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Probit Model Analysis

This study discusses on the identification of the tourists’ destination satisfaction attributes and the influence of these factors on their revisit intention to Nepal. This study used the survey methodology for data collection and involved the distribution of self-administered questionnaires to a sample of tourists. An exploratory factor analysis, with principal component analysis and varimax rotation, was used to extract significant factors related to satisfaction with destination features.

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0% found this document useful (0 votes)
86 views14 pages

Probit Model Analysis

This study discusses on the identification of the tourists’ destination satisfaction attributes and the influence of these factors on their revisit intention to Nepal. This study used the survey methodology for data collection and involved the distribution of self-administered questionnaires to a sample of tourists. An exploratory factor analysis, with principal component analysis and varimax rotation, was used to extract significant factors related to satisfaction with destination features.

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Open Access Library Journal

2021, Volume 8, e7210


ISSN Online: 2333-9721
ISSN Print: 2333-9705

Probit Model Analysis of Tourists’ Revisit


Intention to Nepal

Noora Shrestha

Department of Mathematics and Statistics, P.K. Campus, Tribhuvan University, Kathmandu, Nepal

How to cite this paper: Shrestha, N. Abstract


(2021) Probit Model Analysis of Tourists’
Revisit Intention to Nepal. Open Access This study discusses on the identification of the tourists’ destination satisfac-
Library Journal, 8: e7210. tion attributes and the influence of these factors on their revisit intention to
https://doi.org/10.4236/oalib.1107210
Nepal. This study used the survey methodology for data collection and in-
Received: February 3, 2021
volved the distribution of self-administered questionnaires to a sample of
Accepted: February 16, 2021 tourists. An exploratory factor analysis, with principal component analysis
Published: February 19, 2021 and varimax rotation, was used to extract significant factors related to satis-
faction with destination features. Using maximum likelihood method, a pro-
Copyright © 2021 by author(s) and Open
Access Library Inc.
bit model was analyzed to test the impact of tourists’ satisfaction with their
This work is licensed under the Creative revisit intention. The probit model predicts 93.5% of the cases correctly. The
Commons Attribution International tourists were considered to be budget travellers as 92% of them spent less
License (CC BY 4.0).
than $40 per person per day during their visit. The result also shows that sa-
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tisfaction with destination characteristics such as historic and religious places,
Open Access
experiencing different lifestyle, trekking & mountaineering, adventure sports,
and tourist guide service, are realized to significantly influence the probability
of revisit intention of budget travellers to Nepal.

Subject Areas
Consumer Behavior, Tourism Economy, Applied Statistics

Keywords
Probit Model, Exploratory Factor Analysis, Varimax Rotation, Budget
Traveller, Revisit Intention, Nepal

1. Introduction
Tourism is considered as the major sector that contributes the national economy
of a developing country by creating employment opportunities, generating rev-
enue, and earning foreign currency (Terry, 2006 [1]; Kevin & Irena, 2007 [2]).

