Tourism Demand and Corruption: Are the Impacts of Relative Corruption on International Tourist Arrivals in Thailand Relevant?

  • Wanvilai Chulaphan Faculty of Economics, Maejo University, Chiang Mai, Thailand
  • Jorge Fidel Barahona Caceres Faculty of Economics, Maejo University, Chiang Mai, Thailand
Keywords: relative corruption, tourism demand, Thailand, international tourist arrivals

Abstract

This article evaluates the impact of relative corruption on international tourist arrivals in Thailand using a generalized least squares estimator. We compile a panel dataset that consists of data from 29 countries from 2010 to 2017. The results suggest that relative corruption has a detrimental impact on international tourist arrivals. Moreover, the effect of relative corruption is greater as the distance of corruption between Thailand and the country of origin increases. As a consequence, tourist authorities should develop specific marketing strategies based on the relative levels of corruption exhibited in the tourist market. Furthermore, governments should build long-term and short-term tourism policies that aim at improving tourist perception of corruption in Thailand.

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Published
2021-07-31