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on Tourism Economics |
| By: | Michael McAleer (University of Western Australia); Riaz Shareef (University of Western Australia); Bernardo da Veiga (University of Western Australia) |
| Abstract: | International tourism is the principal economic activity for Small Island Tourism Economies (SITEs). There is a strongly predictable component of international tourism, specifically the government revenue received from taxes on international tourists, but it is difficult to predict the number of international tourist arrivals which, in turn, determines the magnitude of tax revenue receipts. A framework is presented for risk management of daily tourist tax revenues for the Maldives, which is a unique SITE because it relies entirely on tourism for its economic and social development. As these receipts from international tourism are significant financial assets to the economies of SITEs, the time-varying volatility of international tourist arrivals and their growth rate is analogous to the volatility (or dynamic risk) in financial returns. In this paper, the volatility in the levels and growth rates of daily international tourist arrivals is investigated. |
| Keywords: | Small Island Tourism Economies (SITEs), International tourist arrivals, Tourism tax, Volatility, Risk, Value-at-Risk (VaR), Sustainable Tourism-@-Risk (ST@R) |
| JEL: | G18 C32 L83 D81 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.137&r=tur |
| By: | Guido Candela (University of Bologna); Paolo Figini (University of Bologna); Antonello E. Scorcu (University of Bologna) |
| Abstract: | In this paper we analyse the Local Tourist System (LTS) as a particular case of Marshallian Industrial District. The LTS allows the identification of more effective policy tools for managing tourism. First, through the concept of LTS, the policy maker can take into account the complexity of tourism, characterised by a strong heterogeneity of goods, services and subjects involved; second, LTS helps promote a stronger co-ordination between the public and the private sector, by identifying a homogeneous territory and recognising its importance in tourists' decisions; third, through the LTS the policymaker can analyze the externalities and promotes the idea of collaborating networks in a context of local development. In the LTS framework, the anticommon problem can be analysed and contrasted. As the tourist has to buy different but intertwined goods which compose the holiday package, the failure in one of the markets can lead to the overall failure of the package. A LTS policy has to: i) co-ordinate the price policy of the different firms supplying “single components” of the tourist product; ii) fix the price of the whole product; iii) impute a price to each component. We demonstrate that, through price policy co-ordination and under general conditions, the LTS can increase the size of tourism and the firms’ profits, thereby reaching a more effective and efficient target in tourism policy. The recent introduction of LTS in the Italian legislation can be seen as a positive attempt of improving co-ordination in a complex sector such as tourism. |
| Keywords: | Local tourist systems, Tourism policy |
| JEL: | L83 Q26 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.138&r=tur |
| By: | Anna Alberini (University of Maryland); Alberto Longo (University of Bath) |
| Abstract: | This paper applies the travel cost method to visits to cultural sites in Armenia by domestic visitors. Respondents intercepted at four cultural monuments provided information on their visitation patterns, experience at the site, perception of the state of conservation of the monuments, and rating of the quality of the services and infrastructures. We combine actual trips with stated trips under hypothetical programs that would enhance the conservation of the monuments and improve one of (i) the cultural experience at the site, (ii) the quality of the infrastructure, or (iii) the quality of the services, and use the combined actual and stated trips to fit a panel data model. Our investigation shows that that there are significant use values associated with the four study monuments, and that conservation programs and initiatives that improve the cultural experience, or simply make it easier for the respondent to reach and spend time at the monument, are valued by domestic visitors and would encourage higher visitation rates. |
| Keywords: | Valuation of cultural heritage sites, Non-market valuation, Travel cost, Consumer surplus, Contingent behavior |
| JEL: | Z10 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.112&r=tur |
| By: | Valentina Zanatta (DICAS - Politecnico di Torino); Paolo Rosato (Università di Trieste and Fondazione Eni Enrico Mattei) |
| Abstract: | Speed limits were introduced in the Lagoon of Venice in 2002 to reduce wave motion, which damages environmentally sensitive areas in the broader Lagoon as well as buildings in the city of Venice. In this paper, we estimate the welfare losses experienced by recreational boaters as a result of the speed limits. We fit a single-site travel cost model to a sample of boaters intercepted as they depart from or arrive to marinas and launching ramps on the Lagoon. Our Poisson model is corrected for truncation and endogenous stratification. We construct three measures of the price per trip, which allow us to check the sensitivity of models and welfare estimates to possible measurement errors in the opportunity cost of time. Our results are robust to the measure of price used and conservatively peg the welfare losses of boaters to €7.7-9.6 million per year. Even under conservative assumptions, the welfare losses of boaters are sufficiently large that, given current monitoring and enforcement of the speed limits, we believe there is a strong incentive for boaters to disregard the limits. |
