The Impact of Socioeconomic and Travel-Related Aspects on the Allocation of Expenditures by Tourists Traveling to Taiwan

Abstract

This paper analyzes the spending patterns of foreign tourists visiting Taiwan in 2019. Then, the study examines the impact of socioeconomic and travel-related factors on tourists' allocation of expenditures for five essential trip products. By comparing the behaviors of tourists from different nations, the study investigates their priorities for travel expenses such as food, accommodation, transportation, and shopping. The study's OLS regression results show that distance, visit times, travel modes, duration of stays, number of visitors, gender, income, age, and education significantly affect tourists' travel expenditures in Taiwan. The findings reveal that longer-haul tourists spend more on travel products due to their experience. In addition, tourists traveling with companions spend more than those traveling alone, and males spend more on accommodation while females prefer shopping. The study also highlights the positive impact of the number of nights spent on the purchase level of travel goods and services. These insights provide valuable information on the travel-related variables that influence international tourists' spending behavior in Taiwan.

References

[1] Abbruzzo, Antonino, Juan Gabriel Brida, and Raffaele Scuderi. 2014. Determinants of individual tourist expenditure as a network: Empirical findings from Uruguay. Tourism Management 43:36-45. DOI:https://doi.org/10.1016/j.tourman.2014.01.014
[2] Aguiló, Eugeni, Jaume Rosselló, and Mar Vila. 2017. Length of stay and daily tourist expenditure: A joint analysis. Tourism Management Perspectives 21:10-17. DOI: https://doi.org/10.1016/j.tmp.2016.10.008
[3] Ahn, Young Joo, Unji Baek, Byeong Cheol Lee, and Seul Ki Lee. 2018. An almost ideal demand system (AIDS) analysis of Korean travelers' summer holiday travel expenditure patterns. International Journal of Tourism Research 20 (6):768-778. https://doi.org/10.1002/jtr.2229
[4] Alegre, Joaquín, and Magdalena Cladera. 2010. Tourist expenditure and quality: why repeat tourists can spend less than first-timers. Tourism Economics 16 (3):517-533. DOI:https://doi.org/10.5367/000000010792278419
[5] Anderson, Wineaster. 2010. Determinants of all‐inclusive travel expenditure. Tourism Review 65 (3):4-15. DOI: https://doi.org/10.1108/16605371011083495
[6] Athanasopoulos, George, Minfeng Deng, Gang Li, and Haiyan Song. 2014. Modelling substitution between domestic and outbound tourism in Australia: A system-of-equations approach. Tourism Management 45:159-170. DOI: https://doi.org/10.1016/j.tourman.2014.03.018
[7] Barros, Carlos Pestana, and Luis Pinto Machado. 2010. The length of stay in tourism. Annals of Tourism Research 37 (3):692-706. DOI: https://doi.org/10.1016/j.annals.2009.12.005
[8] Bernini, Cristina, and Maria Francesca Cracolici. 2015. Demographic change, tourism expenditure and life cycle behaviour. Tourism Management 47:191-205. DOI: https://doi.org/10.1016/j.tourman.2014.09.016
[9] Brida, Juan Gabriel, and Raffaele Scuderi. 2013. Determinants of tourist expenditure: A review of microeconometric models. Tourism Management Perspectives 6:28-40. DOI:https://doi.org/10.1016/j.tmp.2012.10.006
[10] Cai, Zhenrao, Chaoyang Fang, Qian Zhang, and Fulong Chen. 2021. Joint development of cultural heritage protection and tourism: the case of Mount Lushan cultural landscape heritage site. Heritage Science 9 (1):1-16. DOI: https://doi.org/10.1186/s40494-021-00558-5
[11] Chang, Kuo-Liang, Chiang-Ming Chen, and Timothy J. Meyer. 2013. A comparison study of travel expenditure and consumption choices between first-time and repeat visitors. Tourism Management 35:275-277. DOI: https://doi.org/10.1016/j.tourman.2012.06.006
[12] Chen, ChiangMing, and Kuo-Liang Chang. 2012. The influence of travel agents on travel expenditures. Annals of Tourism Research 39 (2):1258-1263. DOI: https://doi.org/10.1016/j.annals.2012.01.005
[13] Chen, Tzong Shyuan, Min Shiang Hwang, and Yin Ju Chang. 2022. The effect of wealth effect and population aging on tourism expenditure. Current Issues in Tourism 25 (11):1852-1865. DOI:https://doi.org/10.1080/13683500.2021.1937959
[14] Craggs, Ruth, and Peter Schofield. 2009. Expenditure-based segmentation and visitor profiling at The Quays in Salford, UK. Tourism Economics 15 (1):243-260. DOI: https://doi.org/10.5367/000000009787536753
[15] Divisekera, Sarath. 2010. Economics of tourist's consumption behaviour: Some evidence from Australia. Tourism Management 31 (5):629-636. DOI: https://doi.org/10.1016/j.tourman.2009.07.001
[16] Dixon, Anthony W, Shelia Backman, Kenneth Backman, William Norman, and Tourism. 2012. Expenditure-based segmentation of sport tourists. Journal of Sport 17 (1):5-21. DOI:https://doi.org/10.1080/14775085.2011.635017
[17] Dwyer, Larry, and Chulwon Kim. 2003. Destination competitiveness: determinants and indicators. Current Issues in Tourism 6 (5):369-414. DOI: https://doi.org/10.1080/13683500308667962
