Resumen de Determinants of Domestic Travel Expenditure in South Korea
This study examines factors affecting domestic Korean tourist expenditure per person. Independent variables include family size, Per Capita Gross National Product (GNP), number of cars, number of working hours, number of years of education, previous year's domestic travel expenditure, and exchange rate. A 21-year historical data were used in the study. Two estimation methods, principal components regression and ridge regression, were employed in this study to eliminate the problems of multicollinearity caused by Ordinary Least Squares (OLS) method. The empirical results show that number of working hours, family size, and number of years of education turned out to be important factors affecting domestic travel expenditure.