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N. Shrestha

Nepal is taken as the naturally beautiful destination for mountaineers, people for
white water rafting, researchers of the animal & bird, rock climbers and adven-
turous people. The tourism in Nepal is largely focused on courageous trekking,
mountaineering and it does attract a reasonable number of tourists including
budget travellers (MoCTCA, 2019 [3]; MoCTCA, 2020 [4]).
Budget travellers or backpackers are independent young travellers who stay
longer than usual length of travel, prefer a low budget for travel and accommo-
dation, and desire to meet both other tourists and locals (Kevin & Irena, 2007)
[2]. Budget travellers are to be found in every village and city of a country
throughout the world (Richards & Wilson, 2004) [5]. They are more distinct
than other tourists, having large range of interest, motivations, cultural diversity,
age, class, and nationality. The foreign currency brought in by budget travellers
often exceeds than the other mainstream tourists and they can approach and
contribute to the marginalized social groups (Maoz, 2007) [6]. According to
tourism statistics of Nepal, in January 2020, there was a record of 39.2% interna-
tional tourists arrival from Asian countries, followed by 26.3% from SAARC
countries, 13.6% from Europe, 9.2% from America and remaining from other
countries (NTB, 2020) [7]. In Nepal, average expenditures per day of budget
travellers were $20 to $30 while the average per day spending of other interna-
tional tourist was $54 in 2017; it was dropped to $44 in 2018. The average length
of stay of overseas tourists in Nepal was 12 to 14 days depending on the season
(MoCTCA, 2020) [4].
In January 2020, the tourist arrival was observed satisfactory resulting 79,686.
These tourists were from the top six countries: India (21.7%), China (15.9%),
USA (8.1%), South Korea (6.3%), Thailand (5.7%), and Myanmar (4.7%). The
revenue generated from tourism in Nepal was $703,179 thousand in 2018
(MoCTCA, 2020) [4]. It was perceived that the tourist influx is high during two
points of the year February to April and September to November, making them
the ultimate seasons for tourist arrival in Nepal. The purpose for travelling to
Nepal was for holiday, trekking, and mountaineering followed by pilgrimage.
The percentage of male tourists was higher than the female in last few years
(MoCTCA, 2020) [4].
Revisit intention has been identified as an extension of satisfaction and a sig-
nificant research topic in tourism studies (Lehto, O’Leary & Morrison, 2004 [8];
Julaimi & Salim, 2016 [9]). Some literatures reveal that satisfied tourists agree
and have the tendency of revisit to the same destination to stay longer, contri-
bute more intensively, and explore new locations (Bake & Crompton, 2000 [10];
Khan, Chelliah & Ahmed, 2017 [11]). The revisit intention is also considered as
willingness to recommend the destination to others by spreading positive word
of mouth (Sonmez & Graefe, 1998 [12]; Pritchard & Howard, 1997 [13]). There
are numerous analyses verifying the positive impact of tourist satisfaction and
perceived attractiveness on repeat tourism (Juaneda, 1996 [14]; Bigne, Sanchez &
Andreu, 2009 [15]; Um, Chon, & Ro, 2006 [16]). The prominence of revisit in-

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N. Shrestha

tention of the traveller for the sustainability of the tourism business has been
well proven by previous literature (Kozak, 2001 [17]; Loi, So, Lo & Fong, 2017
[18]). According to Seetnah et al. 2020 [19], the satisfaction of the tourist with
hotel accommodation quality, cost of living, development level, tourism attrac-
tion, and quality of information were important determinants of both tourist sa-
tisfaction and revisit intention. They conducted study with non-probability sam-
pling method and data was analyzed using probit model.
In Nepal, the tourism promotional activities to attract tourists are largely fo-
cused on limited destination and on the features of tourism such as mountai-
neering, trekking, and jungle safari. There are some tourist destinations where
regular plan, promotion, and attractive packages to the international tourists are
rare. Repeat visitation is very imperative for the tourism industry of Nepal be-
cause these destinations are mainly relying on the loyal repeat visitors. The loyal
visitors will increase their stay and share their experiences to other potential tra-
vellers to visit the destination (Pradhanang, 2000 [20]; Shrestha, 2000 [21];
Hampton, 2010 [22]).
Despite the phenomenal growth seen in January 2020, Nepal’s tourism sector
is far from reaching its peak potential. Although ministry of culture, tourism,
and civil aviation produces tourism statistics every year, there is no precise data
on repeat tourism and budget travellers such as demographic profile, trend and
purpose of visit nevertheless Nepal being a popular budget traveller’s destina-
tion. It is very important to understand that budget travellers immediately are
fun lovers, independent travellers, and contributes to raise the income of local
people. Budget travellers for trekking and adventure rend to consume local
products, and stay in homestay or family owned teahouse, love local food; use
locally owned transport, which in turn brings profit within the local community
rather than the international hotel groups (Hampton, 2010 [22]; Scheyvens &
Russell, 2012 [23]). Hence, the present study intends to provide answers to the
research questions; 1) What are the socio-demographic attributes of the budget
traveller? 2) What are the significant factors influencing budget traveller’s desti-
nation satisfaction characteristics on their revisit intention?
Budget travellers when compared to the mainstream tourists are more likely
to travel low-income countries like Nepal, spend more time in travelling, con-
tribute for cultural sustainability and be ready to endure hardships and inconve-
niences (Pearce, 2008) [24]. The budget travellers’ tourism is most important
and has a positive socio-economic impact for local communities they visit but
Nepalese tourism stakeholders less acknowledge them. By reason of covid-19
pandemic, an international tourism may not resume anytime soon and hence it
is necessary to rethink on the tourism strategy by focusing more on the signifi-
cant factors without compromising the quality.
The aim of the present study is twofold; first, to identify the factors related to
destination features contributing to satisfaction and second, to assess the influ-
ence of these factors on revisit intention of the budget traveller.

