The Interaction Effect of Foreign Human Resources and Trade Openness on Inbound Tourism

This study analyzed the individual effects of foreign human resources and trade openness on inbound tourism, reflecting the tourism environment in which the importance of revitalizing inbound tourism is increasing. Furthermore, the effect of the interaction between foreign human resources and trade openness on inbound tourism was examined. For research purposes, 246 observations from 143 countries were collected and analyzed empirically from 2010 to 2015 using two multiple regression analyses. Inbound tourism expenditure was used as the dependent variable for the multiple regression analysis. Additionally, the ratio of foreign human resources to the total population and the ratio of international trade to GDP were used as independent variables. And national income, foreign direct investment, and economic growth, which can directly or indirectly affect inbound tourism, were used as control variables. As a result of this study, foreign human resources and trade openness did not show a significant individual effect on inbound tourism. However, the interaction between foreign human resources and trade openness has a significant positive effect on inbound tourism. Therefore, based on the results of this study, tourism policymakers should strengthen inter-industry linkages so that foreign human resources can actively participate in international trade in manufacturing and services to increase external openness and improve the country’s tourism image in order to maximize the economic effect of inbound tourism.