Does international trade promote international tourism demand? Evidence from Thailand's trading partners

Abstract

     The purpose of this study was to analyze the relationship between international trade and international tourism demand in Thailand. Using a dataset of 207 trade partnership countries of Thailand, it was found that the degree of trade openness was positively correlated with international tourism demand. A percentage increase in trade share to GDP contributed about 0.046 percent of short-term foreign tourism demand and 0.807 percent of long-term tourism demand in Thailand. The import volume from origin countries' tourists to Thailand also increased the short-term tourism demand by 0.029 percent and the long-term tourism demand by 0.592 percent in Thailand. These results can be supportive of government strategies that aim to enhance the country's trade volume as well as stimulate Thailand's international tourism demand.