The importance of online payment on Travel and Tourism incomes - A Cross-Country Panel Data Study

Laura Lorente; Aurora Ruiz

doi:10.7336/academicus.2019.20.15

Authors

Laura Lorente University of Nebrija, Madrid, Spain 0000-0003-0072-1070
Aurora Ruiz University of Nebrija, Madrid, Spain 0000-0002-0670-5787

DOI:

https://doi.org/10.7336/academicus.2019.20.15

Abstract

Digital facilities are changing the way companies market to consumers. The use of smartphones and what we called Internet of Things (IoT) are changing the way citizens consume. In this article we perform a cross-country panel data study to analyze how the implementation of business Internet use for buying/selling goods and services, and for interaction with customers influences, for example, the international travel and tourism incomes. Our results show that the use of electronic commerce attracts international tourism and increases tourism revenue, as well as decreases the degree of tourism specialization in the country’s export structure, the relative capability of tourism in generating foreign revenues decrease compare with the other sectors that become more powerful. Besides, we present one of the main political and governmental inhibitor that in this issue the companies must deal with in an international context, the currency exchange control, not yet greatly studied in previous literature.

Keywords:

E-commerce, E-Payment, tourism competitiveness, foreign exchange control

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References

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Anato, M. y González Agra; M. A. (undated). Efectos del control cambiario en la actividad turística. Caso Venezuela.
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Ferreira, K., Goh, J., & Valavi, E. (2017). Intermediation in the supply of agricultural products in developing economies. Harvard Business School Research Paper Series.
Gallagher, K. P., & Tian, Y. (2017). Regulating capital flows in emerging markets: the IMF and the global financial crisis. Review of development finance, 7(2), 95-106.
Gjylapi, D., & Durmishi, V. (2014). Artificial neural networks in forecasting tourists’ flow, an intelligent technique to help the economic development of tourism in Albania. Academicus International Scientific Journal, (10), 202-211.
Google (2017). Consumer Barometer Study 2017: The Year of the Mobile Majority.
GSMA Intelligence. https://www.gsmaintelligence.com/research/2019/02/ the-mobile-economy-2019/731/
GSM Association (2019). The Mobile Economy 2019.
GSM Association (2018). The Mobile Economy: Sub-Saharan Africa 2018.
GSM Association (2017). The Mobile Economy: Sub-Saharan Africa 2017.
Internet World Stats. https://www.internetworldstats.com/stats.htm.
Kapurubandara, M., & Lawson, R. (2006). Barriers to Adopting ICT and e-commerce with SMEs in developing countries: an exploratory study in Sri Lanka. University of Western Sydney, Australia, 82, 2005-2016.
Kim, Y., & Srivastava, J. (2007). Impact of social influence in e-commerce decision making. In Proceedings of the ninth international conference on Electronic commerce (pp. 293-302). ACM.
KPMG (2015). Payment Developments in Africa 2015, Vol. 1. https://home. kpmg.com/za/en/home/insights/2015/07/payment-developments-in-africa2015-volume1.html.
Law, R., Leung, R & Buhalis, D (2009). Hospitality and tourism: a review of publications from.
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Liberato, P., Liberato, D. Abreu, A. Alén-Gonzáles, E. & Rocha, A. (2017). Generation Y: The Competitiveness of the Tourism Sector Base on Digital Technology. In T. Antipova & A. Rocha (Editors), Information Technology Science (pp. 227-240). Moscow, Russi
Moreno‐Enguix, M. D. R., Lorente-Bayona, L. V. & Gras-Gil, E. (2019). Can E-Government Serve as a Tool for Public Authorities to Manage Public Resources More Efficiently? Journal of Global Information Management (JGIM), 27 (2), 122-135.
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Pantano, E., & Priporas, C. V. (2016). The effect of mobile retailing on consumers’ purchasing experiences: A dynamic perspective. Computers in Human Behavior, 61, 548-555.
Pindado, J., & Requejo, I. (2015). Panel data: A methodology for model specification and testing, Wiley encyclopedia of management Hoboken: Wiley.
Robinson, J. (1971). Economic Heresies: Old Fashioned Questions in Economic Theory. Basingstoke: Macmillan.
Ruiz-Rúa, A. y Lorente Bayona, L. (2019). Indicadores macroeconómicos del turismo como un instrumento eficaz para la comparación estratégica a nivel internacional. Macroeconomic indicators of tourism: an effective instrument for international comparison.
Shanker, D. (2008). ICT and tourism challenges and opportunities. Conference on Tourism in India – Challenges Ahead, Indian Institute of Management, Kozhikode, May 15-17.
Siddiqui, K. (2017). Financialization and Economic Policy: The Issue of Capital Control in the Developing Countries. World Review of Political Economy, 8(4), 564-589.
Siddiqui, K. (2016). A Study of Singapore as a Developmental State. Chinese Global Production Networks in ASEAN, edited by Young-Chan Kim, 157–88. London: Springer.
Siddiqui, K. (2010). Globalisation and Neo-liberal Economic Reforms in India: A Critical Review. Globalization in India: New Frontiers and Emerging Challenges, edited by S. K. Pramanick and R. Ganguly. 219–43, New Delhi: Prentice Hall.
Statista. E-Commerce: Statistics and Market Data about E-commerce. https:// www.statista.com/markets/413/e-commerce/
Statista (2018a). Digital travel sales worldwide from 2014 to 2020 (in billion U.S. dollars).https://www.statista.com/statistics/499694/forecast-of-onlinetravel-sales-worldwide/
Statista (2018b). Total revenue of global mobile payment market from 2015 to 2019 (in billion U.S. dollars). https://www.statista.com/statistics/226530/ mobile-payment-transaction-volume-forecast/
Statista (2018c). Mobile Internet - Statistics & Facts https://www.statista.com/ topics/779/mobile-internet/
TrendForce (2016): TrendForce Says Global Mobile Payment Market to Reach US$620 Billion in 2016 with Apple and Samsung Staking Large Claims in the Ecosystem. https://press.trendforce.com/press/20160201-2298.html.
Wang, S., Zheng, S., Xu, L., Li, D., & Meng, H. (2008). A literature review of electronic marketplace research: Themes, theories and an integrative framework. Information Systems Frontiers, 10(5), 555-571.
World Bank Open Data. https://data.worldbank.org/
World Economic Forum. https://www.weforum.org/
World Economic Forum (2017). The Travel & Tourism Competitiveness Report 2017.
World Tourism Organization. http://www2.unwto.org/
World Tourism Organization (2001). Tourism Market Trends 2001 - World Overview & Tourism Topics.
Xiang, Z., & Gretzel, U. (2010). Role of social media in online travel information search. Tourism management, 31(2), 179-188.
development strategies, and new trends. Shanxi Sci. Technol., 3, 71-94.
Zdnet. https://www.zdnet.com/article/mobile-in-sub-saharan-africa-canworlds-fastest-growing-mobile-region-keep-it-up/

