[eng] Asia is one of the most attractive destinations for tourists due to its abundance of natural and
cultural resources. Especially, the tourism industry has developed rapidly in some countries, such
as Thailand and Indonesia. However, there are significant diversities in economics, cultures and
politics varying across different Asian sub-regions which have substantial impacts on tourism
demand based on previous studies. However, there are only a few country-specific studies
considering the institutional quality and instability as key elements for the tourism development in
Asia. Therefore, this research mainly focuses on analysing the effect of institutional quality and
instability on the tourism demand to Asia and comparing it within different Asian sub-regions and
with other global regions by using PPML techniques based on the gravity models from costumer
theory and including around 200 destination and origin countries in the sample. The results
demonstrate that quality of the institutions and instability have complex influences on tourism
demand to Asia differing across sub-indicators, sub-regions and origins of the tourists, while their
impacts to Asian tourism demand are also different from those to other global regions. This study
indicates that Asian countries should place different emphases on improving institutional quality
and instability based on their actual conditions when it comes to developing tourism and achieving
higher growth.