Template-type: ReDIF-Paper 1.0
Author-Name: Chia-Lin Chang
Author-Workplace-Name:
 Department of Applied Economics Department of Finance National Chung Hsing University, Taiwan.
Author-Name:
 Michael McAleer
Author-Workplace-Name:
 Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of 
	Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of 
	Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.
Author-Name: Shu-Han Hsu
Author-Workplace-Name: Department of Applied Economics National Chung Hsing University, Taiwan
.

Title: Risk Spillovers in Returns for Chinese and International Tourists to Taiwan
Abstract: Fluctuations in the numbers of visitors directly affect the rates of return on tourism business activities. Therefore, maintaining a firm grasp of 
	the relationship between the changes in the numbers of Chinese tourists and international travellers visiting Taiwan is conducive to the formulation of 
	an effective and practical tourism strategy. Although the topic of international visitors to Taiwan is important, existing research has discussed the 
	issue of the travel demand between Chinese tourists and international travellers visiting Taiwan. This paper is the first to examine the spillover 
	effects between the rate of change in the numbers of Chinese tourist arrivals and the rate of change in the numbers of international traveller 
	arrivals. Using daily data for Chinese tourists and international travellers visiting Taiwan over the period from 1 January 2014 to 31 October 2016, 
	together with the Diagonal BEKK model, the paper analyses the co-volatility spillover effects between the rate of change in the numbers of 
	international travellers and the rate of change in the numbers of Chinese tourists visiting Taiwan. The empirical results show that there is no 
	dependency relationship between the rate of change in the numbers of Chinese tourists and the rate of change in the numbers of international travellers 
	visiting Taiwan. However, there is a significant negative co-volatility spillover effect between the rate of change in the numbers of Chinese tourists 
	and the rate of change in the numbers of international travellers. The empirical findings suggest that Taiwan should abandon its development strategy 
	of focusing only on a single market, namely China, and to be pro-active in encouraging visits by international travellers to Taiwan for sightseeing 
	purposes, thereby increasing the willingness of international travellers to visit Taiwan. Moreover, with the reduction in the numbers of Chinese tour 
	groups visiting Taiwan, and increases in the numbers of individual travellers, the Taiwan Government should change its previous travel policies of 
	mainly attracting Chinese tour group travellers and actively promoting in-depth tourism among international tourists, by developing tourism that 
	focuses on the special characteristics of different localities. In this way, the government can enhance the quality of Taiwan’s tourism, and also 
	attract travellers with high spending power.
Classification-JEL: Z32, Z33, C22, C32, C58.
Keywords: Risk spillovers, International tourism arrivals, Chinese tourist arrivals, Group tourists, Individual tourists, Medical tourists, Co-volatility 
	effects, Diagonal BEKK model.
Length: 44 pages 
Creation-Date: 2018-03
Number: 2018-11
X-File-Ref: http://america.sim.ucm.es/repec/ucm/ref/doicae1811.txt
File-URL: https://eprints.ucm.es/id/eprint/47099/1/1811.pdf
File-Format: Application/pdf
Handle: RePEc:ucm:doicae:1811