How Important ICT, Transport, and Inflation Are to Inbound Tourists, and What South Asia Needs to Do About Them.

Abstract

The primary goal of this study is to investigate the possible influence of tools for information and communication (ICT), modes of transportation, and inflation on the requirement for inbound tourists in South Asian states by using panel data. In order to check whether or not the variables are stationary, we use the FADF, FPP, IPS, and LLC unit root tests. For the purpose of determining whether or not there is cointegration over the long term, this study uses panel cointegration and autoregressive distributed lag (ARDL) estimators. The likely outcomes indicate that both the Pedroni and Johansen-Fisher panel cointegration approaches provide evidence of the presence of a long-term link between ICT, transport, inflation, and inbound tourism. The fact that both approaches yield the same estimated results demonstrates this. The outcomes of the study show that there is no cointegration between the factors. Also, long-term data show that transport and ICT have a direct and significant link with inbound tourism in South Asia, while inflation has a negative and insignificant link with inbound tourism in South Asia. But ICT and transport have a negative and small effect on tourists from outside the country. This study shows that improving transport and ICT can increase the demand for outbound tourism in South Asia, but the inflation rate needs to be kept in check. For a developing area like South Asia, this could have big effects on the tourism business's aptitude to grow and stay strong. This paper is the first of its kind to use modern econometric methods to look at the effects of ICT, transport, and inflation in South Asia. Inbound tourism demand research helps the government and policymakers come up with good public policies that will put South Asia in a better situation to benefit from the global tourism industry, which is very competitive.