The Impact of particulate matters 2.5 on tourist arrival in Chiang Mai

Abstract

This study is to investigates the impacts of particulate matter 2.5 on the number of international tourists arriving in Chiang Mai. Which Particulate matter 2.5 is air pollution that have negatively effects on human health and the economy. This study focused on top ten international tourist arrivals to Chiang Mai as dependent variable with particulate matters 2.5 and other economic variables which can determine on tourism demand which is Gross Domestic Product, transportation cost, relative prices and real effective exchange rate can affect to tourist arrivals in Chiang Mai as independent variable. Then we employ the panel kink regression to examine the nonlinear relationship between variables. The data set used in this study is quarterly data from January 2012 to December 2018 The empirical results show that international tourism will get a different effect to decrease when the level of particulate matter 2.5 is equal to or more than 36.835 micrograms per cubic meter of air. Similarly, when transport cost reaches 10,169.192 Thai baht which exclude the tax and fee can decreased for international tourists. From these results can conclude that an increase in particulate matter 2.5 and transport cost leads to a negative effect on international tourists arriving in Chiang Mai. This study provides useful information to policymakers in developing tourism policies that are appropriate for the situation and policy to help local companies cope with the situation such as can decrease forest fire from agriculturist by set strong legal punishment for those who violate the law and increases carbon tax to decrease air pollution for better environment.