Determinants Influencing the Demand for International Tourism in Thailand



Economic Growth, Air pollution, Tourism, Exchange rate, Thailand


An anticipated result of trade liberalisation is a rise in the influx of international tourists. The aforementioned outcome stems from the prevalent phenomenon of trading entities engaging in cross-border activities to partake in various commercial endeavours, including the establishment of complex business networks, the formation of collaborative business ventures, and the actual implementation of business transactions. The primary aim of this study is to investigate the factors that influenced international tourism in Thailand from 2010 to 2019, spanning a duration of ten years. The research has utilised economic growth, exchange rate, trade liberalisation, air pollution, and tourism infrastructure as crucial factors influencing international tourism in Thailand. The dataset consists of data collected from 20 prominent tourist economies that have visited Thailand during the period from 2010 to 2019. The justification for utilising data up until the year 2019 stems from the notable influence of the COVID-19 pandemic on the tourism sector during the latter portion of that year. Hence, the data obtained during this specific timeframe may not be suitable for conducting a comprehensive analysis of tourism demand. The analysis utilises a vector error correction model. The expansion of the tourism industry is influenced by economic growth, trade liberalisation, and the presence of tourist-friendly infrastructure, as indicated by this study. The discovery of positive coefficients in the analysis lends support to the previously mentioned conclusion. However, the correlation between air pollution and the expansion of tourism is a subject of great interest that necessitates additional research in order to comprehend the intricate mechanisms involved. This study represents a pioneering contribution to the examination of issues pertaining to international tourism in Thailand.