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  • Determinants of Tourist Expenditure in Fiji: A Cointegration Approach

    Author(s)
    Narayan, Paresh Kumar
    Griffith University Author(s)
    Narayan, Paresh
    Year published
    2003
    Metadata
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    Abstract
    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 ...
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    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'괡t 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.
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    Journal Title
    Pacific Tourism Review
    Volume
    6
    Issue
    3/4
    Publisher URI
    http://www.cognizantcommunication.com/
    Subject
    Tourism
    Publication URI
    http://hdl.handle.net/10072/26944
    Collection
    • Journal articles

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