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Discussion Papers
No.600 Determinants of Inbound Tourists in Cambodia: A Dynamic Panel Data Approach
June 2016
ABSTRACT
Understanding the determinants of tourism demand is crucial for the tourism sector. This paper develops a dynamic panel model to examine the determinants of inbound tourists to Siem Reap airport, Phnom Penh airport, and land and waterway borders in Cambodia. Consistent with the consumer theory of tourism consumption, a 10% increase in the origin country GDP per capita is predicted to increase the number of tourist visits to Siem Reap airport by 5.8%. A 10% increase in the real exchange rate between the origin country and Cambodia is predicted to decrease the number of tourist visits by 0.89%. In contrast, the number of foreign tourists in a previous period has little effect on the number of foreign tourists in the current period.
Additionally, the determinants are different by the mode of entry to Cambodia.
Keywords: Tourism demand, tourism sector, dynamic panel model, Cambodia
JEL classification: C33, L83, Z32
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