nep-tur New Economics Papers
on Tourism Economics
Issue of 2008‒11‒25
fifteen papers chosen by
Antonello Scorcu
University of Bologna

  1. Issues and Constrains in Manpower Supply in Indian Hospitality Industry By Subbarao Srinivas P.
  2. Agritourism flows to Italy: an analysis of determinants using the gravity model approach By Santeramo, F.G.; Seccia, A.; De Blasi, G.; Carlucci, D.
  3. Evaluating the Diversifying Market for and Viability of Rural Tourism Activity in Japan By Ohe, Y.
  4. Farm Tourism and Spatial Competition By Andersson, H.; Hoffmann, R.
  6. REFORMING PILLAR 2 €ӔOWARDS SIGNIFICANT AND SUSTAINABLE RURAL DEVELOPMENT? By Bergmann, Holger; Dax, Thomas; Hocevar, Vida; Hovorka, Gerhard; Juvancic, Luka; Kroger, Melanie; Thomson, Kenneth J.
  7. Should carbon issues modify agri-environmental support to mountain grazing? A case study in the Italian Alps By Raffaelli, R.; Notaro, S.; Gios, G.
  8. Forest and landed real estate owners; suppliers of rural amenities and agricultural land By Polman, N.B.P.; Slangen, L.H.G.
  9. A SYSTEM DYNAMICS MODEL OF AGRICULTURE AND RURAL DEVELOPMENT: THE TOPMARD CORE MODEL By Johnson, Thomas G.; Bryden, John; Refsgaard, Karen; Alva Lizarraga, Sara
  11. Dynamic impacts of a financial reform of the CAP on regional land use, income and overall growth. By Jansson, T.; Bakker, M.M.; Le Mouel, P.; Schirmann-Duclos, D.; Verhoog, D.; Verkerk, P.J.
  12. The impacts of knowledge of the past on preferences for future landscape change By Colombo, Sergio; Hanley, Nick; Ready, Richard
  13. Biodiversity Conservation through Public Management in Cultural Landscapes: Integrating Economic and Ecological Evaluation of Species by Shadow Prices By Nuppenau, E.-A.
  14. Businessman or Host? Individual Differences between Entrepreneurs and Small Business Owners in the Hospitality Industry By Wagener, S.L.; Gorgievski-Duijvesteijn, M.J.; Rijsdijk, S.A.
  15. Valuation of Externalities in Water, Forests and Environment for Sustainable Development By Varghese, Shalet K.; Manjunatha, A.V.; Poornima, K.N.; Akarsha, B.M.; Rashmi, N.; Tejaswi, P.B.; Saikumar, B.C.; Jeevarani, A.K.; Accavva, M.S.; Amjath Babu, T.S.; Suneetha, M.S.; Unnikrishnan, P.M.; Deshpande, R.S.; Nagaraj, N.; Chandrashekar, H.; Mahadev, G. Bhat; Chengappa, P.G.; Mundinamani, S.M.; Shanmugam, T.R.; Chandrakanth, M.G.

  1. By: Subbarao Srinivas P.
    Abstract: By the very nature of tourism as a service industry, its efficient management and successful operation depend largely on the quality of manpower. In India, the shortage of skilled manpower poses a major threat to the overall development of tourism. In particular, the rapid expansion of hotels of an international standard in India is creating a high level of demand for skilled and experienced staff. The nature of the decisions facing hotel management is continually expanding. For their business to remain competitive, managers must be skilful in many diverse areas. Tourism statistics reveal that both domestic and foreign tourism are on a robust growth path. This growth will need to be serviced by a substantial increase in infrastructure, including air-road, rail connectivity as well as hotels and restaurants The availability of skilled and trained manpower is a crucial element in the successful long-term development and sustainability of a tourist destination. Skilled and trained human resources will ensure the delivery of efficient, high-quality service to visitors, which is a direct and visible element of a successful tourism product. High standards of service are particularly important in sustaining long-term growth, since success as a tourist destination is determined not only by price competitiveness or the range of attractions available, but also by the quality of the services provided, there by the qualified human capital. This paper elaborates the issues and constrains relating to demand and supply of manpower in hospitality industry and also suggested the recommendations to fill the gap.
