A case study: The impact of low-cost carriers on inbound tourism of Saudi Arabia |
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| Affiliation: | 1. The School of Aviation, Massey University, Palmerston North, New Zealand;2. Aviation Policy and Research Center, The Chinese University of Hong Kong, New Territories, Hong Kong;1. University of Belgrade - Faculty of Transport and Traffic Engineering; Division of Airports and Air Traffic Safety, Vojvode Stepe 305, Belgrade 11000, Serbia;1. University of Cologne, Department of Corporate Development and Organization, Albertus-Magnus-Platz, 50923 Cologne, Germany;2. University of Southern Denmark, Department of Border Region Studies, Alsion 2, 6400 Sønderborg, Denmark;3. Massachusetts Institute of Technology, Laboratory for Aviation and the Environment, 77 Massachusetts Avenue, Cambridge, MA 02139, United States;1. College of Business and Administration, University of New Orleans, New Orleans, LA 70148, USA;2. Robert H. Smith School of Business, University of Maryland, College Park, MD 20742, USA;1. Department of Tourism Studies, Kongju National University, South Korea;2. College of Hospitality & Technology Leadership, University of South Florida, Sarasota-Manatee, FL, USA;3. School of Hospitality & Tourism Management (SHTM), University of Jammu, India;1. Schar School of Policy and Government, George Mason University, Arlington, VA, USA;2. Faculty of Logistics, University of Maribor, Slovenia;1. Engineering Systems, Massachusetts Institute of Technology, 77 Massachusetts Avenue, E40-246, Cambridge, MA 02139, USA;2. Civil and Environmental Engineering and Engineering Systems, Massachusetts Institute of Technology, 77 Massachusetts Avenue, 1-163, Cambridge, MA 02139, USA;3. Aeronautics and Astronautics and Engineering Systems, Massachusetts Institute of Technology, 77 Massachusetts Avenue, 33-328, Cambridge, MA 02139, USA |
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| Abstract: | This study investigates the impact of low-cost carriers (LCCs) on Saudi Arabia's tourism demand. It also provides an understanding of the relationship between air transport development and tourism development in the Gulf region. The Box–Jenkins SARIMA-X models were employed to model and forecast international tourist arrivals to Saudi Arabia, using monthly international tourist arrivals to Saudi Arabia from July 2010 to December 2015. The forecasting models were significantly accurate, with lower values of MAPE, MAP, and RMSE. The findings suggest that an increase in airline capacity, religious travel, and airline competition are associated with the increasing international tourist arrivals to Saudi Arabia. This also indicates that there is a positive relationship between air transport development and tourism development. Further aviation liberalisation in the Gulf region is discussed to give opportunities for the region's LCCs to increase their share of the increasing air travel demand, thereby enhancing tourism development. |
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| Keywords: | Air transport development and tourism Low-cost carriers (LCCs) Box–Jenkins SARIMA-X model Saudi Arabia The Gulf region |
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