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This study uses an autoregressive distributed lag (ARDL) model to investigate the role of incomes, relative price competitiveness, and substitution prices in tourism demand from Indonesia's six largest countries of origin from 2007Q1 to 2019Q4. Income level, competitive prices, and substitution prices significantly impact the demand for tourism in Indonesia. Malaysia, Singapore, Australia, Japan, and India are income elastic, signaling that tourism is a luxury good, but China (normal good). Malaysia and China are price elastic while Japan, India, Singapore, and Australia are less affected by changes in relative prices. Substitute prices may drive tourist to other destinations if the change in prices is large. © 2020 Editura Universitatii din Oradea. All rights reserved.

This study examines the effect of Malaysia’s domestic taxation policy, price and exchange competitiveness with neighboring countries on international tourism demand in Malaysia based on the quantile estimation. Using monthly-based time series data, which set over the period of 1996-2017, we adopt the bootstrap quantile regression model to provide a comprehensive relationship of international tourism demand theory in Malaysia. The empirical results show that sales tax has a negative relationship with international inbound tourism demand, mainly at the middle quantile stages. Moreover, we also found that price competition from Thailand has a positive influence on Malaysia’s tourism demand; and appreciation of Indonesia’s exchange rate competitiveness tends to lead Malaysia’s tourism demand. These empirical findings open up new insights for policymakers in Malaysia as to how to improve fiscal policies and enhance continual increase of international inbound tourism demand in the upcoming years.

Many scholars perceive price competitiveness as a highly relevant element of tourism competitiveness in improving tourism performance. We focused our research interest specifically to understand whether price competitiveness is an important policy instrument in attracting international tourists and their spending. Our empirical study focused on how price competitiveness behaves as a predictor of tourism performance in different economic conditions and whether price competitiveness is a significant cause of tourism competitiveness in improving tourism performance. For that purpose, we conducted empirical analysis within two stages: moderation analysis to understand how price competitiveness influences tourism performance from the point of view of inbound international tourism and how this relationship behaves in different economic conditions; and mediation analysis to understand whether price competitiveness is relevant cause for tourist competitiveness in improving tourism performance. This study has revealed different views about price competitiveness and its influence on the tourism industry. The findings indicate that price competitiveness has rather limited effects on the outcomes of the tourism industry and is not a cause of overall tourism competitiveness in improving tourism performance.

This study applies Almost Ideal Demand System models to examine Indonesia’s competitiveness as a tourist destination compared to two main competitor countries. The model was used to estimate the sensitivity of tourism demand from seven tourist-main market countries to price changes, the tourists’ total budget and global economic crisis. The model estimated result meets the assumptions of the demand theory: homogeneity and symmetry. The elasticity price shows that Indonesia is more competitive than Thailand among Australian and American tourists; while Indonesia is more competitive than Malaysia among American tourists. The research result also shows that the tourism price is the main determinant affecting the allocation of tourist expenditure in the three destinations.

Many authors have studied the influence exerted by tourism on the economy. Today, Information and Communication Technologies (ICT) are an important factor influencing competitiveness in the tourism sector and consumers’ decision-making concerning tourism purchases. Along with the expansion of the European Union, the revolution in passenger air transportation has spread over new member states in Central and Eastern Europe, including Poland. The authors of this study analyzed ticket prices on Internet websites that aggregate offers from different carriers and on the websites managed by the carriers themselves, specifically studying offers for the most popular flight connections from F. Chopin airport in Warsaw to London, Frankfurt, Munich, and Paris. For each connection, the study examined flights operated by the Polish carrier, i.e., LOT Polish Airlines, and by a carrier originating from a destination country. The analysis of the particular coefficients illustrating the price dispersion for each flight operated by a foreign carrier in comparison to the offer from LOT Polish Airlines points to the conclusion that the tickets offered by the latter were marked by a much narrower price dispersion in contrast to the connections offered by foreign carriers on the same route.

Pricing accommodation is a complex process. This study attempted to provide guidelines for determining competitive prices for hotels and guesthouses in South Africa, the two types of accommodation that hold the largest share of the South African market. A survey was conducted in cooperation with the major role players in South Africa’s accommodation sector: the South African Tourism Service Association (SATSA), the Federated Hospitality Association of Southern Africa (FEDHASA), and the Tourism Grading Council of South Africa (TGCSA). A total of 2,288 questionnaires were sent out via e-mail and 247 were returned completed. The significance of the mean price differences of the star grading levels was tested, and hotels and guesthouses were compared using an independent t test. A significant difference was found between the prices of hotels and guesthouses, especially in the five-star category. The study also revealed a 20% difference between the prices of the star categories. The pricing guidelines provided here can sustain competitiveness with growing profitability https://www.cognizantcommunication.com/journal-titles/tourism-review-international http://www.ingentaconnect.com/contentone/cog/tri/2013/00000017/00000002/art00003 DOI: http://dx.doi.org/10.3727/154427213X13728688260875 NRF (National Research Fund)

This paper analyzes the responsiveness of Thai outbound tourism to East Asian destinations, namely China, Hong Kong, Japan, Taiwan and Korea, to changes in effective relative price of tourism, total real total tourism expenditure, and one-off events. The nonlinear and linear Almost Ideal Demand (AID) models are estimated with monthly data to identify the price competitiveness and interdependencies of tourism demand for competing destinations in both long run (static) and short run error correction (dynamic) specifications. The homogeneity and symmetry restricted long run and short run AID models are estimated to calculate elasticities. The income elasticities, and the compensated and uncompensated own-price and cross-price elasticities, provide useful information for public and private tourism agents at the various destinations to maintain and improve price competitiveness. The empirical results show that price competitiveness is important for tourism demand for Japan, Korea and Hong Kong in the long run, and for Hong Kong and Taiwan in the short run. With regard to long run cross-price elasticities, the substitution effect can be found in the following pairs of destinations: China-Korea, Japan-Hong Kong, Taiwan-Hong Kong, Japan-Korea, and Taiwan-Korea. In addition to the substitution effect, the complementary effect can be found in the following pairs of destinations: China-Hong Kong, China-Japan, China- Taiwan, Japan-Taiwan, and Korea-Hong Kong. Contrary to the findings obtained from the long run AID specification, Japan-Korea and Taiwan-Korea are complements in the short run. Furthermore, the real total tourism expenditure elasticities indicate that China's share of real total tourism expenditure is inelastic in response to a change in real total tourism expenditure, while Korea's share of real total tourism expenditure is most sensitive to changes in expenditure in the long run. The greatest impact on the share of real total tourism expenditure in the short run is tourism demand for Taiwan.