nep-tur New Economics Papers
on Tourism Economics
Issue of 2007‒05‒12
seven papers chosen by
Antonello Scorcu
University of Bologna

  1. The Impact of a Carbon Tax on International Tourism By Richard S.J. Tol
  3. Biodiversity, International Tourism and development By Andreas Freytag; Christoph Vietze
  5. The impact of post-9/11 visa policies on travel to the United States By Neiman, Brent; Swagel, Phillip
  6. Economic Growth, Trade, and Environmental Quality in a Two-region World Economy By Sibel Sirakaya; Stephen Turnovsky; Nedim Alemdar
  7. Valuing the Cultural Monuments of Armenia: Bayesian Updating of Prior Beliefs in Contingent Valuation By Anna Alberini; Alberto Longo

  1. By: Richard S.J. Tol (ESRI)
    Abstract: A simulation model of international tourist flows is used to estimate the impact of a carbon tax on aviation fuel. The effect of the tax on travel behaviour is small: a global $1000/tC would change travel behaviour to reduce carbon dioxide emissions from international aviation by 0.8%. This is because the imposed tax is probably small relative to the air fare. A $1000/tC tax would less than double air fares, and have a smaller impact on the total cost of the holiday. In addition, the price elasticity is low. A carbon tax on aviation fuel would particularly affect long-haul flights, because of high emissions, and short-haul flights, because of the emission during take-off and landing. Medium distance flights would be affected least. This implies that tourist destinations that rely heavily on short-haul flights (that is, islands near continents, such as Ireland) or on intercontinental flights (e.g., Africa) will see a decline in international tourism numbers, while other destinations may see international arrivals rise. If the tax is only applied to the European Union, EU tourists would stay closer to home so that EU tourism would grow at the expense of other destinations. Sensitivity analyses reveal that the qualitative insights are robust. A carbon tax on aviation fuel would have little effect on international tourism, and little effect on emissions.
    Keywords: International Tourism, Tax, Carbon Dioxide, Aviation
    JEL: L83 L93 Q54
    Date: 2007–03
  2. By: Karen Mayor; Richard S.J. Tol (Economic and Social Research Institute, Dublin)
    Abstract: We use a model of domestic and international tourist numbers and flows to estimate the impact of the EU-US Open Skies agreement that is to take effect in March 2008. The Open Aviation Area will result in increased competition between transatlantic carriers and consequently falls in the cost of flights, therefore we look at the change in visitor numbers from the US into the EU and corresponding CO2 emissions. We find that passenger numbers arriving from the US to the EU will increase by approximately 1% and 14% depending on the magnitude of the price reductions. This increase in passenger numbers does not however result in a corresponding rise in emissions as arrivals into other countries from the US fall by a comparable amount. The number of tourist arrivals from the US to countries outside of the EU will fall and overall emissions would then increase by a maximum of 0.7%. If we assume that domestic holidays and foreign holidays are close substitutes these effects are strengthened and US passengers switch from domestic trips to foreign destinations as airfares converge.
    Keywords: International tourism, open skies agreement, carbon dioxide emissions
    JEL: L83 L93 Q54
    Date: 2007–04
  3. By: Andreas Freytag (University of Jena, School of Busniess and Economics); Christoph Vietze (University of Jena, School of Busniess and Economics)
    Abstract: We analyze whether biodiversity is increasing the receipts of tourism and beneficial for Least Developed Countries (LDCs). The underlying assumption is that a rich biodiversity provides a comparative advantage for most LDCs. We use a simple trade theory framework. The model is supported by an empirical analysis. The main findings are that first LDCs seem to have a comparative advantage in (sustainable) tourism, that second incidence of birds as the probably best explored taxonomic group has a positive impact on inbound tourism receipts per capita, and that third the rate of endangered to total birds is negatively influencing tourism receipts.
    Keywords: tourism, economic growth, biodiversity conservation
    JEL: F18 Q26
    Date: 2007–05–01
    Abstract: The paper starts from the roles of the human resources in the development of the tourist agencies’ activities (the role of stimulator, creator and coordinator factor of the activity) and has as a purpose to emphasize the essential problems of the human resources management in this kind of activity: creating a team work, its motivation and its creativity.
    Keywords: human resources; team; motivation; creativity
    JEL: M12
    Date: 2007–02–20
  5. By: Neiman, Brent; Swagel, Phillip
    Abstract: This paper examines the impact of post-9/11 changes in visa and security policy on business and leisure travel to the United States. American businesses, tourism industry representatives, and politicians pointed to changes in visa policies as being responsible for a sharp decline in short-term visitors following the September 11 attacks. Several foreign governments likewise complained that visa requirements and other security measures were making it difficult for their citizens to travel to the United States. Using an empirical model which distinguishes the impact of visa policy from economic and country-specific factors, we find that changes in visa policy in the aftermath of 9/11 were not important contributors to the decrease in travel to the United States. Rather, the reduction in entries was largest among travelers who were not required to obtain a visa.
    Keywords: Visa Policy; Differences-in-differences; Economics of National Security
    JEL: F52 F2
    Date: 2007–04
  6. By: Sibel Sirakaya; Stephen Turnovsky; Nedim Alemdar
  7. By: Anna Alberini (AREC, University of Maryland); Alberto Longo (Queen's University Belfast)
    Abstract: We use contingent valuation to place a value on the conservation of built cultural heritage sites in Armenia. When we present the hypothetical scenario in the questionnaire we spell out what would happen to the monuments in the absence of the government conservation program. We posit that respondents combine such information with their own prior beliefs, which the questionnaire also elicits, and that the WTP for the good or program is likely to be affected by these updated beliefs. We propose a Bayesian updating model of prior beliefs, and empirically implement it using the data from our survey. We find that uncertainty about what would happen to the monument in the absence of the program results in lower WTP amounts.
    Keywords: Valuation of Cultural Heritage Sites, Non-Market Valuation, Contingent Valuation, Bayesian Updating, Prior Beliefs
    JEL: Z10
    Date: 2007–04

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