[18] Ferrer-Rosell, Berta, Germà Coenders, and Esther Martínez-Garcia. 2015. Determinants in tourist expenditure composition—The role of airline types. Tourism Economics 21 (1):9-32. DOI: https://doi.org/10.5367/te.2014.0434
[19] Flognfeldt Jr, Thor. 1999. Traveler geographic origin and market segmentation: The multi trips destination case. Journal of Travel and Tourism Marketing 8 (1):111-124. DOI: https://doi.org/10.1300/J073v08n01_07
[20] García-Sánchez, Antonio, Ester Fernández-Rubio, and M Dolores Collado. 2013. Daily expenses of foreign tourists, length of stay and activities: Evidence from Spain. Tourism Economics 19 (3):613-630. DOI:https://doi.org/10.5367/te.2013.0218
[21] Gokovali, Ummuhan, Ozan Bahar, and Metin Kozak. 2007. Determinants of length of stay: A practical use of survival analysis. Tourism Management 28 (3):736-746. DOI: https://doi.org/10.1016/j.tourman.2006.05.004
[22] Guillet, Basak Denizci, Andy Lee, Rob Law, and Rosanna Leung. 2011. Factors Affecting Outbound Tourists' Destination Choice: The Case of Hong Kong. Journal of Travel and Tourism Marketing 28 (5):556-566. DOI:https://doi.org/10.1080/10548408.2011.588120
[23] Gursoy, Dogan, and Ken W McCleary. 2004. An integrative model of tourists' information search behavior. Annals of Tourism Research 31 (2):353-373. DOI: https://doi.org/10.1016/j.annals.2003.12.004
[24] Ho, Grace, and Bob McKercher. 2014. A Comparison of Long-Haul and Short-Haul Business Tourists of Hong Kong. Asia Pacific Journal of Tourism Research 19 (3):342-355. DOI:https://doi.org/10.1080/10941665.2012.746235
[25] Hosseini, Seyed Ali, Mehdi Karoubi, Mohammadreza Akhlaghi, and Fatemeh Salarvandian. 2022. Determinants of Iranian households’ expenditure on domestic trips. Iranian Economic Review. DOI:https://doi.org/10.22059/IER.2022.86534
[26] Jang, SooCheong, Joseph A Ismail, and Sunny Ham. 2001. Heavy spenders, medium spenders, and light spenders of Japanese outbound pleasure travelers. Journal of Hospitality and Leisure Marketing 9 (3-4):83-106. DOI: https://doi.org/10.1300/J150v09n03_07
[27] Jiménez, Juan Luis, Jorge Valido, and Alfonso Antonio Pellicer. 2023. Evaluating the effect of air transport resident subsidies on non-residents tourists’ expenditure. Journal of Air Transport Management 106:102319. DOI: https://doi.org/10.1016/j.jairtraman.2022.102319
[28] Kalantari, Hassan Daronkola, Ryan Jopp, Hassan F. Gholipour, Weng Marc Lim, Ai Ling Lim, and Lynn Ling Min Wee. 2022. Information source and tourist expenditure: Evidence from Sarawak, Malaysia. Current Issues in Tourism:1-35. DOI: https://doi.org/10.1080/13683500.2022.2144154
[29] Kim, Jinok S., Timothy J. Lee, and Nam-Jo Kim. 2021. What motivates people to visit an unknown tourist destination? Applying an extended model of goal-directed behavior. International Journal of Tourism Research 23 (1):13-25. https://doi.org/10.1002/jtr.2388
[30] Kim, Samuel Seongseop, Choong Ki Lee, and David B Klenosky. 2003. The influence of push and pull factors at Korean national parks. Tourism Management 24 (2):169-180. DOI: https://doi.org/10.1016/S0261-5177(02)00059-6
[31] Kruger, Martinette, and Melville Saayman. 2010. Travel motivation of tourists to Kruger and Tsitsikamma National Parks: A comparative study. South African Journal of Wildlife Research 40 (1):93-102. DOI:https://hdl.handle.net/10520/EJC117327
[32] Lee, Seul Ki, Won Sok Jee, Daniel C. Funk, and Jeremy S. Jordan. 2015. Analysis of attendees' expenditure patterns to recurring annual events: Examining the joint effects of repeat attendance and travel distance. Tourism Management 46:177-186. DOI: https://doi.org/10.1016/j.tourman.2014.07.001
[33] Lee, Tsung Hung, Fen-Hauh Jan, and Jui-Tu Liu. 2021. Developing an indicator framework for assessing sustainable tourism: Evidence from a Taiwan ecological resort. Ecological Indicators 125:107596. DOI:https://doi.org/10.1016/j.ecolind.2021.107596
[34] Lehto, Xinran Y., Joseph T. O’Leary, and Alastair M. Morrison. 2004. The effect of prior experience on vacation behavior. Annals of Tourism Research 31 (4):801-818. DOI:https://doi.org/10.1016/j.annals.2004.02.006
[35] Li, Gang, Haiyan Song, and Stephen F Witt. 2004. Modeling tourism demand: A dynamic linear AIDS approach. Journal of Travel Research 43 (2):141-150. DOI: https://doi.org/10.1177/0047287504268235
[36] Mehmetoglu, Mehmet. 2007. Nature-based tourists: The relationship between their trip expenditures and activities. Journal of Sustainable Tourism 15 (2):200-215. DOI: https://doi.org/10.2167/jost642.0
[37] Mok, Connie, and Thomas J. Iverson. 2000. Expenditure-based segmentation: Taiwanese tourists to Guam. Tourism Management 21 (3):299-305. DOI: https://doi.org/10.1016/S0261-5177(99)00060-6
[38] Mok, Connie, and Terry Lam. 1997. A model of tourists shopping propensity: a case of Taiwanese visitors to Hong Kong. Pacific Tourism Review 1 (2):137-145.
