Impact of Climate Change on Tourism Demand in Selected Asia Pacific Countries

Meng Chang, Jong (2014) Impact of Climate Change on Tourism Demand in Selected Asia Pacific Countries. PhD thesis, Faculty of Economics and Business.

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Abstract

This study aims to construct the relative tourism climate index (RTCI) and relative holiday climate index (RHCI) to examine their impact on tourism industry in Asia Pacific region. In general, the ten most visited countries in Asia Pacific have been chosen in this study. A detailed analysis of tourism driving forces for each country will be further explored after the selection of targeted countries in Asia Pacific region. The quarterly data spans from 2010 to 2020 will be utilized and analysed using panel Autoregressive Distributed Lag (ARDL) approach in this study. The gravity model has been chosen to formulate the tourism demand models for the ten countries in the Asia Pacific region. The modification has been made on the core gravity model by adding the tourism price and climatic variables to gather more comprehensive tourism information. In general, the climate condition is a significant factor influencing the tourism demand in the Asia Pacific region regardless whether the country is a four seasons or one season country. Besides that, the tourists’ income commonly identifies as an important variable affecting their travel decision, however, it is not their main concern in certain case depends on the travel distance between the countries. Besides that, a mixture results of tourism price and transportation cost have been found mainly due to the travel distance between the countries. To conclude, this study highlighted the importance of the climatic impacts on the tourism industry. Other factors are also important depends on the tourists’ preferences. Therefore, continuous studies in different perspectives are needed because the demand of the tourists will be changed over the time.

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