Factor influencing of international tourism demand in Laos PDR

Abstract

The tourism industry has been an important contributor to Laos's economy and it's a very significant strategy for the development this paper which investigates the significant influence of economic factor in deferring international tourism demands in Lao PDR. the demand for tourism can be explained by macro-economic variables, including GDP per capital, in the origin countries, tourism price, namely the cost of traveling from origin countries, exchange rate and relationship price consumer price index. The study was used to data between 2003-2014. The LLE, IPS, ADE, and T-test were utilized in order to evaluate unit root. Co-integration and ECM were estimates in order to explain the levels of number tourist in Laos PDR. The result showed that the long and short run equilibrium was found to be significant across all variables; the income variable appeared to be highly sensitive and tourism price.