    Date: 2008–02–12
  2. By: Santeramo, F.G.; Seccia, A.; De Blasi, G.; Carlucci, D.
    Abstract: Tourism represents one of the most important income sources for Italy. In recent years, apart from €ܴraditional€ݠdestinations, tourism supply is widely changing in order to satisfy the customers €ܬove for variety€ݠand valorise marginal resources, then new formulas are emerging (e.g. agritourism). This work aims to elaborate and estimate an econometric model able to adequately explain the size of agritourists flows to Italy from main partner countries using the gravity model approach that has been broadly applied to the analysis of international flows. In this work, the €ܢasic€ݠmodel has been enlarged and improved with the introduction of other explicative variables. The results has allowed to confirm empirical validity of the gravity model in studying international flows of any nature. Furthermore, the estimated econometric model represents a useful analytical instrument to describe, and, eventually, predict demand of foreign visitors for agritourist vacations in Italy.
    Keywords: Gravity Model, Agritourism, Rural tourism, Tourism flows, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,
    Date: 2008
  3. By: Ohe, Y.
    Abstract: This paper evaluated diversified rural tourism activities from the perspectives of economic viability and endogenous utilization of rural resources and investigated labour productivity. First, we presented a conceptual framework on how to evaluate economic viability and the endogenous mobilization of rural resources. Second, we empirically evaluated economic viability, the supply shift effect of endogenous utilization of rural resources and labour productivity with regard to rural tourism. The main findings are as follows. First, examination of the three main activities, i.e. accommodation, restaurant operation and direct selling of farm products, showed that both full-time and part-time labour input contribute more effectively to better sales than such labour for farm experience services, which means that these activities are viable whereas other activities that provide farming experience services did not yet clearly show evidence of a viable farm business. Second, we could not confirm the supply shift effect of endogenous innovative use of rural resources. Overall, it was evaluated that rural tourism in this country is undersupplied at a social optimal level. In the long run, institutional conditions for market formation and management skills for endogenous innovation in utilization of rural resources should be more intensely developed as a part of rural resource management policy.
    Keywords: rural tourism, rural resources, farm diversification, Community/Rural/Urban Development,
    Date: 2008
  4. By: Andersson, H.; Hoffmann, R.
    Abstract: Changes in EU agricultural policies towards an increased focus on rural development issues raise questions regarding the economic impact of local and regional spatial competition. Farmers are typically price takers in the traditional markets for the major agricultural products. This is, however, not necessarily the case for €ܮew enterprises€ݠactive in local and regional markets. This paper examines local/regional spatial competition for farm tourism. A spatial econometrics framework is applied to a hedonic pricing model. It is shown that spatial dependence affects the pricing of both Self-catering and Bed & Breakfast. However, the results indicate that local/regional competition may have a positive effect on the former but a negative effect on the latter. The findings illustrate the potential importance of local competition for rural developments studies.
    Keywords: farm tourism, spatial competition, rural development, Community/Rural/Urban Development,
    Date: 2008
  5. By: Rena, Ravinder
    Abstract: The Warsai-Yikeaalo Program (WYP) has been introduced in Eritrea with an objective of constructing and reconstructing the infrastructure in the country. It has been under implementation since May 2002. The present study has been carried out to assess the impact of WYP in Eritrea in the infrastructure and economic development of the country. The defense personnel who are in the national service and the permanent staff as well are carrying out all the works under this program. It is to be noted that infrastructure created for the last four years of the program helped to improve the economic development of Eritrea in the post war period. The construction of roads, railway, airports, and ports greatly helped movement of people and goods and services for the betterment of the people in the country. The study covers different sectors agriculture, industry, education, health, tourism services etc., of the economy. The study also revealed that the people are happy to see the infrastructure in different areas of rural Eritrea. The study was carried out during the period 2002 to 2005. This study has limitations in that it is confined to the impact of Warsai-Yikeaalo Campaign in the development of Eritrea. However, various other developments under this program have not been discussed in detail. The broader issues of the economics, cultural, and political aspects that related to Eritrean economic development are beyond the scope of the paper.
    Keywords: Warsai-Yikeaalo Program, Eritrea, Economic development, Agriculture, Industry, Tourism, education
    JEL: H54 A22 H51 Q13
    Date: 2006–06–04
  6. By: Bergmann, Holger; Dax, Thomas; Hocevar, Vida; Hovorka, Gerhard; Juvancic, Luka; Kroger, Melanie; Thomson, Kenneth J.
