Abstract
The study aims to quantify inbound tourists and assess the influence of the Korean Wave and financial indicators. These are the justifications for our actions. The Korean Wave, GDP, CPI, and currency rate influenced incoming tourism. Tourism demand from the US, China, Japan, and Hong Kong is expected to increase. Korea. The Korean Wave is quantifiable in terms of Hallyu-related exports. Each of the four nations imports this secondhand material. Gross domestic product (GDP) is a unit of economic production used to quantify a country’s economic output. With regards to the four distinct nations. The CPI and the Korean exchange rate, on the other hand, indicate that the United States is an entirely different country. Criminal data on the Korean Wave, tourist demand, and economic indicators have been collected from 1997. The year 2014 has been chosen for investigation. Numerous studies have been conducted to evaluate the panel analysis paradigm. Finally, the model with the most excellent fit was a random-effects model.
Consequently, the Korean Wave, GDP, and the exchange rate all have clinically important effects on the economy. There is considerable interest in travel. Therefore, it’s unsurprising that the Korean Wave is currently one of the most popular fashion trends. Considerations for luring foreign visitors to Korea in four nations. Additionally, the data indicates that as a nation’s monetary richness improves, so do international visitor arrivals. The country’s economy benefits from favorable exchange rates. The CPI, on the other hand, does not. The amount of visitors that visit a location appears to be significant statistically. This demonstrates the point. On the other side, travelers are not overly concerned with the expense of the place while arranging a vacation.
Introduction
Chinese media coined the phrase “Korean Wave” in 1999. It’s a word that refers to the growing popularity of Korean pop culture among Chinese adolescents. Additionally, it is referred to be the phenomenon of Korean pop culture achieving international prominence. Recent leaders of the Korean Wave have been visual and performing arts, such as K-pop and theater. The Korean Wave has a broad diversity of financial and ethnic consequences. According to music industry data, the annual growth rate of K-average POP was a stunning 41.7 percent in 2014. Since 2010, total exports of content have climbed at an average yearly rate of 13.4 percent, reaching the US $ 5273.32 million in 2014 (Bae, Eun-song, et al., pp. 22). Another aspect influencing outsiders’ perceptions of Korea is the content of the Korean Wave, which has a direct impact on the selling of Korean goods in other countries. Following the Korean Wave, a phenomenon dubbed the Korean Wave influence has expanded throughout the economy. Hallyu-themed fashion and style goods are gaining appeal in Asia’s Hallyu-heavy regions, China and Southeast Asia. Korean celebrities are used as marketing tools by the cosmetics business to convey an image and a reputation for being on the cutting edge of fashion.
Foreign visitors are increasing due to the Korean Wave’s effect on the country’s attractiveness. Since 1998, when the Korean Wave began, many overseas visitors arriving in Korea have nearly doubled. Asia’s significance has increased, as seen by the growth of Asian tourists from 71.3 percent in 1998 to 83.5 percent in 2014. The United States, Hong Kong, Japan, and China account for more than half of all exports. Tourists from other countries account for over 70% of all international visitors to Korea. In 1998, Chinese tourists accounted for barely 4.96 percent of all visits. By 2014, the percentage had increased to 6.12 million, representing 43.14 percent of all visits. Despite the tragic earthquake that struck Japan in March 2011, the country drew 8.8 percent more tourists than the previous year. This constitutes 33.6 percent of all passengers arriving in Korea, with the bulk of these tourists coming from China (Bae, Eun-song, et al., pp. 22). As a result, the number of international visitors to Korea has grown. Assessing and projecting tourist demand is the most essential critical and essential job when considering the tourism industry’s current and forthcoming.
As a result, much research has been conducted on the need for tourists. The two primary factors of tourist demand are income and pricing. Most studies estimated income and prices using the exchange rate, GDP, global oil charges, and the consumer price index (CPI). On the other side, research indicates that the Korean Wave is responsible for the growth in overseas visitors. As a result of the Korean Wave, international travelers visiting Korea are expanding. On the other hand, there is little indication that the Korean Wave impacts visitor demand. This is partly due to the difficulties in describing the Korean Wave’s ripple effect and range. The export volume of Korean Wave material was used in this study to gauge visitor demand and quantify the phenomena. Additionally, China, Japan, the United States, and Hong Kong were chosen to estimate visitor demand. These four nations account for more than 70% of all international visitors to Korea. Not only do expenses and salaries factor into tourist demand, but so does the Korean Wave. We wish to conduct a panel analysis study since it simultaneously presents time series dynamic characteristics and cross-sectional variables. The influence of the Korean Wave on incoming travel to Korea is investigated in this research. The following are the study’s research questions: (1) What are the possible consequences of this decision? What influence will Hallyu have on Korean travel? Is GDP a factor in determining incoming Korean tourist demand? Is the Consumer Price Index (CPI) a factor in determining the need for international visitors in Korea? (4) Is the foreign exchange rate a role in the arrival of Korean tourists?
