Market Structure and Its Relationship to Tourism Revenue: Industrial Organization Perspectives from ASEAN Member Countries
Keywords:
Industrial organization, Tourism market structureAbstract
This article examines the ASEAN tourism market structure and investigates the connection between industry structure and tourism revenue using the structureconduct-performance paradigm. Using the 2012-2019 intranational panel dataset collected from 10 ASEAN member countries, the results reveal that the ASEAN tourism market structure is concentrated during the sample period but tends to be competitive in the future, with an average Herfindahl-Hirschman Index of 1,725.242. The empirical evidence from the panel regression analysis theoretically confirms the positive relationship between the market structure variable and tourism revenue. In particular, an increase in a market share ratio causes a rise in tourism revenue approximately 590.6 million USD. A policy recommendation for formulating tourism policies and strategies derived from this analysis is presented.
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