    Abstract: With the ongoing €܈ealth Check€ݠand the decisions needed for after 2013, the Common Agricultural Policy is likely to see another major reform and an increase in compulsory modulation. By employing a regional model, this paper compares the long-term impact of spending along the Pillar 2 Axes in NUTS3 areas on selected indicators of sustainability in several peripheral areas across Europe. The four case study areas are: Pinzgau-Pongau (a tourism-dominated alpine area in Austria), the Wetterau (an urbanised industrial area in Germany), Gorenjska (a tourism and manufacturing dominated area in Slovenia) and Caithness-Sutherland (a remote area in Scotland). The results suggest although devolution in European rural development policy has taken over the last 10 years, there is further need to restore place-based stewardship of public goods and services as well as private investments across rural areas in the European Union. Increasing the importance of Axis 2 and Axis 3 measures (part of CAP Pillar 2) therefore seems an obvious choice for the future. Furthermore, it is clear that the effects of wider societal trends such as the decreasing importance of agriculture, commuting and migration, can be weakened or amplified by EU funding but can not be reversed or significantly changed.
    Keywords: CAP, Pillar 2, rural development, Agricultural and Food Policy, R15, Q18, Q01,
    Date: 2008–11–12
  7. By: Raffaelli, R.; Notaro, S.; Gios, G.
    Abstract: The increasing importance of the carbon sequestration issue calls the researchers to investigate if the agri-environmental support (AES) to extensive mountain grazing granted under Regulations 2078/92, 1257/99 and 1698/2005 is still efficient. AES may have contributed to the maintenance of low carbon stocks in extensive grazing areas, which might otherwise have been abandoned and revegetated by species that assist carbon sequestration. We evaluate benefits and costs of supporting the maintenance of pastureland through cattle grazing in an Italian Alpine pasture for 2004. We focus on three non-commodity outputs of Alpine grazing €Ӭandscape-recreation amenities, carbon sequestration and contribution to economic vitality of the area- and three groups of agents: visitors, local community and EU households. The efficiency of supporting mountain grazing is demonstrated by a net benefit of euro 228,613. Landscape-recreational benefits are the key variable, as their value (euro 205,377) is large enough to justify the grazing activity and the related support. The value of carbon sequestration achievable with reforestation (euro 62,491) could not compensate the loss in tourism benefits. Net beneficiaries of the agri-environmental policy are not the farmers but the visitors and the local community. Transforming of the intangible goods (both landscape-recreational amenities and carbon sequestration) into tangible ones would favour the local community. The overall convenience of supporting the maintenance of Alpine pastureland through cattle grazing depends on the number and the types of benefits and costs we consider. When a complete evaluation of all the benefit and cost flow is impossible or when an aspect, previously considered as irrelevant, suddenly increases its importance (such in the case of carbon sequestration), an approach inspired by the precautionary principle is absolutely necessary and wise.
    Keywords: agri-environmental support, mountain grazing, carbon sequestration, Environmental Economics and Policy,
    Date: 2008
  8. By: Polman, N.B.P.; Slangen, L.H.G.
    Abstract: Land-use in rural areas may be reallocated between farmland and forest and nature areas. This paper addresses reasons for forest and landed estate owners to own their property and motivations for different activities of forest and real estate owners, including leasing out land to farmers. In 2006 we carried a survey among 171 forest and landed estates owners in the Eastern part of the Netherlands (response rate of 44%). Preserving family property, preserving nature and landscape, and hobby or spending free time are ranked as important reasons for having a forestry enterprise or a landed estate. Most of the owners can be characterised as multifunctional. They often fulfil a combination of wood production, preservation of nature and landscape, providing facilities for tourism and hunting, leasing out of land and agriculture. Based on results of regression analysis we can conclude that not every forest and landed estate owner prefers multifunctionality in a similar way. Leasing out land to farmers is one of activities where income is an important reason.
