Modeling Travel Expenditures for Taiwanese Tourism

Abstract

Abstract This study develops a travel expenditure model using sociodemographic and travel characteristics to identify the important determinants affecting travel expenditure for Taiwanese travelers visiting the United States. Stepwise regression is used to accurately interpret independent variables. LInear Structural RELations (LISREL) is used for analyzing the Structural Equation Model (SEM) that is fit to a sample (n = 1,097) of Taiwanese travelers using the variables from the stepwise regression as exogenous variables and expenditure and length of stay as endogenous variables. The overall model is found to be robust and individual relationships are found significant as well. The results of this study provide a first step in studying travel expenditure using sociodemographic and travel characteristics for the Taiwan travel market. Implications and recommendations for the travel and tourism industry are provided and suggestions for future research are made.