Determinants Affecting the Flow of international Travelers in the ASEAN Region: Does Institutional Quality Matter?
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This paper investigated the institutional determinants affecting the flow of international travelers to the ASEAN region. The primary aim was to assess the influence of institutions by using proxy variables; such as regulatory quality, the rule of law, control of corruption, and government effectiveness. Secondary data from the World Bank, Worldwide Governance Indicators (WGI), the World Economic Forum, and the ASEAN Secretariat from 2011 to 2019 were analyzed. Employing panel data regression analysis as the methodological approach, the finding revealed that institutional factors are significant in attracting international tourists, precisely in the context of regulatory quality and the rule of law. This paper recommended reinforcing institutional frameworks, including enhancements in regulatory quality, legal practices, adherence to the rule of law, and good governance, deemed essential for most ASEAN countries. For example, upgrading the regulatory framework involves establishing specific mechanisms for transparency and accountability across tourism institutions. This covers conducting regular audits, public reporting, and comprehensive capacity-building programs for public officials and employees within these institutions. These measures can vitally mitigate the risk of misconduct and uphold the tourism image and reputation, fostering trust and confidence among foreign tourists and enhancing the attractiveness of the ASEAN destinations as a whole.
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