There is no need to emphasize how important tourism industry is to Small Island Developing States (SIDS). Tourism is a key sector in most SIDS, contributing to GDP, employment, and the socio-economic development through direct and indirect channels. The study aims to explore how broadband (both fixed and mobile) affect tourism demand in Fiji and Seychelles.
To answer the research question, tourism demand models are used to find out whether broadband penetration impacts tourism demand in Fiji and Seychelles based on panel data acquired from ITU, World Bank, UNWTO, local governments, etc. Results showed that fixed broadband has a positive influence on tourism demand in both Fiji and Seychelles, and fixed broadband seems to have a stronger impact on tourism demand than mobile broadband.
Due to isolation, connection between island nations and the rest of the world seems especially crucial. With the development of broadband in SIDS, people in tourism businesses are able to do more online promotions and online transactions. Better broadband infrastructure may also strengthen the appeal and competitiveness of SIDS to tourists who need to be connected while relaxing on the beach.
The relationship between broadband and tourism demand has not been examined much. And overall there is a lack of research on SIDS. This study is an attempt to bridge the gap and hopefully shed some light on related policy issues for SIDS governments.