Impact of macroeconomic indicators on development patterns: Case of tourism industry in ASEAN region

Abstract

The purpose of this research is to examine the impact of macroeconomic indicators on tourism revenue from five states of ASEAN region. To address this objective secondary data is collected over last 18 years from 2001-2017 with annual observations. Macroeconomic indicators include inflation, oil prices, industrial growth, exchange rate stock market index, and gross domestic product over time. Method of the study is based on regression OLS estimation with robust standard errors. Empirical findings indicates that key determinants for the change in tourism revenue in selected countries are exchange rate, stock market index, inflation and industrial growth. However, impact of GDP on tourism revenue is also significant for Malaysia, Indonesia, and Brunei. Study findings can be very much beneficial for present decision-making regarding growth in tourism industry in ASEAN region. Limitations of the study includes less than 20 years of time duration, ignoring the microeconomic indicators of tourism revenue and cross-sectional analysis. Future studies can address these limitations which better understanding and practical implications. © 2019, General Jonas Zemaitis Military Academy of Lithuania.