Do institutions matter for tourism spending?

Institutional frameworks are important for individuals’ attitudes and behaviours, and thus they are important for travel decisions. This study endeavours to examine the influence of various formal and informal institutional factors on tourism spending for a global sample of 120 countries from 2002 t...

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Bibliographic Details
Published inTourism economics : the business and finance of tourism and recreation Vol. 29; no. 1; pp. 248 - 281
Main Author Nguyen, Canh Phuc
Format Journal Article
LanguageEnglish
Published London, England SAGE Publications 01.02.2023
Sage Publications Ltd
Subjects
Institutions
Legal system
Method of moments
Organizational aspects
Religion
Tourism
Tourism
formal institutions
spending
informal institutions
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Summary:Institutional frameworks are important for individuals’ attitudes and behaviours, and thus they are important for travel decisions. This study endeavours to examine the influence of various formal and informal institutional factors on tourism spending for a global sample of 120 countries from 2002 to 2019. Applying the two-step system generalised method of moments estimate, the results are robust and consistent. First, informal institutions, that is, colonial history, socialist history, origin of the legal system, religion and language, are important explanatory factors for differences in tourism spending between countries. Second, improvements in formal institutions appear to increase domestic tourism spending while they decrease outbound tourism spending. The results have important policy implications. JEL code: E02, Z30, Z32.
ISSN:1354-8166
2044-0375
DOI:10.1177/13548166211045847