Abstract:
This paper aims to model international tourist arrivals to Maldives. Using panel data of
annual tourist arrivals from 35 countries, various models were estimated for the time
period 2001-2016. Four different econometric models which include, the pooled Ordinary
Least Squares (OLS), the “within” fixed effect panel regression model, the Arellano-Bond
Generalised Method of Moments (GMM) estimation technique, and the Blundell-Bond
system GMM technique, were used to identify the main determinants of inbound tourism
in Maldives. The results indicate the high fidelity of tourists visiting Maldives, as well as,
the significance of income of the tourist generating country in determining the number of
arrivals. In addition, results also illustrate, the importance of excluding mutually exclusive
variables for exchange rates and prices in the empirical model
