This paper analyzes tourist inflows as a determinant of merchandise exports for the Pacific and finds that inbound tourism to Pacific developing member countries significantly increases merchandise exports from these economies.
Exports are further boosted if international tourists come from countries with which Pacific developing member countries have a shared language, formed an economic partnership through free trade agreements, and have easy visa policies. The paper recommends that inbound tourism to the Pacific is leveraged to diversify economic activities and develop industries, such as garments or souvenir-related manufacturing.