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N. Shrestha

2. Materials and Method


2.1. Data Collection and Sampling Method
A questionnaire survey method along with a cross-sectional research design was
considered most suitable since it allowed measuring the revisit intention with
destination satisfaction through the collection of data from budget travellers vi-
siting Gandaki province of Nepal. In 2018, Gandaki province welcomed 400,000
international tourists generating income and significant employment. This
province is well known for its natural beauty, organic resources, diverse geogra-
phy, and social cultural heritages. Pokhara, the most popular tourist destination,
is the capital city of this province. There are some districts of this province such
as Lamjung, Manang, and Mustang, which are popular tourist destinations for
sightseeing, pilgrimage site, and adventure trekking tours and sports. This prov-
ince has identified tourism as one of the major sources for revenue generation
(MoITFE, 2019) [25].
The items in the questionnaire, relating to destination satisfaction and revisit
intention were identified from previous literature (Maoz, 2007 [6]; Lehto et al.,
2004 [8]; Julaimi & Salim, 2016 [9]). The socio-demographic characteristics, and
the attributes people and heritage, natural environment and beauty, adventure,
and tourist information were considered to be associated to destination satisfac-
tion, and were treated as statistically significant explanatory variables in the
model (Khan et al., 2017 [11]; Seetanah et al., 2020 [19]; Bam & Kunwar, 2020
[26]). A five points Likert-type scale was espoused; least score “1” indicating
strongly disagree and “5” is representing strongly agree for the factors in the
questionnaire including destination satisfaction and outcome variable revisit in-
tention measured on a dichotomous scale. Few open-ended questions were added
that allow respondents to answer in open text format and share their knowledge,
feelings and understanding.
A non-probability sampling method was preferred to select participants since
the questionnaire was designed for English speaking tourists and the sampling
frame for the tourist visiting the study area was not accessible. Although the lack
of an obtainable sampling frame precludes the possibility of a probability sam-
pling, there are still a number of choices existing in the non-probability samples.
While non-probability samples do not convey the same weight as probability
samples, they do still deliver the prospect to draw from a representative selection
of the population (Kimberly, 2005 [27]; Lavrakas, 2008 [28]).
According to Nepal tourism statistics 2019, total international tourists tra-
velled to Nepal were 1,197,191 from January to December 2019. Out of total ar-
rival of tourists, 29% were Asian-SAARC, 29% were Asian others, 20% were Eu-
ropean, 9% were Americans, 9% were Oceania, and 4% were others (MoCTCA,
2020) [4]. Proper attention was taken to acquire a 200 sample of tourists that will
show the important socio-demographic characteristics of the population such as
age, gender, purpose of a visit, budget, length of stay, and region. Sample was
taken as a proportion of region wise distribution of arrivals. The inclusion crite-

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N. Shrestha

ria of the sample were 1) age more than 18 years, 2) visiting in Gandaki province
for over a week, and 3) accommodated in homestay or budget lodges or family
owned teahouses. Questionnaires were distributed during November to Decem-
ber 2019 to the respondent tourists who had been travelling in the same prov-
ince during survey period.