Literature review
Forecasting the Volume of Visitors
Demand forecasting is used to forecast future demand using historical data. National and commercial leaders exploit forecasts of tourist demand to guide strategic planning and decision-making (Tuner & Witt, 2001). As a result, precise demand projections reduce management risks and losses while increasing profitability, enabling management to make more informed decisions and plans. It is critical to construct a robust forecasting model to improve forecasting accuracy. Numerous studies have been done to forecast and analyze tourist demand precisely. Quantitative approaches such as causal model projections and time series forecasting are frequently used to indicate demand in the tourist sector. The time series prediction approach uses historical data to forecast the future by analyzing patterns and trends. A time-series prediction model is constructed using a long-term equilibrium relationship amid the time sequence variables. Forecasting tourist demand is a typical strategy that relies on past data (Bae, Eun-song, et al., pp. 22). However, this approach to determining the factors affecting visitor demand has several limitations. However, because the causal model prediction approach can only estimate static connections at certain times, it is restricted in its capacity to study the link between tourist demand and selection criteria. In recent years, panel data analysis has been widely employed to predict tourist demand to solve this problem.
Hallelujah! (Wave of the Korean Peninsula) “Korean popular culture” is a “widespread phenomenon” overseas. The Korean Wave is a complex social and monetary phenomenon that has been variously portrayed. The effects of content exports, other industry experts, and tourism are explored, along with the expected ripple impact on economic growth. As a result of the Korean Wave’s effect, ‘Hallyu tourism’ refers to international visitors to Korea who visit Hallyu tourist attractions. This heightened interest resulted in the phenomenon known as Korean Wave tourism, in which Japanese tourists came to Korea and visited the locations where Korean dramas were filmed. Hallyu tourism may be classified in many ways based on visitor behavior. If you’ve heard of or are familiar with the Korean Wave, you’ve heard of “narrow” Korean wave tourism, which includes visiting filming locations, meeting other fans, and attending K-Pop events (Bae, Eun-song, et al., pp. 22). International visitors visit Korea to experience the Korean Wave, even if they do not engage in typical tourism activities associated with the phenomena. In a similar spirit, American and Australian films feature appealing tourist destinations. Another way to put it is that the film has developed into a popular tourist attraction.
Finally, the film’s spectator becomes a tourist in the nation where it was shot due to their interest in its subject. There has long been an understanding that “movie tourism,” as frequently referred to, contributes to tourism’s appeal. Tourists are lured to film tourism, sometimes referred to as film-induced tourism, by the narratives it tells about the locations portrayed in films, plays, music, and other types of entertainment. This summarizes the commercialization of film and TV sets and recording sites. Movie tourism is a popular form of modern culture tourism in today’s globe and a well-known tourist attraction. British television shows or films inspired a fifth of all visitors to the United Kingdom.
In contrast, half of all visitors to Scotland were inspired by Scottish television plays or movies. After the 2001 release of ‘The Lord of the Rings,’ international visitors to New Zealand increased by 5.6 percent annually, with the picture affecting 9 percent of tourists. While it is commonly acknowledged that movie tourism exists, tourist authorities have lately begun marketing attempts to capitalize on it, like creating movies or movie maps to entice travelers. In comparison to other businesses, however, the tourist industry’s efforts to demonstrate the impact of such films on visitor numbers or revenue were insignificant. The Korean wave tour was influenced by popular culture.
The Korean Wave may be defined in terms of the content of Korean popular culture and the rivalry for that content (Bae, Eun-song, et al., pp. 22). As a result, the amount of Korean pop culture content exported may be viewed as a function of the exporting country’s competitiveness in Korean pop culture. Most extant Hallyu-related research relies on surveys to ascertain tourists’ intention to return to Korea or their perception of the Korean Wave. Additionally, an in-depth examination of the Korean Wave’s influence on travel demand is missing. Given the growth of the Korean Wave throughout Asia, it is critical to construct an accurate model to forecast how this would affect Korean tourist demand.
