The Impact of Socioeconomic and Travel-Related Aspects on the Allocation of Expenditures by Tourists Traveling to Taiwan

Abstract

This paper analyzes the spending patterns of foreign tourists visiting Taiwan in 2019. Then, the study examines the impact of socioeconomic and travel-related factors on tourists' allocation of expenditures for five essential trip products. By comparing the behaviors of tourists from different nations, the study investigates their priorities for travel expenses such as food, accommodation, transportation, and shopping. The study's OLS regression results show that distance, visit times, travel modes, duration of stays, number of visitors, gender, income, age, and education significantly affect tourists' travel expenditures in Taiwan. The findings reveal that longer-haul tourists spend more on travel products due to their experience. In addition, tourists traveling with companions spend more than those traveling alone, and males spend more on accommodation while females prefer shopping. The study also highlights the positive impact of the number of nights spent on the purchase level of travel goods and services. These insights provide valuable information on the travel-related variables that influence international tourists' spending behavior in Taiwan.