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There are many studies on the roles of income and prices in international tourism demand, but the scope of these studies is usually limited. They usually only look at inbound tourism to a single country or from a single country to another country. This paper examines the roles of these factors on tourism demand from major source markets (different origin countries) in the downstream Mekong region. The result of the panel data analysis from 1995 to 2019 shows that income, own price and price of substitute destinations, as well as the impact of non-economic factors, play a different role on international tourism demand in downstream Mekong countries. The research findings suggest that there are different types of tourism products (luxury goods and essential goods) and different roles between destinations (substitute destination or complementary destination) for tourists from these important markets. Furthermore, the findings form the basis for tourism development policies in the downstream Mekong country.

The Roles of Income and Prices in Determining International Tourism Demand: Evidence from the Mekong Downstream Nations’ Major International Markets