Exploring the interdependency and determinants of tourism participation, expenditure, and duration: An analysis of Taiwanese citizens traveling abroad

Chih-Wen Yang, Cheng-Lung (Richard) Wu and Jin-Long Lu
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Chih-Wen Yang: 63379National Taichung University of Science and Technology, Taichung
Cheng-Lung (Richard) Wu: 7800University of New South Wales, Australia
Jin-Long Lu: 517768National Kaohsiung University of Science and Technology, Kaohsiung

Tourism Economics, 2021, vol. 27, issue 4, 649-669

Abstract: This study proposes a novel framework to investigate the interdependence and determinants of tourism participation, expenditure, and duration related to tourism behavior. A discrete–continuous model was constructed to jointly estimate the participation and expenditure decisions. Then, a structural equation model was used to explore the corresponding influential determinants of tourism expenditure and trip duration. An empirical study was conducted using historical travel data collected from Taiwanese citizens traveling abroad. Results revealed a significant relationship between participation and expenditure as well as between expenditure and duration. Furthermore, package and frequent travelers were willing to spend more on trips of shorter duration, but individual and independent travelers were more cost-conscious and travel for longer periods. Overall, time constraints were found to take priority over personal income when making tourism decisions. These findings help travel agents and policymakers to better understand travelers’ needs and develop tourism policies.

Keywords: bivariate model; discrete-continuous decision; duration; expenditure; tourism participation (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:27:y:2021:i:4:p:649-669

DOI: 10.1177/1354816619896656

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