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

Author

Listed:
  • Phouphet Kyophilavong

    (National University of Laos)

  • Shandre Thangavelu

    (Sunway University & University of Adelaide)

  • Inpaeng Sayvaya

    (Champasak University)

  • Phongsili Soukchalern

    (National University of Laos)

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.

Suggested Citation

  • Phouphet Kyophilavong & Shandre Thangavelu & Inpaeng Sayvaya & Phongsili Soukchalern, 2024. "Determinant Factors of Tourist Expenditure in the Lao People's Democratic Republic," Working Papers DP-2024-29, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2024-29
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    : international tourists; expenditures; expenditure survey;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development

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