2.2. Method of Data Analysis


Descriptive statistics were used as a preliminary analysis procedure to get an un-
derstanding of intrinsic substantial socio-demographic attributes of the budget
traveller. To identify the factors related to destination descriptions contributing
to budget travellers’ satisfaction, exploratory factor analysis was used and binary
probit model was analyzed to assess the influence of the extracted factors on re-
visit intention as a binary response variable. Binary probit model is suitable to
provide detailed analysis of the intention to repeat tourism of the respondent
(Shrestha, 2021 [29]; Uzunoz & Akcay, 2012 [30]). All the statistical analysis was
performed using STATA 14.
The factor extraction method is based on principal component analysis and
the varimax orthogonal factor rotation method with Kaiser normalization. Kais-
er-Meyer-Olkin test is used to measure the sampling adequacy. To check the
multicollinearity among the variables, a determinant score is computed. Cron-
bach’s alpha is calculated to examine the internal consistency or reliability of the
data set (Cattel, 1973 [31]; Kaiser, 1958 [32]).
A probit model is a statistical probability model in which the variable of in-
terest, Y, can take dichotomous values for example, revisit intention (RI), yes or
no. There are some studies that display the application of probit model for the
binary outcome variable (Uzunoz & Akcay, 2012 [30]; Alabi et al., 2014 [33]).
The purpose of the probit model is to estimate the probability that an observa-
tion with particular characteristics will fall into one of the two binary outcomes
(Liao, 1994 [34]; Albert & Chib, 1993 [35]).
In this study, the binary probit model was used to test the influence of budget
travellers’ satisfaction with various destination characteristics on their revisit in-
tention, measured on a dichotomous scale. The probit analysis provides statisti-
cally significant findings of which destination satisfaction factors influence or
not the probability of revisit of budget travellers. In binary probit model, revisit
intention was taken as “1” for yes, while “0” for no.
For the probit model, the probability (Pi) of selecting any alternative is given
by

P (Y =
1X)= (
Φ ∑ k =1 β k X k =
K
∫−∞ )
2π exp
Σβ k X k
( ) ( )  −t 2 
2π exp 
 2 
 dt

where Φ is the standard normal cumulative distribution function. The equation


for the probability of non-event is given by

P (Y = 0 X ) = 1 − Φ (∑ K
k =1
βk X k )
DOI: 10.4236/oalib.1107210 5 Open Access Library Journal
N. Shrestha

The relationship between a particular variable and the predicted probability is


interpreted by marginal effect. To interpret the probit model, partial derivatives
of probability with respect to an independent variable, Xk, is examined. The
marginal effect can be derived as
∂Prob ( y =
1)
∂xk
(
= Φ ∑ k =1 β k X k β k
K
)
where, Φ indicates the standard normal probability density function. The probit
model can be written as
Y = β 0 + β1 X 1 + β 2 X 2 +  + β k X k + ε k

where, Y = binary dependent variable, X = explanatory variable, β = parameter


to be estimated, ε = error term (Aldrich & Nelson, 1984 [36]; Greene, 1993 [37]).

3. Results and Discussion


3.1. Socio-Demographic Information
On the basis of survey results, of the total 200 sample, the male participants
(63%) were more than the female (37%) participants which is consistent with the
Nepal tourism statistics; the percentage of male tourists was higher than the fe-
male in last few years (MoCTCA, 2020) [4].
Table 1 displays the minimum and maximum ages of the participants that
were 18 and 56 years respectively. The mean age of participants in the age group
from 18 to 56 years was 35.7 years and standard deviation = 10.27. The majority
(80%) of the tourists were from the age group 16 - 45 years. This finding is
agreeing with the Nepal tourism statistics that shows most of tourists in 2019
were between the ages 16 to 60 years (MoCTCA, 2020) [4]. In addition, the res-
pondents were from various parts of the world. The respondents were selected
from different regions based on the Nepal tourism statistics 2019. The region
wise distribution of tourists was Asian-SAARC (29.5%), Asian-others (29%),
European (20%), Americans (9%), Oceania (8.5%), and other (4%).
There are various purposes of visiting Gandaki province. 32% of the tourists
visited with the purpose of holiday and pleasure. Similarly, 30.5% of the tourist
came for adventure including trekking and mountaineering, 11% for volunteer-
ing and academic, 16.5% for entertainment, video, and photography, and 10%
for pilgrimage purpose. The average length of stay of respondents in this study
was found to be 12.72 days with standard deviation 4.56, which is consistent
with the average length of stay 12.4 days in 2018 (MoCTCA, 2020) [4]. 4% of
tourists visited Gandaki province for a minimum five-day stays, and the maxi-
mum length of stay of 7.5% of tourists was 20 days.
In this study, the travel expenditure of tourists on their stay in Gandaki prov-
ince was ranged from $20 and more per person per day. The survey result illu-
strates that out of all respondents, 45.5% of tourists spent lower amount $20 to
$30, 46.5% spent mid range expenditure $30 to $40, 4.5% spent high range $40
to $50, and 3.5% of them spent very high range $50 or more. This expenditure of

