Smart Tourism Competitiveness in ASEAN 5

Ong, Xing Qi (2024) Smart Tourism Competitiveness in ASEAN 5. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

This study investigates the influence of smart tourism initiatives on enhancing the competitiveness and attractiveness of the ASEAN-5 countries, namely Malaysia, Singapore, Thailand, the Philippines, and Indonesia. Smart tourism is driven by the integration of advanced Information and Communication Technologies (ICTs), such as the Internet of Things (IoT), big data analytics, and smart mobility solutions. These technologies not only aim to improve visitor experiences but also streamline operations, increase destination sustainability, and elevate tourism sectors to meet global standards. The research employs a panel data methodology to assess the long-term and short-term effects of key determinants, including Gross Domestic Product (GDP), Internet Connectivity (IC), Price Levels (PL), Cost of Business Start-ups (CSB), and Tourism Infrastructure (TI), on Smart Tourism Competitiveness (STC) within the region. The analysis utilizes panel unit root tests, cointegration tests, and the Pooled Mean Group (PMG) estimation technique to examine both the short-run and long-run relationships between the identified variables and Smart Tourism Competitiveness. The unit root tests help determine the stationarity of the variables, while cointegration tests confirm the existence of long-term equilibrium relationships. The PMG estimation technique, which accounts for heterogeneity across countries, is used to model these relationships more effectively. The findings reveal that both digital and physical infrastructure significantly enhance tourism competitiveness over time. Conversely, economic factors such as higher GDP, elevated price levels, and costly start-up environments are shown to negatively affect tourism attractiveness. The study provides valuable recommendations for policymakers and industry stakeholders, suggesting that strategic investments in ICT infrastructure and tourism facilities, combined with policies aimed at lowering barriers for business start-ups, are essential for maintaining competitiveness. Furthermore, the research contributes to the understanding of how smart tourism technologies can drive economic development and enhance the global positioning of ASEAN-5 countries within the tourism industry.