| Keywords: | Travel cost method, Single-site model, Speed limits, Natural resources management |
| JEL: | Q26 Q28 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.135&r=tur |
| By: | Raffaele Miele (Università degli Studi di Napoli Federico II); Francesco Mola (Università degli Studi di Cagliari) |
| Abstract: | In this paper an alternative Tourism oriented Data Warehousing architecture is proposed which makes use of the most recent free and open source technologies like Java, Postgresql and XML. Such architecture's aim will be to support the decision making process and giving an integrated view of the whole Tourism reality in an established context (local, regional, national, etc.) without requesting big investments for getting the necessary software. |
| Keywords: | Tourism, Data warehousing architecture |
| JEL: | L83 C81 |
| Date: | 2005–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.142&r=tur |
| By: | Nakatani, Tomoaki (Dept. of Economic Statistics, Stockholm School of Economics); Sato, Kazuo (Dept. of Dairy Science, Rakuno Gakuen University) |
| Abstract: | This paper extends the truncated and endogenously stratified Poisson and negative binomial models to three alternative discrete distributions, namely the generalized Poisson, geometric, and Borel distributions. Our primary intention here is to demonstrate how improper treatment of the data generates divergent outcomes by applying those distributions to recreation trip data gathered from surveys of visitors to an indigenous horse park in Japan. <p> Our empirical application shows that failure to account for overdispersion, truncation, and endogenous stratification leads to substantial changes in parameter estimates and their standard errors. The parameter on the travel cost tends to be underestimated in absolute value in the standard setups. This results in serious overestimation of the economic benefit that the recreation site offers to society. Even when the endogenous stratification is incorporated, ignoring overdispersion causes the per capita per trip consumer's surplus to be over seven times larger than that obtained when endogenous stratification and overdispersion are considered. |
| Keywords: | Count data models; Endogenous stratification; Overdispersion; Recreation demand analysis; Consumer's surplus |
| JEL: | C34 C35 D12 Q26 |
| Date: | 2005–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hastef:0615&r=tur |
| By: | Tiago Neves Sequeira (Universidade da Beira Interior); Carla Campos (Universidade da Beira Interior) |
| Abstract: | On average, tourism-specialized countries grow more than others. This fact is inconsistent with economic theory as, in particular, endogenous growth theory suggests that economic growth is linked with: (1) sectors with high intensity in R&D and thus high productivity; (2) large scale. In this paper, we use panel data methods to go further in treating the endogeneity problem. In general and contrary to previous works, we conclude that tourism, on its own, cannot explain the higher growth rates of these countries. |
| Keywords: | Tourism, Economic growth, Panel data |
| JEL: | L83 O40 O50 |
| Date: | 2005–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.141&r=tur |
| By: | Simone Valente (WIF-ETH Zurich) |
| Abstract: | This paper extends the ’expanding-varieties’ growth model in a two-countries-two-goods setup, and describes the dynamics of growth rates and terms of trade when the industry-based economy is the innovation leader, while the tourism-based economy is the follower (i.e. increases the number of intermediate inputs by readapting innovations developed abroad). Two types of transitional dynamics may exist: technological catching-up and technological falling-behind. Contrary to the standard result, technological catching-up by the follower is associated with lower growth rates with respect to the leader, whereas terms-of-trade effects guarantee positive growth differentials for the tourism-based economy when the technological gap with the leader increases over time. The underlying principle of ’increased relative demand’ might explain the good economic performance observed in tourism-dependent economies. |
| Keywords: | Endogenous growth, Two-country models, Technology diffusion, Trade specialization |
| JEL: | F12 F43 O33 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.140&r=tur |
| By: | Pasquale M. Sgro (Deakin University); Chi-Chur Chao (Deakin University and Chinese University of Hong Kong); Bharat R. Hazari (Deakin University and CEPREMAP); Jean-Pierre Laffargue (CEPREMAP); Eden S. H. Yu |
| Abstract: | This paper examines the effects of tourism in a dynamic model of trade on unemployment, capital accumulation and resident welfare. A tourism boom improves the terms of trade, increases labor employment, but lowers capital accumulation. The reduction in the capital stock depends on the degree of factor intensity. When the traded sector is weakly capital intensive, the expansion of tourism improves welfare. However, when the traded sector is strongly capital intensive, the fall in capital can be a dominant factor in lowering national welfare. This dynamic immiserizing result of tourism on resident welfare is confirmed by simulations on German data. |
| Keywords: | Tourism, Employment, Capital accumulation, Welfare |
| JEL: | O10 F11 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2005.136&r=tur |