Global Journal of Business Management

Global Journal of Business Management ISSN 2736-1721 Vol. 14 (3), pp. 001-010, March, 2020. © International Scholars Journals

Full Length Research Paper

An econometric analysis of the determinants impacting on businesses in the tourism industry

Joel Hinaunye Eita, André C. Jordaan and Yolanda Jordaan*

¹School of Business and Economics Monash University P/B X60 Roodepoort, 1725, South Africa.

²Department of Economics University of Pretoria, Pretoria, 0002, South Africa.

³Department of Marketing and Communication Management, University of Pretoria, Pretoria, 0002, South Africa.

Accepted 21 August, 2019

Abstract

This article estimated the determinants of tourist arrivals in South Africa for the period 1999 to 2007. A tourism model was estimated and the results revealed several factors to be main determinants of tourist arrivals in South Africa. From a business perspective, these factors should seriously be considered to provide tailor-made services to potential tourists. The results also indicated that Angola, Australia, Austria, Belgium, Germany and Namibia have unexploited tourism potential. The article recommended that an improvement of infrastructure, maintaining a competitive exchange rate and price stability are important factors for attracting tourists to South Africa. Focus can also be placed on facilitating regional integration within the African continent to encourage tourists to visit South Africa.

Key words: Tourism, demand, panel, South Africa, Africa, tourist.