Expenditure decisions of international tourists to Taiwan: application of the Heckman two-stage approach

Figures & data

Table 1. Descriptive statistics.

Variables	Description	Coding values	Mean	S.D.^a	%^b
Dependent variable
The first-stage probit model	Whether a tourist spends money on tourism activities or products. Dummy variables present “Yes” or “No”	Yes = 1; otherwise = 0
The second-stage OLS regression model	A natural logarithm of tourism expenditures
Exp.Accommodation	Spending on hotels	USD^c/day	60.52	154.71	–
Exp.Food	Spending on meals and beverages	USD/day	37.86	49.32	–
Exp.Transportation	Spending on transport-related charges	USD/day	18.94	30.33	–
Exp.Shopping	Spending on purchasing souvenirs, clothes, cosmetics, jewelry, and others	USD/day	41.67	114.01	–
Exp.Other expenses	Spending on entertainment (cinema, nightlife, sports) and other expenses	USD/day	12.36	67.29	–
Independent variables
Satisfaction1	Overall satisfaction level	Very poor = 1; otherwise = 0	–	–	2.16
Satisfaction2		Poor = 1; otherwise = 0	–	–	0.62
Satisfaction3		Fair = 1; otherwise = 0	–	–	5.49
Satisfaction4		Good = 1; otherwise = 0	–	–	37.99
Satisfaction5		Excellent = 1; otherwise = 0	–	–	53.74
Distance	Distance from home to a travel destination	Short distance =1; otherwise = 0	–	–	66.16
Visit Times	Number of visits to Taiwan	First time = 1, repeat time = 0	–	–	45.94
Stay days	Stay durations	Days	14.60	21.10	–
Plan days	Number of days to make a trip decision	Days	54.98	62.20	–
Gender	Gender	Male = 1, Female = 0	–	–	49.67
Generation X	Age levels	50s =1, otherwise = 0	–	–	18.8
Generation Y		30s and 40s = 1, otherwise = 0	–	–	49.71
Generation Z		10s and 20s = 1, otherwise = 0	–	–	2.23
Education1	Education levels	Under or high school = 1, otherwise = 0	–	–	16.65
Education2		College or university = 1, otherwise = 0	–	–	65.58
Education3		Graduate school = 1, otherwise = 0	–	–	17.75
Income1	Income levels	Under $14,999 = 1, otherwise = 0	–	–	14.03
Income2		$15,000–$29,999 = 1, otherwise = 0	–	–	45.08
Income3		$30,000–$39,999 = 1, otherwise = 0	–	–	12.58
Income4		$40,000–69,999 = 1, otherwise = 0	–	–	13.92
Income5		Over 70,000 = 1, otherwise = 0	–	–	14.39
COVID-19	Before COVID-19 from 2016-2019, and during COVID-19 from 2020-2021	PreCOVID-19 = 0, during COVID-19 = 1	–	–	21.67

Generation X refers to those born between 1965 and 1980. Generation Y refers to those born between 1981 and 1996. Generation Z refers to those born between 1997 and 2009.

^aS.D. is the standard deviation.

^bFrequency is determined based on values assigned with 1.

^cUSD (or $) is the currency abbreviation for the United States dollar.

Table 2. Results of the first-stage probit model estimations.

