Open AccessThe Effect of Tourism Expansion on Firm Performance: Evidence from Japan
Author(s) -
Bor-Yuh Lee
Publication year - 2021
Publication title -
european journal of business and management research
Language(s) - English
Resource type - Journals
ISSN - 2507-1076
DOI - 10.24018/ejbmr.2021.6.5.863
Subject(s) - tourism , promotion (chess) , panel data , business , government (linguistics) , tourism geography , marketing , empirical research , economic geography , ecotourism , economics , political science , politics , econometrics , linguistics , philosophy , epistemology , law
This article examines whether an increase in tourism has a direct impact on tourism and tourism-related companies in Japan. Tourism expansion is theoretically assumed to have a direct influence on tourism companies, and previous studies have found the connection between tourism expansion and tourism companies. This chapter considers ROA and ROE as company performance indicators and the changes in the number of foreign tourists as the measurement of tourism expansion. The effects of tourism expansion on corporate performance are examined by a random effect in panel regression analysis. However, the results are not supported by current theories. The research shows that tourism expansion does not have a significant impact on the Japanese tourism industry. The empirical findings offer valuable information on the future of the tourism-based Country Promotion Basic Act for Japanese government policymakers, and experts in related industries.