Factors Affecting the Travel Expenditure of Visitors to Macau, China

Abstract

This study examines factors affecting the travel expenditures of visitors to Macau. Employing Tobit analysis, the study investigates the effects of socio-demographic and trip-related characteristics on total expenditure, as well as various travel expenditures across different expenditure functions. Three locations were used for data collection: the border gate with mainland China, the Macau ferry terminal and Macau International Airport. Tourists who were married, had a higher education background and household income and were in a large party tended to spend more on total travel-related expenditures. Distance to Macau turned out to be another important variable affecting tourists' travel expenditure patterns. Compared to tourists from mainland China or Hong Kong, long-haul foreign tourists to Macau spent more on lodging and shopping. Considering the high contribution margin of international long-haul tourists, Macau's tourism industry should entice more of these visitors to generate even higher revenues.