Q1: (SQ) Why can we use a simplified model assuming constant prices (in terms of Japanese Yen) to analyse the recent trend of Hong Kong people traveling to Japan?
In recent years, Japan has experienced a low level of inflation for most of the time, and the changes in its price level have been relatively insignificant. (Assuming constant prices simplifies the variables considered in the analysis.)
Q2: (SQ) According to the research results, how do the exchange rate and disposable income affect the number of tourism visits from Hong Kong to Japan?
According to the research results, if an additional Japanese Yen can be exchanged for one Hong Kong Dollar, the annual number of tourism visits from Hong Kong to Japan would increase by approximately 111,790 (person-visits). For every HKD 1 increase in per capita disposable income, the annual number of tourism visits from Hong Kong to Japan would increase by approximately 10 (person-visits)