita a country receives. • Policy Implications • Improve a country’s transparency and international image to increase tourism revenue. • Improve infrastructures and access to health care to increase tourism revenue.

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