Abstract
This study investigates the effects of low-cost carriers (LCCs) on international tourism supply in ASEAN. Using panel data for seven ASEAN countries over the period 2010 to 2022 and employing multiple estimation approaches, the analysis examines how LCC development influences three proxies for tourism supply, namely the number of international airports, tourism employment, and accommodation capacity. The results indicate that LCCs exert positive and statistically significant effects on both international airports and tourism employment. In contrast, the effect on accommodation capacity is primarily indirect and operates through an increase in international tourist arrivals, which serves as a mediating variable. The study also clarifies the moderating roles of macroeconomic conditions, including GDP, exchange rates, and government expenditure. The main contribution lies in providing an integrated assessment of both direct and indirect LCC effects on tourism supply in the ASEAN context, which remains underexplored in prior research. Based on these findings, the study offers policy implications to support infrastructure expansion, workforce development, and the sustainable enhancement of destination capacity
