Determinants of tourist expenditure in Fiji : a cointegration approach

Narayan, Paresh Kumar 2003, Determinants of tourist expenditure in Fiji : a cointegration approach, Pacific tourism review, vol. 6, no. 3-4, pp. 159-167.

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Title Determinants of tourist expenditure in Fiji : a cointegration approach
Author(s) Narayan, Paresh KumarORCID iD for Narayan, Paresh Kumar
Journal name Pacific tourism review
Volume number 6
Issue number 3-4
Start page 159
End page 167
Publisher Cognizant Communication Corp.
Place of publication Elmsford, N.Y.
Publication date 2003
ISSN 1088-4157
Summary Tourism is Fiji's largest industry in terms of foreign exchange earnings and employment creation. The industry earns around F$600 million per annum in foreign exchange, employs around 40,000 people, and tourist expenditure per capita is valued at around F$671. On the basis of this contribution, the industry is seen as a catalyst for economic development in Fiji; hence, it is imperative to understand the behavior of the industry. This article focuses on examining the determinants of tourist expenditure in Fiji. Using cointegration analysis and error correction models, the article finds that in the long run, real GDP in the country of origin impacts tourist spending in Fiji positively while prices and transport costs (airfares) have a negative effect. In the short run, coups d'êtat impact tourist expenditure negatively. It is envisaged that these results will help Fiji's policy makers and tourism industry stakeholders to understand the industry better.
Language eng
Field of Research 150606 Tourist Behaviour and Visitor Experience
HERDC Research category C1.1 Refereed article in a scholarly journal
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Document type: Journal Article
Collections: Faculty of Business and Law
School of Accounting, Economics and Finance
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