Impact of Political Corruption on International Tourism Demand: A Panel Data Analysis of 22 Asian Countries

Abstract

Background: Tourism serves as a critical driver of international economic activity, particularly for developing nations that rely on the sector for employment generation and foreign exchange earnings. However, tourism performance varies significantly across jurisdictions, suggesting that institutional factors, such as political corruption, may play a decisive role in shaping industry outcomes. Objective: This study investigates the impact of political corruption on tourism demand across Asia. Specifically, it seeks to determine whether, and to what extent, corruption levels significantly deter international tourist arrivals in these countries. Methodology: Adopting a quantitative research design, the study utilises panel data analysis covering 22 Asian countries from 2002 to 2020. Simple linear regression models were employed to examine the relationship between political corruption indices and international tourism demand. Results: The findings reveal a statistically significant negative relationship between corruption and tourism demand. The regression analysis demonstrates that higher levels of perceived corruption are associated with a marked decrease in tourist inflows. Although the model exhibits relatively low explanatory power, the consistency and significance of the negative effect indicate that corruption is a critical institutional determinant of tourism performance. Conclusion: The study concludes that political corruption is a major deterrent to the growth of the tourism industry. Reducing institutional uncertainties and curbing corrupt practices are essential prerequisites for countries aiming to enhance their competitiveness and attract international visitors. Unique Contribution: This research contributes to the intersection of governance and tourism literature by providing long-term empirical evidence from the Asian context. It highlights the importance of institutional quality as a primary factor in the patterns of international tourism flows. Key Recommendation: Governments and policymakers in the Asian region should prioritise anti-corruption reforms as a strategic tool for tourism development. Strengthening institutional transparency and reducing political risks will create a more favourable environment for international travellers and foster sustainable economic growth.