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N. Shrestha

tourists was lower than the average expenditure of the tourist revealed by tour-
ism statistics of Nepal (MoCTCA, 2020) [4]. According to tourism statistics of
Nepal, the average spending per tourist per day was $54 in 2017 and $44 in 2018
for all types of tourists. The average expenditure per person per day of the tour-
ist was found to be $40 in a previous study conducted in the same destination
(Bam & Kunwar, 2020) [26]. Hence, the participants of this study were assumed
to be budget traveller as 92% of them spent less than $40 per person per day
during their visit.

Table 1. Socio-demographic information.

Variables Categories N %

Male 126 63
Gender
Female 74 37

16 - 30 62 31

Age (years) 31 - 45 98 49

46 - 60 40 20

Asian-SAARC 59 29.5

Asian-others 58 29

European 40 20
Region wise
Distribution
Americans 18 9

Oceania 17 8.5

Other 8 4

Holiday 64 32

Adventure 61 30.5

Purpose of Visit Volunteering & academic 22 11

Entertainment, video & photography 33 16.5

Pilgrimage 20 10

5-9 60 30

Length of Stay (days) 10 - 14 68 34

15 - 20 72 36

$20 - $30 91 45.4

$30 - $40 93 46.5


Expenditure per person
per day ($)
$40 - $50 9 4.5

$50 and more 7 3.5

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N. Shrestha

3.2. Factor Analysis


Table 2 displays results obtained from exploratory factor analysis using varimax
rotation. It presents the value of Kaiser-Meyer-Olkin (KMO) test that is equal to
0.778 > 0.6, and used in research to determine the sampling adequacy of data
that are to be used for factor analysis. The Bartlett’s test is highly significant (p <
0.001), and demonstrates there is certain relationship between the variables. The
value for the determinant of the correlation matrix of explanatory variables is a
measure of the severity of multicollinearity. The existence of multicollinearity in
the model increases the standard errors of each coefficient, and lead to increas-
ing complexity in the outcome of the statistical analysis (Shrestha, 2020) [38].
The determinant score of the correlation matrix is 0.027 > 0.0001 indicating ab-
sence of multicollinearity among the variables.

Table 2. Rotated component matrix of satisfaction with destination attributes.

