Electricity consumption and international tourism: the case of Singapore

International inbound tourists consume electricity of a destination either directly or indirectly. Despite the recognition of potential effect of international tourism on electricity consumption, not many papers have investigated the existence of such relationship empirically. This research note intends to fill the existing literature gap by determining such relationship with time-varying volatility models using the data of Singapore. A GARCH-M(1,1) model is selected. This model indicates that industrial production and total international inbound tourists have positive effects on electricity consumption. The model also suggests that the variability of electricity consumption has a positive effect on electricity consumption.