Hallyu’s Business and Culture
“The Hallyu economy” develops when Korean items become popular in foreign markets and quickly sell out. ‘the Hallyu economy’s hallmarks include aggressive advertising, the most exemplary reputation, localization efforts, competitive pricing, and superior value and strategy. Publicizing top-tier Hallyu singers has been highly advantageous for Korean firms with a modest level of worldwide acknowledgment (Eun, pg. 1561). Increased exports of Korean culture or cultural commodities are directly proportional to Hallyu’s economic impact. Exports are essential to the pop culture industry’s success. Indirect consequences of Hallyu’s popularity on the economy may include greater interest in and sales of Korean products and services, improved visibility for Korean commercial activities, and easier access to worldwide marketplaces for Korean manufacturers and facility providers.
Methodology
Flexible Data Collection and Operation Definition
This research aims to ascertain the level of demand for international visitors visiting the country. Apart from the variables affecting visitor demand, there are several more reasons to visit Korea. The data is derived from the Panel data collected over 18 years. The demand is directed at specific countries. These nations provide more individuals with the forecasting model than any other country. Korea attracts foreign tourists. These four nations account for over 70% of the total. In 2014, the number of international visitors visiting Korea increased. This study makes use of a variety of factors. Panel data were collected over 18 years.
Hypotheses
Increased tourist demand due to Hallyu Monetary and ethnic ripple impacts of the Korean Wave is extending into new industries and becoming more widespread as a consequence of its development. As the Korean Wave grows, the number of tourists increases, making tourism one of the most visible ripple effects. It began in the 1990s with the popularity of Beethoven’s “Winter Sonata,” which drew a large number of Japanese tourists. The Korean Wave started to grow as tourism in the attractive site increased, resulting in an inflow of international tourists (Bae, Eun-song, et al., pp. 22). While the Korean Wave began in theater, it has now evolved to encompass other entertainment and media types, extending its global power and appeal. Consequently, it was assumed that as the Korean Wave’s impact rose, so would visitor demand.
The relationship between Hallyu and the desire for tourism
To examine Hallyu’s effect on tourist demand (H1). The hypothesis test results indicate that the Hallyu substantially influences tourist demand at the 1% level of significance. The findings of this study corroborate prior Hallyu studies. Oh (2005) analyzed the Korean Wave as a factor in determining why people migrated to the nation. Consequently, it was determined that the Korean Wave, which encompasses Korean television plays, music, films, and performances, significantly impacted people’s decision to visit Korea (Bae, Eun-song, et al., pp. 22). Tourists came to Korea primarily for events associated with the Korean Wave, like Korean play, Hallyu celebrity tours, sight-seeing, concerts, and fan clubs. As demonstrated in an earlier study, Hallyu content significantly impacts outside visitors visiting Korea.
Results
Only descriptive statistics
This exploration examined the influence of the Korean Wave and financial factors on visitor demand using panel data. Between 1997 and 2014, data on tourists, incoming Hallyu, gross local merchandise, consumer price index (CPI), and foreign exchange rate (FX) vs. the Korean won were used. Seventy-two data points were collected for each variable from a panel of four countries: the US, Japan; Hong Kong; and China. The following statistics give descriptive information about the submitted data. With 96,000 to 6.12 million tourists, descriptive data indicates that the average is 1.2 million. The average value of film content overseas sales, a Hallyu indicator, was $ 4.5 million, ranging from $ 1.66 million to $ 174.5 million (Bae, Eun-song, et al., pp. 22). GDP ranges from $ 1.57 trillion to $ 18 trillion. The Consumer Price Index (CPI) value ranges from 0.9291 to 1.5621. It now has an average exchange rate of 625.9186 won, ranging from 114.74 won to 1413.14 won.
Conclusion
The impacts of the Korean Wave and monetary displays on-demand for arriving visitors to Korea are examined in this research. They evaluated the influence of the Korean Wave on GDP, inflation, and the currency rate on incoming tourist demand from the United States, China, and Japan. These four nations’ visitors are over 70% of the total visitor demand in Korea. By accumulating data from 1997 to 2014, it was feasible to assess the influence of the Korean Wave on crime patterns and fiscal displays. After running several experiments, it was determined that a random effect model was the best fit for panel analysis. The study includes a study on the impact of the Korean Wave and financial determinants on visitor demand.
Works Cited
Bae, Eun-song, et al. “The effect of Hallyu on tourism in Korea.” Journal of Open Innovation: Technology, Market, and Complexity 3.4 (2017): 22.
Eun, Seok-Chan. “Brilliant Hallyu and plastic surgery.” Journal of Korean medical science 28.11 (2013): 1561-1562.
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