Forecasting key indicators of China's inbound and outbound tourism: optimistic-pessimistic method

Purpose Tourism industry is a highly complex system surrounded by many uncertainties because of its innumerable connections with other supporting systems. Considering tourism, a grey system, the current study proposes optimistic-pessimistic method (OPM). This technique can aid in improving forecast accuracy of four tourism-related indicators, inbound tourism to China, outbound tourism from China, revenues collected through inbound tourism and expenses incurred on outbound tourism. Design/methodology/approach The study integrates OPM into EGM and then using the secondary data collected from the World Bank database, predicts the four tourism-related indicators. The mean absolute percentage error steered the performance of the models. Findings One of the main contributions of the study lies in its overall evaluation of one of the major travel and tourism countries of the world in light of four crucial indicators. The study highlights, four tourism-related indicators' recent information, contains more valuable information about the future. Originality/value OPM represents a novel application of concept of whitenization of interval grey number in grey forecasting theory.

Automated summary

This study proposes the optimistic-pessimistic method (OPM) to improve forecast accuracy of tourism-related indicators. By integrating OPM into EGM and using secondary data from the World Bank, the study predicts inbound and outbound tourism to/from China, as well as revenues and expenses. The evaluation of major travel and tourism countries based on these indicators presents valuable insights for the future of the tourism industry.