CULTURAL DISTANCE AND TOURISM DEMAND: SIMILARITY-ATTRACTION THEORY AND DISTANCE DECAY EFFECT

The distance between an origin and a destination plays a crucial role in travel demand. Based on the similarity-attraction theory and the distance decay effect, this study explores the differences in national culture at different levels and their influence on Hong Kong’s tourism demand. Using the Composite Cultural Distance Index formula, four different cohorts were generated among the key source markets of Hong Kong. Kruskal Walli’s test revealed cultural distance as a significant, influential factor but not the only factor having a fully decaying effect on travel demand, experiences, and satisfaction. Our findings showed that distance affects the demand for tourism and the behavior of tourists. However, the effect decays as the distance upsurges. The Similarity-Attraction Theory explains the travel activities and characteristics among travelers with similar and dissimilar cultures relative to the destination. Tourism firms and regulatory bodies should segment their markets based on cultural distance and use targeted marketing strategies with significant cultural integration.