earticle

영어

This study attempts to investigate the main features of tourism industry and tourism demand in Busan and to draw useful policy implications. The analysis from the regional input-output table shows that the tourism industry in Busan plays a major role in the regional economy. However, it is more sensitive to economic conditions than the tourism industry of other regions. Therefore, industrial policies tries to make some industries a buffer industry for tourism industry, to alleviate the direct effect of business cycle fluctuations on the local economy. On the other hand, the estimation result of panel data displays that the variables such as income level, relative price, tourist facilitates and social infrastructures are statistically significant in the short run, in explaining the tourism demand of foreigners. However, in the long run, it turns out that influx of new tourists due to good reputation and social infrastructure affecting tourism environment are the most important factors. Thus, it is crucial to increase the investment in infrastructure and to improve the image of Busan to increase the number of foreign tourists in the long run. Finally, since this study uses the regional input-output table in 2013, it has a limitation in reflecting the more recent relation between the industries. Also, due to the lack of data in the tourism sector, more elaborate analysis related to the tourism demand of domestic residences for Busan was not made. Thus, for the future research, more systematic data construction and analytic skills are needed.