An analysis of the relationship between ICT infrastructure and international tourism demand in an emerging market

Abstract

Purpose This paper aims to examine the impact of the existing information and communication technology (ICT) infrastructure and the development of the destination’s ICT on the tourism demand of international tourists in an emerging economy, Vietnam. Design/methodology/approach Using time-series data from 1995 to 2019, this study applies vector error correction model to analyse the impact of ICT infrastructure in the short- and long term. Findings The results of analysis show that although ICT infrastructure does not affect the number of international tourists in the short term, it positively contributes to tourism development in the long term. In addition, the results also show that in the short term, consumer prices have a negative impact on tourist arrivals while having a positive effect in the long run. Research limitations/implications This study only considers the impact of ICT infrastructure on the whole without going into each factor reflecting different aspects of the ICT infrastructure. Moreover, this research only stops at the pre-pandemic period, so it has not shown the role of ICT infrastructure in travel and tourism demand during severe pandemic periods. Practical implications The research results are an essential basis to support the Vietnamese Government’s strategy to pursue an accelerated investment policy in ICT infrastructure, especially investment in the tourism and hotel industries. On the other hand, the research results also create more motivation and confidence for managers and operators of destinations in Vietnam to invest in ICT infrastructure and apply ICT in management. Originality/value This study adds to the literature on tourism–ICT linkages in an emerging tourism market directly between ICT infrastructure and international arrivals with a dynamic time series–based approach that considers the dynamics in the tourist demand identification model. In addition, this study used consumer price index to assess the impact of price on tourist demand instead of using the exchange rate or using the relative prices between the origin and destination countries.