Risk Spillovers in Returns for Chinese and International Tourists to Taiwan

Chia Lin Chang*, Shu Han Hsu, Michael McAleer

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

6 Citations (Scopus)
18 Downloads (Pure)

Abstract

Fluctuations in the numbers of visitors directly affect the rates of return on tourism business activities. This article is the first to examine the spillover effects between the rate of change in the numbers of Chinese tourist arrivals and the rate of change in the numbers of international traveler arrivals. The study used daily data from January 1, 2014, to October 31, 2016, with 1,035 observations. The diagonal BEKK model was used to analyze the co-volatility spillover effects between the rate of change in the international travelers and the rate of change in the amount of Chinese tourists visiting Taiwan. The empirical findings suggest that Taiwan should abandon its development strategy of focusing only on a single market, namely, China. Moreover, with the reduction in Chinese tour groups visiting Taiwan, and increases in individual travelers, the Taiwan Government should change its previous travel policies of mainly attracting Chinese tour group travelers and actively promote in-depth tourism among international tourists.

Original languageEnglish
Pages (from-to)335-351
Number of pages17
JournalJournal of Travel Research
Volume59
Issue number2
DOIs
Publication statusPublished - 1 Feb 2020

Bibliographical note

Funding Information:
The authors are most grateful to the editor and two reviewers for very helpful comments and suggestions. For financial support, the first author wishes to thank the Ministry of Science and Technology (MOST), Taiwan, and the third author acknowledges the Australian Research Council and the Ministry of Science and Technology (MOST), Taiwan. The author(s) received no financial support for the research, authorship, and/or publication of this article.

Publisher Copyright:
© The Author(s) 2019.

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