Elasticity of tourism demand by income and price: evidence from domestic tourism of countries in ASEAN

Abstract

In recent years, there have been many publications about the elasticity of international tourism market demand by income and prices, but there is still quite little about domestic tourism demand. This article studies the domestic tourism demand to find the role of income, own price and cross price in the most countries of Association of Southeast Asian Nations. These are developing countries and have great tourism potential. The results show that domestic tourism in these countries is still a luxury service. Price related to domestic tourism is also an important factor and negatively affects domestic tourism demand in these countries. Outbound tourism to countries having shared borders are substitute destinations for domestic tourism. When the same level of tourist income and level of prices related to domestic tourism, Indonesians travel inland highest, followed by Vietnamese, Cambodian, Filipino, Thai people, Malaysian and the people of Laos are the lowest. These findings complement the empirical studies on tourism demand and are the basis for making policy implications for the development of domestic tourism in most countries of the Association of Southeast Asian Nations.