An econometric analysis of the determinants impacting on businesses in the tourism industry

Abstract

This article estimated the determinants of tourist arrivals in South Africa for the period 1999 to 2007. A tourism model was estimated and the results revealed several factors to be main determinants of tourist arrivals in South Africa. From a business perspective, these factors should seriously be considered to provide tailor-made services to potential tourists. The results also indicated that Angola, Australia, Austria, Belgium, Germany and Namibia have unexploited tourism potential. The article recommended that an improvement of infrastructure, maintaining a competitive exchange rate and price stability are important factors for attracting tourists to South Africa. Focus can also be placed on facilitating regional integration within the African continent to encourage tourists to visit South Africa.