This study examines the determining factors for the tourism demand in Asian countries using panel data. Since the panel data model includes time-series variables common to all cross-sectional units, we apply the least squares estimation twice and decompose the effects of the time-series variables and the unit-specific effects. The empirical results show that characteristics related to the destination countries are significant factors for the tourism demand; they include income levels, trade volumes, exchange rates and price levels. The fast growth of the Chinese economy also significantly contributed to the growth of the tourism demand for Asian countries.
panel data models; time-series variables; tourism demand.