References

Akehurst, G. (2009). User generated content: the use of blogs for tourism organisations and tourism consumers. Service Business, 3(1), 51–61.

Anato, M. y González Agra; M. A. (undated). Efectos del control cambiario en la actividad turística. Caso Venezuela.

Bankmycell. https://www.bankmycell.com/blog/how-many-phones-are-in-theworld.

Crotty, J., and Epstein, G. (1999). A Defence of Capital Control in the Light of Asian Financial Crisis. Journal of Economic 33 (2): 427–33.

Dymski, G. (2010). Why the Subprime Crisis Is Different: A Minskyian Approach. Cambridge Journal of Economics 34 (2): 239–55.

eMarketer. https://www.emarketer.com/

European Commission. European Tourism Indicators System for sustainable destination management. http://ec.europa.eu/growth/sectors/tourism/offer/ sustainable/indicators_en.

Eurostat (2016), Statistics on ICT use in tourism. https://ec.europa.eu/eurostat/ statistics-explained/index.php/Statistics_on_ICT_use_in_tourism.

Ferreira, K., Goh, J., & Valavi, E. (2017). Intermediation in the supply of agricultural products in developing economies. Harvard Business School Research Paper Series.

Gallagher, K. P., & Tian, Y. (2017). Regulating capital flows in emerging markets: the IMF and the global financial crisis. Review of development finance, 7(2), 95-106.

Gjylapi, D., & Durmishi, V. (2014). Artificial neural networks in forecasting tourists’ flow, an intelligent technique to help the economic development of tourism in Albania. Academicus International Scientific Journal, (10), 202-211.

Google (2017). Consumer Barometer Study 2017: The Year of the Mobile Majority.

GSMA Intelligence. https://www.gsmaintelligence.com/research/2019/02/ the-mobile-economy-2019/731/

GSM Association (2019). The Mobile Economy 2019.

GSM Association (2018). The Mobile Economy: Sub-Saharan Africa 2018.

GSM Association (2017). The Mobile Economy: Sub-Saharan Africa 2017.

Internet World Stats. https://www.internetworldstats.com/stats.htm.

Kapurubandara, M., & Lawson, R. (2006). Barriers to Adopting ICT and e-commerce with SMEs in developing countries: an exploratory study in Sri Lanka. University of Western Sydney, Australia, 82, 2005-2016.