    Keywords: Landownership, multifunctionality, forest and landed estate owners, Land Economics/Use,
    Date: 2008
  9. By: Johnson, Thomas G.; Bryden, John; Refsgaard, Karen; Alva Lizarraga, Sara
    Abstract: The goal of the TOPMARD project is to develop a model of agriculture and rural development to better understand the agronomic, ecological, economic and social dimensions of rural regions. The resulting model, (Policy Model of Multifunctional Agriculture and Rural Development) was built collaboratively and hierarchically by the research teams from the 11 countries. The model features eight subsectors (Land, Agriculture, Tourism, Region, Human Resources, Non-commodities, Capital, and Quality of Life). Imbedded in the model are a complete dynamic input-output model, and an agecohort education demographic model. The model has both supply-side and demand-side drivers. Land use is the key supply-side driver. Land use, coupled with production system choices, determine agricultural and non-commodity outputs. The Quality of Life sector incorporates the coefficients from a regression analysis of migration behaviour to develop a supply-side population response to local quality of life which is added to the demand-side response to job growth.
    Keywords: Multifunctionality, system dynamics, policy, model, rural development, Community/Rural/Urban Development, Research Methods/ Statistical Methods, Research and Development/Tech Change/Emerging Technologies,
    Date: 2008
  10. By: Torquati, Biancamaria; Giacche, Giulia; Taglioni, Chiara; Musotti, Francesco
    Abstract: In periurban areas agriculture can assume a multifunctional role that includes landscape conservation, sustainable resource management, biodiversity conservation, leisure activities, and can also maintain adequate conditions in densely populated areas for a safe and habitable environment. This study investigates the effects of the introduction of single farm payment on the periurban agricultural area in the plain of the City of Assisi, an area with a strong landscape value. A survey was carried out to determine: changes in production, changes on farm incomes, structural adjustments, the level of multifunctionality of periurban agriculture. Moreover, a survey of 355 residents was made to assess their willingness to pay for some positive externalities of the agriculture in this area. The results suggest the low-impact of reform on farms and the existence of a significant demand for environmental and social functions of the periurban agriculture of this region.
    Keywords: Periurban Agriculture, Cap Reform, Economic Valuation, Contingent Valuation, Assisi, Agricultural and Food Policy, Research Methods/ Statistical Methods, Q10, Q18,
    Date: 2008–11–12
  11. By: Jansson, T.; Bakker, M.M.; Le Mouel, P.; Schirmann-Duclos, D.; Verhoog, D.; Verkerk, P.J.
    Abstract: In this paper we investigate the impacts of abolishing the Common Agricultural Policy (CAP) for the post-2013 European Union (EU) financial perspective and the impacts of re-investing the released funds on research and development (R&D). We apply a linked system of models to analyze the impacts for the EU member states. The linked system consists of five land-use sector models (agriculture, forestry, urban area, tourism and transport infrastructure), which are connected to a macro-econometric model. Additionally, a land cover model is used to disaggregate land use countries to a 1 km² grid. Three scenarios are analysed. In the €ܢaseline€ݠcurrently decided policies are assumed to be continued until 2025. In the €ܴax rebate€ݠscenario agricultural support (first pillar) is removed, and the member states€٠contributions to EU lowered. In the €ܒ&D investments€ݠscenario agricultural support is also removed, and the released funds are used to increase general R&D efforts in the EU. We find that in both liberalization scenarios, agricultural producer prices drop compared to the baseline. Agricultural production drops too, but less so in the €ܒ&D investment€ݠscenario due to productivity gains resulting from the increased R&D spending. In some countries, the productivity gains totally offset the negative impact of liberalisation on agricultural production. Smaller agricultural production implies less agricultural land use, and the more so in the €ܒ&D Investment€ݠscenario where productivity increases. The fall in agricultural production and prices negatively affects economic activity and households€٠purchasing power, but the reduced direct taxation compensates this effect and results in a GDP gain of 0.53% and 0.8 million additional jobs. In €ܒ&D investment€ݠGDP gain reaches 2.57% and yields 2.95 million additional jobs in EU in 2025. The GDP, consumption and employment gains in the €ܒ&D Investment€ݠscenario widely exceed the losses in the agriculture sectors. The analysis indicates that if no external effects of agriculture are considered, then the CAP is an inefficient use of tax money, and that a considerable contribution to reaching the goals of the Lisbon agenda would be achieved if the same amount of money was instead invested in R&D.
