Determinant Factors of Tourist Expenditure in the Lao People's Democratic Republic

Phouphet Kyophilavong, Shandre Thangavelu, Inpaeng Sayvaya and Phongsili Soukchalern
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Shandre Thangavelu: Sunway University & University of Adelaide
Inpaeng Sayvaya: Champasak University
Phongsili Soukchalern: National University of Laos

No DP-2024-29, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This paper examines the key factors influencing the international tourist expenditure in the Lao People’s Democratic Republic (Lao PDR) using a unique survey data of international tourists. The empirical analysis was implemented with quantile regression technique. The data are based on the 2019 survey of international tourist arrivals from the Ministry of Information, Culture and Tourism (MICT), Lao (Lao PDR). The results indicate that the increase in international tourist arrivals and improving domestic and international flights have had a strong positive impact on international tourist expenditure in Lao PDR. In addition, the growth of hotel and service availability, and promotion of tourist activities in Luang Prabang and the capital city of Vientiane have had a positive impact on tourist expenditure. The promotion of travel for senior citizens, advertising on social media (such as Facebook or Twitter) and visits to Luang Prabang (a World Heritage site) have had a positive impact on overall international tourist expenditure.

Keywords: : international tourists; expenditures; expenditure survey (search for similar items in EconPapers)
JEL-codes: D12 F20 F63 (search for similar items in EconPapers)
Date: 2024-11-18
New Economics Papers: this item is included in nep-sea and nep-tur
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