Kim, Y., & Srivastava, J. (2007). Impact of social influence in e-commerce decision making. In Proceedings of the ninth international conference on Electronic commerce (pp. 293-302). ACM.

KPMG (2015). Payment Developments in Africa 2015, Vol. 1. https://home. kpmg.com/za/en/home/insights/2015/07/payment-developments-in-africa2015-volume1.html.

Law, R., Leung, R & Buhalis, D (2009). Hospitality and tourism: a review of publications from.

to 2007. Journal of Travel and Tourism Marketing, 26, 599- 623.

Liberato, P., Liberato, D. Abreu, A. Alén-Gonzáles, E. & Rocha, A. (2017). Generation Y: The Competitiveness of the Tourism Sector Base on Digital Technology. In T. Antipova & A. Rocha (Editors), Information Technology Science (pp. 227-240). Moscow, Russi

Moreno‐Enguix, M. D. R., Lorente-Bayona, L. V. & Gras-Gil, E. (2019). Can E-Government Serve as a Tool for Public Authorities to Manage Public Resources More Efficiently? Journal of Global Information Management (JGIM), 27 (2), 122-135.

Our World in Data. https://ourworldindata.org/how-many-internet-usersdoes-each-country-have.

Pantano, E., & Priporas, C. V. (2016). The effect of mobile retailing on consumers’ purchasing experiences: A dynamic perspective. Computers in Human Behavior, 61, 548-555.

Pindado, J., & Requejo, I. (2015). Panel data: A methodology for model specification and testing, Wiley encyclopedia of management Hoboken: Wiley.

Robinson, J. (1971). Economic Heresies: Old Fashioned Questions in Economic Theory. Basingstoke: Macmillan.

Ruiz-Rúa, A. y Lorente Bayona, L. (2019). Indicadores macroeconómicos del turismo como un instrumento eficaz para la comparación estratégica a nivel internacional. Macroeconomic indicators of tourism: an effective instrument for international comparison.

Shanker, D. (2008). ICT and tourism challenges and opportunities. Conference on Tourism in India – Challenges Ahead, Indian Institute of Management, Kozhikode, May 15-17.

Siddiqui, K. (2017). Financialization and Economic Policy: The Issue of Capital Control in the Developing Countries. World Review of Political Economy, 8(4), 564-589.

Siddiqui, K. (2016). A Study of Singapore as a Developmental State. Chinese Global Production Networks in ASEAN, edited by Young-Chan Kim, 157–88. London: Springer.

Siddiqui, K. (2010). Globalisation and Neo-liberal Economic Reforms in India: A Critical Review. Globalization in India: New Frontiers and Emerging Challenges, edited by S. K. Pramanick and R. Ganguly. 219–43, New Delhi: Prentice Hall.

Statista. E-Commerce: Statistics and Market Data about E-commerce. https:// www.statista.com/markets/413/e-commerce/

Statista (2018a). Digital travel sales worldwide from 2014 to 2020 (in billion U.S. dollars).https://www.statista.com/statistics/499694/forecast-of-onlinetravel-sales-worldwide/

Statista (2018b). Total revenue of global mobile payment market from 2015 to 2019 (in billion U.S. dollars). https://www.statista.com/statistics/226530/ mobile-payment-transaction-volume-forecast/

Statista (2018c). Mobile Internet - Statistics & Facts https://www.statista.com/ topics/779/mobile-internet/

TrendForce (2016): TrendForce Says Global Mobile Payment Market to Reach US$620 Billion in 2016 with Apple and Samsung Staking Large Claims in the Ecosystem. https://press.trendforce.com/press/20160201-2298.html.

Wang, S., Zheng, S., Xu, L., Li, D., & Meng, H. (2008). A literature review of electronic marketplace research: Themes, theories and an integrative framework. Information Systems Frontiers, 10(5), 555-571.

World Bank Open Data. https://data.worldbank.org/

World Economic Forum. https://www.weforum.org/

World Economic Forum (2017). The Travel & Tourism Competitiveness Report 2017.

World Tourism Organization. http://www2.unwto.org/

World Tourism Organization (2001). Tourism Market Trends 2001 - World Overview & Tourism Topics.

Xiang, Z., & Gretzel, U. (2010). Role of social media in online travel information search. Tourism management, 31(2), 179-188.

development strategies, and new trends. Shanxi Sci. Technol., 3, 71-94.

Zdnet. https://www.zdnet.com/article/mobile-in-sub-saharan-africa-canworlds-fastest-growing-mobile-region-keep-it-up/