Variable	Outcome D(Exp.Accommodation)		Outcome D(Exp.Food)		Outcome D(Exp.Transport)		Outcome D(Exp.Shopping)		Outcome D(Exp.Other expenses)
	Coeff	t-stat	Coeff	t-stat	Coeff	t-stat	Coeff	t-stat	Coeff	t-stat
Satisfaction2	0.155	(1.34)	0.0962	(0.59)	0.922**	(2.05)	0.229*	(1.94)	0.554**	(2.63)
Satisfaction3	0.323***	(5.01)	0.402***	(4.23)	0.861***	(13.13)	0.353***	(5.48)	0.422***	(6.63)
Satisfaction4	0.367***	(6.66)	0.403***	(5.33)	0.852***	(15.88)	0.444***	(8.15)	0.322***	(5.82)
Satisfaction5	0.322***	(5.89)	0.504***	(6.66)	0.793***	(14.92)	0.419***	(7.75)	0.0677**	(2.24)
Distance	0.115***	(5.88)	0.131***	(3.92)	0.0360*	(1.66)	0.324***	(16.65)	0.016	(0.88)
Visit Times	0.394***	(21.79)	−0.086***	(−2.67)	0.207***	(10.16)	0.148***	(8.02)	0.0513***	(3.24)
Stay days	−0.440***	(−43.72)	−0.319***	(−18.37)	−0.568***	(−49.77)	−0.199***	(−20.07)	0.427***	(38.31)
Plan days	0.0390***	(5.16)	0.0257*	(1.95)	0.0552***	(6.64)	0.177***	(23.53)	0.124***	(18.09)
Gender	0.0645***	(3.63)	−0.0649**	(−2.07)	0.0393**	(1.99)	−0.350***	(−19.16)	−0.0408**	(−2.54)
Generation X	0.0415**	(2.78)	−0.0957**	(−2.37)	0.0461*	(1.74)	0.0925***	(4.04)	−0.0385*	(−1.84)
Generation Y	−0.121***	(−6.61)	−0.0349	(−1.05)	−0.0311	(−1.49)	−0.127***	(−6.87)	0.0458***	(2.76)
Generation Z	−0.145**	(−2.42)	−0.191**	(−2.01)	−0.215***	(−3.46)	−0.114*	(−1.74)	0.0316*	(1.59)
Education2	0.126***	(5.31)	0.0473	(1.13)	0.0860***	(3.24)	−0.0873***	(−3.4)	−0.00201	(−0.09)
Education3	0.157***	(5.14)	0.136**	(2.57)	0.103***	(3.07)	0.129***	(4.12)	0.0610**	(2.15)
Income2	0.0522**	(1.96)	−0.0889*	(−1.73)	−0.0789**	(−2.56)	−0.110***	(−3.71)	−0.0923***	(−3.97)
Income3	0.0884***	(2.59)	0.0244	(0.35)	−0.119***	(−3.03)	−0.124***	(−3.37)	−0.0693**	(−2.35)
Income4	0.102***	(3.04)	−0.136**	(−2.19)	−0.0964**	(−2.52)	0.237***	(6.73)	−0.014	(−0.48)
Income5	0.301***	(8.58)	−0.0891	(−1.42)	0.0969**	(2.45)	0.223***	(6.25)	0.0223	(0.7)
Constant	1.102***	(15.1)	2.152***	(18.64)	1.199***	(15.94)	0.842***	(11.49)	−1.434***	(−19.97)
Observations	30,945		30,945		30,945		30,945		30,945
LR χ^2	6,939		672		4,659		6,109		5,875
Pseudo R^2	0.200		0.081		0.177		0.186		0.142

Data processed, 2023.

* p < .1, ** p < .05, *** p < .01.

Table 3. Results of the second-stage truncated OLS model estimations.