[39] Nicolau, Juan L. 2008. Characterizing tourist sensitivity to distance. Journal of Travel Research 47 (1):43-52. DOI: https://doi.org/10.1177/0047287507312414
[40] Oppermann, Martin. 1997. First-time and repeat visitors to New Zealand. Tourism Management 18 (3):177-181. DOI: https://doi.org/10.1016/S0261-5177(96)00119-7
[41] Pizam, Abraham, and Silvia Sussmann. 1995. Does nationality affect tourist behavior? Annals of Tourism Research 22 (4):901-917. DOI: https://doi.org/10.1016/0160-7383(95)00023-5
[42] Pouta, Eija, Marjo Neuvonen, and Tuija Sievänen. 2006. Determinants of nature trip expenditures in Southern Finland–implications for nature tourism development. Scandinavian Journal of Hospitality and Tourism 6 (2):118-135. DOI: https://doi.org/10.1080/15022250600658937
[43] Pulido-Fernández, Juan Ignacio, Pablo Juan Cárdenas-García, and Isabel Carrillo-Hidalgo. 2017. Explaining tourism expenditure based on trip characteristics in emerging urban-cultural destinations. Tourism Review 72 (1):68-86. DOI: https://doi.org/10.1108/TR-09-2016-0040
[44] Saayman, Melville, Riaan Rossouw, and Waldo Krugell. 2012. The impact of tourism on poverty in South Africa. Development Southern Africa 29 (3):462-487. DOI: https://doi.org/10.1080/0376835X.2012.706041
[45] Sciortino, Caterina, and Stefano De Cantis. 2022. Can Nationality Explain Economic Tourist Behaviour? A Thematic Review. Journal of Tourism and Hospitality Management 10 (1):18-23. DOI:https://doi.org/10.17265/2328-2169/2022.01.003
[46] Smolčić Jurdana, Dora, and Daniela Soldić Frleta. 2017. Satisfaction as a determinant of tourist expenditure. Current Issues in Tourism 20 (7):691-704. DOI: https://doi.org/10.1080/13683500.2016.1175420
[47] Stynes, Daniel J, and Eric M White. 2006. Reflections on measuring recreation and travel spending. Journal of Travel Research 45 (1):8-16. DOI: https://doi.org/10.1177/0047287506288
[48] Thrane, Christer. 2002. Jazz festival visitors and their expenditures: Linking spending patterns to musical interest. Journal of Travel Research 40 (3):281-286. DOI: https://doi.org/10.1177/0047287502040003006
[49] Wöber, Karl W. 2007. Data Envelopment Analysis. Journal of Travel and Tourism Marketing 21 (4):91-108. DOI: https://doi.org/10.1300/J073v21n04_07
[50] Wu, Chenguang. 2010. Econometric analysis of tourist expenditures, PhD diss., The Hong Kong Polytechnic University
[51] Xiao, G., Q. Cheng, and C. Zhang. 2019. Detecting Travel Modes Using Rule-Based Classification System and Gaussian Process Classifier. IEEE Access 7:116741-116752. DOI:https://doi.org/10.1109/ACCESS.2019.2936443
[52] Zhang, Yishuo, Gang Li, Birgit Muskat, Rob Law, and Yating Yang. 2020. Group pooling for deep tourism demand forecasting. Annals of Tourism Research 82:102899. DOI:https://doi.org/10.1016/j.annals.2020.102899
Published
2023-09-29
How to Cite
PHAN, Kieu-Thi et al. The Impact of Socioeconomic and Travel-Related Aspects on the Allocation of Expenditures by Tourists Traveling to Taiwan. Journal of Environmental Management and Tourism, [S.l.], v. 14, n. 6, p. 2755 - 2773, sep. 2023. ISSN 2068-7729. Available at: <https://journals.aserspublishing.eu/jemt/article/view/8095>. Date accessed: 19 june 2024. doi: https://doi.org/10.14505/jemt.v14.6(70).23.