Component
Variables
1 2 3 4

Family owned teahouse/homestay 0.781

Local food and service 0.762

Historic & religious places 0.678

Behavior & cordiality of local people 0.593

Jungle safari and sight seeing 0.768

Relaxing environment 0.767

Personal safety & security 0.689

Experiencing different lifestyle 0.547

Trekking and mountaineering 0.814

Culture and festivals 0.808

Adventure sports 0.664

Communication facilities 0.788

Tourist guide service 0.740

Kaiser-Meyer-Olkin Measure of Sampling Adequacy 0.778

Determinant Score 0.027

Initial Eigenvalue (>1) 4.02 1.67 1.24 1.03

% of variance explained (61.27%) 17.48 17.37 15.83 10.60

Cronbach’s Alpha (Reliability) 0.739 0.735 0.711 0.45

Average Variance Extracted (AVE) 0.50 0.50 0.59 0.58

Composite Reliability (CR) 0.80 0.79 0.81 0.74

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N. Shrestha

The factor extraction method is based on principal component analysis and


varimax orthogonal rotation with Kaiser normalization. Before extraction, there
were 13 linear components within the data set. After extraction and orthogonal
rotation, there are 4 linear components within the data set for which eigenvalue
is greater than 1. All the variables having factor loadings greater than 0.4 are
taken, thus, confirming convergent validity of the measurement scales (Ho, 2006
[39]; Hair et al., 1998 [40]).
The result from extraction method shows that 61.27% common variance
shared by 13 variables can be accounted by 4 factors. The first component la-
beled as “people and heritage” described 17.48% variance with eigenvalue 4.02.
This component includes four destination satisfaction items such as family
owned teahouses/homestay, local food & service, historic & religious places, and
behavior & cordiality of local people. The second component marked as “natural
environment & beauty” illuminated 17.37% variance with eigenvalue 1.67. This
component incorporates four satisfaction items such as jungle safari & sight
seeing, relaxing environment, personal safety, & security, and experiencing dif-
ferent lifestyle.
The third component named as “adventure” portrayed 15.83% variance with
eigenvalue 1.24. This component comprises three destination satisfaction items
such as trekking and mountaineering, culture & festivals, and adventure sports
like water sports, bungee, and paragliding. The fourth component entitled as
“tourist information” depicted 10.60% variance with eigenvalue 1.03. This com-
ponent embraces two items such as communication facilities and tourist guide
service related to destination satisfaction of budget travellers.
Cronbach’s alpha is calculated to examine the internal consistency or reliabil-
ity of the data set. Cronbach’s alpha values for first, second and third compo-
nents are 0.739, 0.735, and 0.711 respectively, which are more than 0.7 (Fornell
& Larcker, 1981) [41]. The coefficient of reliability for the fourth component
“tourist information” is poor (0.45 < 0.7). The overall Cronbach’s alpha is 0.76
including all 13 items. The value of average variance extracted (AVE) greater
than or equal to 0.5 ratifies value for component 1, 2, 3, and 4 are 0.80, 0.79, 0.81,
and 0.74 respectively, which measures the internal consistency in scale items.

3.3. Binary Probit Model


Table 3 demonstrates the results estimated from binary probit model using max-
imum likelihood method. The dependent variable revisit intention (RI), is a dis-
crete variable that represents the mutually exclusive categories of budget travel-
lers’ intention to revisit the destination or not.
The probit model is used to model a relationship between a dependent varia-
ble RI and all 13 independent variables. The independent variables are assumed
to affect the choice of repeat tourism, and signify a priori beliefs about the asso-
ciative features important in the choice process. The model has been estimated
by the maximum likelihood method. The estimated coefficients and standard
errors disclose the factors that influence budget travellers’ intention to revisit.

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N. Shrestha

Table 3. Estimates of the binary probit model.

Marginal
Variable Coefficient Std. error. z-statistics
effects

Constant −32.02*** 7.72 −4.15 -

Tourist guide service 0.54* 0.28 1.94 0.035

Communication facilities −0.011 0.26 −0.04 −0.0007

Adventure sports 2.14*** 0.68 3.15 0.139

Culture and festivals −0.33 0.45 −0.72 −0.021

Trekking and mountaineering 1.13* 0.61 1.83 0.074

Personal safety & security 0.28 0.48 0.59 0.018

Relaxing environment −0.26 0.51 −0.51 −0.017

Jungle safari and sight seeing 0.93 0.58 1.61 0.061

Experiencing different lifestyle 1.64*** 0.61 2.68 0.11

Local food and service 0.21 0.37 0.56 0.014

Family owned teahouse/homestay 0.47 0.39 1.19 0.03

Behavior & cordiality of local people 1.09** 0.49 2.21 0.072

Historic & religious places 0.94** 0.43 2.17 0.062

Log-Likelihood −24.295 Akaike IC 0.383

McFadden Pseudo-R2 0.707 Bayesian IC −936.89

LR Chi2 (df = 13) 116.98

Significance level 0.0001

Predicted percentage correction 93.5

Note: (*), (**), (***) denote significance at the 10%, 5%, and 1% levels, respectively.

A statistically significant coefficient at 5% level of probability indicates that


the likelihood of revisit intention of the traveller will increase if the value of the
independent variable increases (Liao, 1994 [34]; Borooah, 2002 [42]). The like-
lihood ratio chi-square of 116.98 with a p-value of 0.0001 indicates that the model
as a whole is statistically significant, that is, it fits significantly better than the
model with no predictors. The probit regression coefficients provide the varia-
tion in the z-score or probit index for a unit change in the independent variable
(Long, 1997) [43].
McFadden’s Pseudo-R2 was calculated as 0.71, which demonstrates that the
explanatory variables included in the probit model illuminate significant pro-
portion of the variations to revisit the destination or not. 71% McFadden’s
Pseudo-R2 also indicates that variables assigned in the probit model explain high
level of the probabilities of revisit intention of the budget traveller. The correct

