Abstract:
ICT is one of the factors encouraging countries’ tourism demand. The
objective of this study is to test the long-run relationship between ICT and tourism
demand in Sri Lanka over the period of 1990 -2018. In this study, exploratory data
analysis technique, unit root test, bivariate cointegration technique employed as
analytical tools. The test result of exploratory data analysis shows that there is a positive
relationship between ICT and tourism demand in Sri Lanka. The unit root test results put
forward that the variables used in this study are stationary at their 1st difference. Further,
the bivariate cointegration test result points out that ICT in Sri Lanka has a long-run
relationship with tourism demand. The estimated coefficients of ICT in the short and
long-run highlights a beneficial relationship with tourism demand in Sri Lanka. The
estimated coefficient of error correction term informs that 0.9% of error will be adjusted
every year. The estimated value of Durbin-Watson test statistic indicates that the
estimated model is robust. Further, the test result of Granger causality test confirms oneway Granger causal relationship from ICT to tourism demand.
