The Major Determinants of Korean Outbound Travel to Australia

Abstract

The aims of the paper are two-fold, namely to analyse the seasonal patterns of tourist arrivals from South Korea to Australia, and to use econometric time series modelling to quantify the factors affecting the flow of international tourists between Australia and Korea. Estimates of the effects of changes in income, relative prices, exchange rates, seasonality and other factors are provided, and the significance of these explanatory variables is tested. Adequate seasonally unadjusted quarterly time series data are required for extended periods to generate more accurate estimates of the range of explanatory variables, and to examine seasonal variations in international tourism demand. Since international tourist flows from South Korea have become an important source of the inbound tourist market, such information is vital to the Australian tourist industry, governments and tourism commissions, which need reliable estimates in order to take effective measures to stimulate tourism.