The Impact of Climate Variables on Seasonal Variation in Hong Kong Inbound Tourism Demand

Abstract

In this study, we quantify the link between climate variables, such as temperature, rainfall, humidity, number of tropical cyclones, and number of thunderstorms, and seasonal variation in the Hong Kong inbound tourism demand from mainland China, Taiwan, South Korea, and Japan using the average Euclidean distance (AED) statistics and tourism demand modeling approach. Seasonal variation is measured as the fluctuation in the number of tourists from one season to another. Based on the smallest AED value, results of this study showed that climate variables play a dominant role in shaping seasonal variation relative to season and country. The fluctuation of tourist numbers from one season to another is determined not only by climate variables (e.g., the temperature of Hong Kong vs. the temperature in the country of origin of the tourist) but also by economic factors, including price and income. The variation in the impact of relative temperature depends on the country of origin.