nep-tur New Economics Papers
on Tourism Economics
Issue of 2007‒09‒09
six papers chosen by
Antonello Scorcu
University of Bologna

  1. The Impact of a Carbon Tax on International Tourism By Richard S.J Tol
  2. Coastal tourism versus inland Portuguese tourism. The Serra da Estrela tourist destination By Vaz, Margarida; Dinis, Anabela
  3. Cruise Tourism: challenges and opportunities for coastal regional development. The Carribean case of the West Indies. By Grandi, Silvia; Sala, Anna Maria
  4. Airline Emissions of Carbon Dioxide in the European Trading System By John FitzGerald; Richard S.J Tol
  5. Sngapore economy:the way ahead By Venu Menon, Sudha
  6. Relative remote rural areas (RRRA)in developed regions: an analysis of the Emilia-Romagna region to support policy decision making. By Zabbini, Enza; Grandi, Silvia; Dallari, Fiorella

  1. By: Richard S.J Tol (Economic and Social Research Institute (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: 2006–11
  2. By: Vaz, Margarida; Dinis, Anabela
    Abstract: This article looks at the Serra da Estrela mountain range as a tourist destination in the context of the inland Portuguese tourist destinations, identifying its direct competitors as well those that complement its tourism offer. We note the changes in national tourist dynamics, with the inland regions growing at a faster rate than the coastal ones. As a tourist destination the Serra da Estrela could benefit from having the Douro (whose growth is greater) and the Central Alentejo regions (the more established inland destination) as allies. Furthermore, the Serra da Estrela needs to increase its competitive profile to compete with the Trás-os-Montes region, which presents similar competitive arguments (rural and mountain destination).
    Keywords: Coastal tourist destinations; inland tourist destinations; comparative advantages; competitive advantages; territorial marketing.
    JEL: R11 M3 L83
    Date: 2007
  3. By: Grandi, Silvia; Sala, Anna Maria
    Abstract: Cruise tourism is rapidly growing in the last ten years worldwide and not just in North America. From a niche market it is becoming an important way to diversify the tourist supply and a stimulus for the coastal regional develoment even if sustainability is challenging. Identifying an itinerary and route, is central both for tour operators and shipowners in order to define a cruise product, and for port authorities in major and marginal places. The Caribbean area has been a precurson of the fenomenom and in this working paper it is presented the case of the West Indies' area with a specific discussion about Barbados.
    Keywords: Cruise Tourism; Coastal Development Economy; Ship Itineraries; Sustainable Development
    JEL: L92 R49 L83
    Date: 2006–09
  4. By: John FitzGerald (Economic and Social Research Institute (ESRI)); Richard S.J Tol (Economic and Social Research Institute (ESRI))
    Abstract: A simulation model of international tourist flows is used to estimate the impact of including carbon dioxide emissions from aviation fuels in the European Trading System. The effect on global carbon dioxide emissions from international aviation is minimal: -0.01% at current permit prices, and –0.13% for the aggressive climate policy advocated by the Stern Review. In the latter case, total CO2 emissions from fossil fuels would fall by 0.004%, and total greenhouse gas emissions by 0.002%. Tourist numbers in Europe would fall by up to 0.6%, and would increase in the rest of the world. If the permits are grandparented, the airlines would receive a subsidy of €3 bln at current prices, and €40 bln for the Stern policy. If permits are auctioned, the effect on the airline industry would be minimal. Including aviation in the market for emission permits has almost no effect on the environment and may have a negative effect on the economy.
    Keywords: International tourism, tradable permit, carbon dioxide, aviation
    Date: 2007–01
  5. By: Venu Menon, Sudha
    Abstract: Singapore consistently ranks high among 'most attractive countries for international business' and has achieved a per capita GDP level comparable to levels of developed western nations. Though the economy was affected by Asian financial crisis, the country's sound macroeconomic fundamentals, as well as the government's efforts to cut business costs, resulted in economic rebound in 1999 and 2000. However, from 2001 to 2003, the economy was hard hit again by the global recession as well as by the slump in the technology sector. The outbreak of SARS in 2003 further slammed the economy by substantially reducing tourism and consumer spending. Since mid-2003, Singapore's economy has recovered rapidly due to a favorable external environment, supportive macroeconomic policies, and continued structural reforms. While near-term prospects are favorable, sustaining robust growth over the medium term will require the country to meet the rising challenges from low-cost regional economies. Against this context, this article attempts to analyze the growth prospects of Singapore economy in the present era of globalization, competition and multilateral trade agreements. Section one attempt to analyze competition from India China and Malaysia and the recent strategies adopted by Singapore to address the challenge. Section two examines the current economic overview of Singapore. Section three evaluates the priority areas of Singapore –investment in education, R&D, addressing ageing problem, rowing high trust services [legal services, financial services, maritime and aviation], IT Connectivity and energy hub, increase in international trade and branding Singapore as a global city.
    Keywords: Singapore; Asia; economy
    JEL: O10
    Date: 2007–07–26
  6. By: Zabbini, Enza; Grandi, Silvia; Dallari, Fiorella
    Abstract: This paper addresses the identification and the analysis of the remote rural areas (RRA) that should be at the center of future regional development policies for periphery areas in averagely highly developed territories, such as the Emilia-Romagna region. However, since none of the areas of the region can be defined lagging or underdeveloped when compared with the EU 25 countries, it is introduced the concept of “Relative” Remote Rural Area (RRRA) which partially could recall the semi-periphery in the theoretical scheme of Immanuel Wallestrein or the trasition area of Friedmann. Methodologically, the investigation is done both by using as a basis an intermediate geographical level that can be considered in line with the NUTS4 one: the SLL (Local Working Systems) identified by the Italian Institute of Statistics (ISTAT), and by a NUTS5-level cluster analysis performed using a selection of indicators, which includes demographic, socio-economic, employment, agricultural, infrastructure and commuting patterns. This work led to the identification and mapping of a set of municipalities that show the higher remote & rural features of the region. The Province of Ferrara resulted the NUTS3 level with the highest RRRA. After a discussion upon the main characteristics of this areas, preliminary policy indications for these territories are given.
    Keywords: remotness; rurality; local working system (SLL); geographical economic analysis; regional policy
    JEL: R12 C88 R15 R58 C30 R14
    Date: 2007–07

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