4.5 Article

Exploring the interdependency and determinants of tourism participation, expenditure, and duration: An analysis of Taiwanese citizens traveling abroad

Journal

TOURISM ECONOMICS
Volume 27, Issue 4, Pages 649-669

Publisher

SAGE PUBLICATIONS LTD
DOI: 10.1177/1354816619896656

Keywords

bivariate model; discrete-continuous decision; duration; expenditure; tourism participation

Funding

  1. Ministry of Science and Technology of Taiwan [MOST 105-2410-H-025-017/106-2410-H-025-024]

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This study introduces a new framework for investigating the interdependence and determinants of tourism participation, expenditure, and duration. Findings from an empirical study using travel data from Taiwanese citizens show significant relationships between participation and expenditure, as well as between expenditure and duration. Package and frequent travelers tend to spend more on shorter trips, while individual and independent travelers are more cost-conscious and travel for longer periods.
This study proposes a novel framework to investigate the interdependence and determinants of tourism participation, expenditure, and duration related to tourism behavior. A discrete-continuous model was constructed to jointly estimate the participation and expenditure decisions. Then, a structural equation model was used to explore the corresponding influential determinants of tourism expenditure and trip duration. An empirical study was conducted using historical travel data collected from Taiwanese citizens traveling abroad. Results revealed a significant relationship between participation and expenditure as well as between expenditure and duration. Furthermore, package and frequent travelers were willing to spend more on trips of shorter duration, but individual and independent travelers were more cost-conscious and travel for longer periods. Overall, time constraints were found to take priority over personal income when making tourism decisions. These findings help travel agents and policymakers to better understand travelers' needs and develop tourism policies.

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