Does exchange rate affect the foreign tourist arrivals? Evidence in an emerging tourist market

Abstract: The rate of foreign tourist arrivals coming to Vietnam as an emerging tourism market has been increased significantly bringing enormous benefits for improving the socio-economic indicators. The purpose of this paper is to examine the impact of exchange rate policy on the number of foreign tourist arrivals in Vietnam over the period 2006-2018. Our regression results show the exchange rate maintained a positive impact on the demand of foreign tourists and indicate that the domestic currency devaluation also had a positive effect on the number of foreign tourists to Vietnam. Besides, the quantitative result also indicates the number of foreign tourist arrival in the early periods had a positive impact on itself in the current period. Furthermore, the Granger causality test con-firms the existence of a one-way causal relationship between the exchange rate and the number of foreign tourist arrivals. Finally, the paper provides some implications for policymakers in order to efficiently use the exchange rate policy to increase the number of foreign tourist arrivals in the coming time.

How to cite this paper

 Tung, L. (2019). Does exchange rate affect the foreign tourist arrivals? Evidence in an emerging tourist market.Management Science Letters , 9(8), 1141-1152.

Refrences

Balaguer, J., & Cantavella-Jorda, M. (2002). Tourism as a long-run economic growth factor: the Spanish case. Applied economics, 34(7), 877-884.
Surugiu, C., Leitão, N. C., & Surugiu, M. R. (2011). A panel data modelling of international tourism demand: Evidences for Romania. Economic research-Ekonomska istraživanja, 24(1), 134-145.
Clark, H., & and Miller, K. (2017). Vietnamese food: 40 delicious dishes you'll love, CNN travel, sourced at https://edition.cnn.com/travel/article/vietnam-food-dishes/index.html
Doosti, S., Jalilvand, M. R., Asadi, A., Khazaei Pool, J., & Mehrani Adl, P. (2016). Analyzing the in-fluence of electronic word of mouth on visit intention: the mediating role of tourists’ attitude and city image. International Journal of Tourism Cities, 2(2), 137-148.
Granger, C. W. (1988). Some recent development in a concept of causality. Journal of economet-rics, 39(1-2), 199-211.
Gujarati, D. N. (2004). Basic econometrics, 4th ed., Mc Graw-Hill, USA.
Lim, C., & Zhu, L. (2017). Dynamic heterogeneous panel data analysis of tourism demand for Singa-pore. Journal of Travel & Tourism Marketing, 34(9), 1224-1234.
McDowall, S., & Wang, Y. (2009). An analysis of international tourism development in Thailand: 1994–2007. Asia Pacific Journal of Tourism Research, 14(4), 351-370.
Meo, M. S., Chowdhury, M. A. F., Shaikh, G. M., Ali, M., & Masood Sheikh, S. (2018). Asymmetric impact of oil prices, exchange rate, and inflation on tourism demand in Pakistan: new evidence from nonlinear ARDL. Asia Pacific Journal of Tourism Research, 23(4), 408-422.
Quadri, D. L., & Zheng, T. (2010). A revisit to the impact of exchange rates on tourism demand: The case of Italy. The Journal of Hospitality Financial Management, 18(2), 47-60.
Tang, J., Sriboonchitta, S., Ramos, V., & Wong, W. K. (2016). Modelling dependence between tourism demand and exchange rate using the copula-based GARCH model. Current Issues in Tour-ism, 19(9), 876-894.
Yazdi, S. K., & Khanalizadeh, B. (2017). Tourism demand: a panel data approach. Current Issues in Tourism, 20(8), 787-800.
Vietnam National Administration of Tourism (2018). Tourism statistics. Available at http://www.vietnamtourism.gov.vn/
Vita, G. D., & Kyaw, K. S. (2013). Role of the exchange rate in tourism demand. Annals of Tourism Research, 43, 624-627.
Viglia, G., Minazzi, R., & Buhalis, D. (2016). The influence of e-word-of-mouth on hotel occupancy rate. International Journal of Contemporary Hospitality Management, 28(9), 2035-2051.
World Tourist Organization (2017). Tourism Highlights - 2017 Editions. Madrid, Spain.
Webber, A. G. (2001). Exchange rate volatility and cointegration in tourism demand. Journal of Travel research, 39(4), 398-405.
World Bank (2018). Overview. [Online access September 12, 2018] http://www.worldbank.org/en/country/vietnam/overview
World Economic Forum (2007). The Travel & Tourism Competitiveness Report 2007. Geneva, Switzer-land.
World Economic Forum (2009). The Travel & Tourism Competitiveness Report 2009. Geneva, Switzer-land.
World Economic Forum (2011). The Travel & Tourism Competitiveness Report 2011. Gene-va,Switzerland.
World Economic Forum (2013). The Travel & Tourism Competitiveness Report 2013. Gene-va,Switzerland.
World Economic Forum (2015). The Travel & Tourism Competitiveness Report 2015. Gene-va,Switzerland.
World Economic Forum (2017). The Travel & Tourism Competitiveness Report 2017. Gene-va,Switzerland.
World Tourist Organization (2018). 2017 Annual Report. Madrid, Spain.