Determinants of backpackers' expenditure

• Examines determinants of backpackers' expenditure
• Nationality, cultural attractions and relaxation influence their expenditure.
• Spending varies across components of the tourism product.

ABSTRACTThe backpacker segment has been widely promoted for its positive impact on local economies, with their expenditure often used as a major reason. Nonetheless, research on backpackers' spending behaviours could best be described as superficial and scant. Employing econometric analysis, this study investigates the determinants of backpackers' aggregate expenditure, as well as their spending on various goods including accommodation, food and beverages and attractions using data from 650 respondents. Nationality and trip motivation (culture and relaxation) were established as the significant determinants of backpackers' average aggregate expenditure per day. Significant variations were also observed in expenditure on the various components in relation to several variables including sex, level of education, length of stay, social contact and learning. The study concludes that diverse factors impact backpackers' spending behaviour depending on the nature of the good, thus confirming the heterogeneity of backpacking and high complexity of the tourism good.