The effect of wealth effect and population aging on tourism expenditure

ABSTRACT

This research mainly explores the significance of tourism expenditure and wealth effect, and the relationship between tourism expenditure and age. Discuss that the increase in the overall wealth effect will increase spending on tourism for aging. This study uses the Quantile Regression model to analyze tourism expenditure behaviour. The empirical results found that in areas with lower average personal income, more agricultural workers may have a higher ratio of business assets allocating average total assets. Still, they are critical areas for tourism expenditure. Regarding the relationship between age and tourism expenditure, quantile expenditure has an inconsistent relationship with age, mid-to-high quantile expenditure has a positive relationship with age. In terms of high quantile expenditure, people over the age of 50 are the groups that spend more.

KEYWORDS:

• Life cycle-permanent income hypothesis
• wealth effect
• population aging
• tourism expenditure
• quantile regression

Disclosure statement

No potential conflict of interest was reported by the author(s).