Variable	Outcome ln(Exp.Accommodation)		Outcome ln(Exp.Food)		Outcome ln(Exp.Transport)		Outcome ln(Exp.Shopping)		Outcome ln(Exp.Other expenses)
	Coeff	t-stat	Coeff	t-stat	Coeff	t-stat	Coeff	t-stat	Coeff	t-stat
Satisfaction2	0.252***	(6.49)	0.00505	(0.13)	0.819***	(15.07)	0.0842	(1.42)	0.989***	(4.00)
Satisfaction3	0.0847	(1.49)	0.106*	(1.88)	0.159***	(2.7)	0.0597	(0.67)	1.831***	(6.22)
Satisfaction4	0.0672***	(3.5)	0.00322	(0.17)	0.0610***	(2.96)	−0.0222	(−0.73)	1.755***	(5.52)
Satisfaction5	0.0515***	(5.21)	0.0482***	(5.03)	0.0488***	(4.91)	0.0542***	(3.81)	1.337***	(4.36)
Distance	0.0213*	(1.96)	0.0768***	(7.22)	−0.0149	(−1.37)	0.127***	(5.73)	0.117	(1.52)
Visit Times	−0.126***	(−6.03)	0.0347***	(3.91)	−0.0364***	(−3.07)	−0.0341**	(−2.25)	0.364***	(4.99)
Stay days	−0.191***	(−13.84)	−0.246***	(−15.76)	0.134***	(5.53)	−0.345***	(−21.74)	0.704***	(6.32)
Gender	0.0328***	(3.26)	0.0181**	(2.06)	0.0159*	(1.66)	−0.170***	(−8.39)	−0.504***	(−7.27)
Generation X	0.0471***	(3.85)	0.0418***	(3.63)	0.0571***	(4.61)	0.0929***	(4.96)	−0.470***	(−5.2)
Generation Y	−0.0772***	(−7.78)	−0.0340***	(−3.86)	−0.0300***	(−3.05)	0.00338	(0.22)	−0.373***	(−5.19)
Generation Z	−0.0392	(−1.32)	−0.132***	(−4.45)	0.0329	(0.98)	−0.0599	(−1.33)	−0.469**	(−1.98)
Education2	−0.0577***	(−3.65)	−0.118***	(−10.15)	−0.166***	(−12.55)	−0.129***	(−6.98)	−0.350***	(−3.79)
Education3	−0.0202	(−1.14)	−0.157***	(−9.94)	−0.142***	(−8.22)	−0.139***	(−5.55)	0.162	(1.36)
Income2	0.0638***	(4.94)	0.0744***	(5.7)	0.0176	(1.23)	−0.0825***	(−4.12)	−0.313***	(−2.86)
Income3	0.148***	(8.34)	0.0845***	(5.31)	−0.00938	(−0.51)	−0.0483*	(−1.87)	−0.405***	(−2.97)
Income4	0.244***	(13.78)	0.125***	(7.43)	0.000206*	(2.01)	0.0736***	(2.67)	0.244*	(1.87)
Income5	0.412***	(20.78)	0.218***	(12.76)	0.0113**	(2.61)	0.0845***	(2.76)	0.414***	(3.1)
COVID − 19	−0.0224**	(−2.88)	0.0316***	(3.5)	−0.0942***	(−9.44)	0.129***	(3.22)	−0.834***	(−3.89)
Constant	4.520***	(94.19)	3.846***	(140.38)	3.115***	(104.06)	4.197***	(87.84)	−5.219***	(−5.75)
IMR (λ)	−0.786***	(−4.68)	−1.474***	(−4.83)	−1.920***	(−17.35)	−0.459***	(−3.74)	4.675***	(7.8)
Selected (N)	23,221		30,021		26,234		24,017		18,782
R^2	0.136		0.168		0.110		0.124		0.085
σ	0.641		0.705		0.741		1.027		4.490

Data processed, 2023.

* p < .1, ** p < .05, *** p < .01.

Table

A. The total number of trips made to Taiwan in the previous three years, except the current one. B. The amount of time the visitor had to organize this vacation before departing for Taiwan C. The number of days to stay in Taiwan throughout this trip D. The modes of transportation (including personal trips without travel agencies and group or individual tours planned by a travel company) E. How much did this trip to Taiwan cost in total? (Money type, excluding payments in advance) F. Travel spending, including lodging costs G. Food costs, including any out-of-home meals H. Costs associated with local transport (high-speed rail, railway, MRT, aircraft, coach, bus, taxi, ferry, shared bicycles, rental cars, and others) I. Spending for leisure (movies, clubs, playing golf, and others) J. Purchases related to shopping (such as those for apparel, jewelry, trinkets, skin care products, and specialty items from the area). K. Additional expenditures L. Details on the individual (gender, nationality, age, annual earnings, and others) L1. Nationality L2. The visitor’s home country or region L3. Age ranges: (12) 12 − 19; (20) 20 − 29; (34) 30 − 39; (55) 50 − 59; (6) 60 − 65; and (7) 66 and older L4. Yearly earnings (in US dollars) (1) Under 9,999, (2) 10,000–14,999, (3) 15,000–29,999, (4) 30,000–39,999, (5) 40,000–69,999, (6) 70,000–99,999, and (7) Over L5. Gender: (1) Male; (2) Female L6. Education includes the following: (1) Elementary, junior, senior, or vocational schools; (2) College or university; (3) Graduate school (master’s or doctoral); (4) Other

Monetary value = US dollar. Only inbound visitors to Taiwan were asked about their expenditure questions.