Major Determinants of International Tourism Demand for South Korea:

This study identifies the major determinants of international inbound tourist expenditures in South Korea using regression models. Income, relative prices, exchange rates, promotional expenditures, and dummy variables are incorporated into the models. The empirical results show that the coefficient of income was statistically significant and was highly elastic. The coefficients of relative prices and exchange rates were generally significant and elastic. The coefficient of promotional expenditures was found to be significant, but appeared to be inelastic. The findings of this study provide useful marketing information on how to promote international tourism demand for Korea.