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N. Shrestha

prediction rate attained from the binary probit model is 93.5%, which indicates
that this model predicts 93.5% of the cases correctly.
The predictor variables tourist guide service, adventure sports, trekking and
mountaineering, experiencing different lifestyle, behavior & cordiality of local
people, and historic & religious places have statistically significant effect on the
revisit intention of the budget traveller at 10%, 5% and 1% level of significance.
These variables were also found to be important determinants of revisit inten-
tion by previous studies (Kozak, 2001 [17]; Seetanah et al., 2020 [19]; Bam &
Kunwar, 2020 [26]; Mok et al., 1995 [44]). The variables considered in this study
were relevant to the budget travellers visiting Gandaki province but may not be
appropriate to the mainstream tourists visiting other destination. There are very
few studies that considered tourists’ satisfaction and their repeat visit to Nepal.
The finding of this study is consistent with the studies in which predictors hos-
pitality service, qualities of activities around the destination, adventure, behavior
of people, and cost of a stay significantly influenced the tourist overall satisfac-
tion and satisfaction influenced revisit intention (Bigne et al., 2009 [15]; Um et
al., 2006 [16]; Bam & Kunwar, 2020 [26]).
Table 3 also demonstrates the average marginal effects. The marginal effect
for the variable satisfaction with tourist guide service is 0.035; it means the
probability of revisit intention of travellers will increase by 3.5%. According to
marginal effect, for a predictor satisfaction with adventure sports, the probability
of revisiting the destination is increased by 14%. The marginal effect of the vari-
able satisfaction with trekking and mountaineering is 0.074; it indicates that the
probability of revisit intention will increase by 7.4%. The marginal effect of va-
riable satisfaction with experiencing different lifestyle will increase intention of
revisit by 11%. The marginal effect of satisfaction with behavior & cordiality of
local people will increase to revisit intention by 7.2%. The marginal effect value
(0.062) indicates that the budget travellers’ satisfaction with historic & religious
places is 6.2% more likely to have to revisit intention.
To sum up, the present study reveals the male participants were more than the
female to visit Gandaki province of Nepal. The participants of this study were
assumed to be budget travellers. The mean age of participants was 35.7 years.
The majority (80%) of the tourists were from the age group 16 to 45 years. More
than half (58.5%) of the participants were from Asian countries. 30.5% of the
tourist visited for the purpose of adventure including trekking and mountai-
neering. The average length of stay of participants was 12.72 days. The tourists
were considered to be budget travellers as 92% of them spent less than $40 per
person per day during their visit. The socio-demographic findings are consistent
with the Nepal tourism statistics report published in 2020 (MoCTCA, 2020) [4].
Using factor analysis, four components were extracted as a major constructs
associated to the satisfaction of budget travellers. They were people and heritage,
natural environment and beauty, adventure, and tourist information. Similar
constructs were observed in the previous literature (Bigne et al., 2009 [15]; Um

DOI: 10.4236/oalib.1107210 11 Open Access Library Journal


N. Shrestha

et al., 2006 [16]; Bam & Kunwar, 2020 [26]). The probit model predicts 93.5% of
the cases correctly. The outcome of probit model analysis shows that satisfaction
with destination characteristics such as historic and religious places, experienc-
ing different lifestyle, trekking & mountaineering, adventure sports, and tourist
guide service are realized to significantly influence the probability of revisit in-
tention of budget travellers to Nepal.

4. Conclusions
This study discussed on the satisfaction of budget travellers with various desti-
nation attributes that influence their intention to revisit to Nepal. The findings
of this study disclosed that various features of destination satisfaction included
in the survey questionnaire were extracted by factor analysis into four compo-
nents such as people and heritage, natural environment & beauty, adventure,
and tourist information. The influences of all 13 factors on revisit intention of
budget travellers were examined using binary probit model.
The result of probit model revealed that the predictors of destination satisfac-
tion with tourist guide service, adventure sports, trekking & mountaineering,
experiencing different lifestyle, behavior & cordiality of local people, and historic
& religious places have statistically significant effect on the revisit intention of
the budget traveller. The present study makes use of cross-sectional data with
non-probability sampling method, so it cannot be generalized for the large pop-
ulation. However, the findings of the study will be beneficial to the stakeholders
of tourism industry to make plan and policy.

Conflicts of Interest
The author declares no conflicts of interest regarding the publication of this paper.

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