    Keywords: CAP reform, economical growth, land use, Agricultural and Food Policy, Land Economics/Use,
    Date: 2008
  12. By: Colombo, Sergio; Hanley, Nick; Ready, Richard
    Abstract: In this paper, we investigate whether people€ٳ knowledge of the past influences their preferences and values towards future landscape change. €܋nowledge of the past€ݠis one aspect of the information set held by individuals, and a well-established finding in stated preference work is that changes in information can change preferences and values. The case studies used here relate to prospective changes in woodland cover in a UK national park the Lock Lomond and Trossachs. We find that people who are made aware that the landscape has changed over time are more likely to favour changes to the current landscape. Knowledge of the past therefore seems to have an impact on preferences for future landscapes.
    Keywords: environmental economics, landscape valuation, national parks, Environmental Economics and Policy,
    Date: 2008
  13. By: Nuppenau, E.-A.
    Abstract: The paper deals with the problem of finding re-lative values for species in the case of biodiversity conservation in a cultural landscape. We use the concept of shadow prices to derive flexible functional forms that allow us to conduct an in-teractive and internal valuation process. The paper is organi-zed such as that (1) the theory of shadow price derivation is presented in a framework of programming. (2) We obtain qua-dratic objective functions for participant in the valuation pro-cess. (3) Quasi demand and supply functions are derived from which we can simulate a market. (5) The special role of ecolo-gists as experts and potential managers of a landscape is ad-dressed and (6), or finally, a balanced solution on values, value oriented management, and species prevalence is provided.
    Keywords: Valuation, cultural landscape, species composition and nature provision by farms, Environmental Economics and Policy, Resource /Energy Economics and Policy,
    Date: 2008
  14. By: Wagener, S.L.; Gorgievski-Duijvesteijn, M.J.; Rijsdijk, S.A. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: Prior research has identified individual characteristics that distinguish business owners from non-business owners. We tested our contention that not every successful business owner can be characterized by such typical “entrepreneurial†characteristics. Multiple Analysis of Variance (MANOVA) on a unique dataset of 194 business owners in the hospitality industry revealed that several individual characteristics discriminated between entrepreneurs and small business owners. Entrepreneurs possessed higher levels of independence, tolerance of ambiguity, risk-taking propensity, innovativeness, and leadership qualities, but not of market orientation and self-efficacy. We conclude that “entrepreneurial†characteristics identified in the literature may be useful predicting a specific type of business ownership. However, other criteria need to be developed in order to describe other groups of business owners operating in the service industry.
    Keywords: business success;entrepreneurship;small business owners;job performance;personality characteristics
    Date: 2008–11–11
  15. By: Varghese, Shalet K.; Manjunatha, A.V.; Poornima, K.N.; Akarsha, B.M.; Rashmi, N.; Tejaswi, P.B.; Saikumar, B.C.; Jeevarani, A.K.; Accavva, M.S.; Amjath Babu, T.S.; Suneetha, M.S.; Unnikrishnan, P.M.; Deshpande, R.S.; Nagaraj, N.; Chandrashekar, H.; Mahadev, G. Bhat; Chengappa, P.G.; Mundinamani, S.M.; Shanmugam, T.R.; Chandrakanth, M.G.
    Abstract: Conceptual development in the theory of externalities have opened up several policy options for their internalization including payment towards environmental services. Hence as externalities are social costs, accountability is crucial in increasing environmental awareness and for collective action through education and extension more so in developing countries. Here a modest attempt has been made to estimate externalities in water, forests and environment with field data from peninsular India to refl ect on the economic perception of externalities by farmers and users of environment for the consideration of policy makers to devise institutions for payment towards environmental services. The methodology largely used here in estimation / valuation of externalities is by considering €طith €Ӡ without€٠situations (including €آefore €Ӡafter€٠in some cases) akin to €ذroject valuation€ٮ Studies cover empirical estimation of externalities inter alia due to over extraction of groundwater , sand mining, watershed development, conservation of forests, sacred groves, cultivation of organic coffee, use of medicinal plants as alternate medicines and the annual values presented are in 2008 prices. The negative externality due to sand mining 24 ‚̠per acre, that due to distillery effluent pollution is 34 ‚̠per acre. The positive externality due to watershed program is around 51 ‚̠per acre, and that due to rehabilitation of irrigation tanks is 26 ‚̠per acre. The positive externality due to cultivation of shade coffee is 9 ‚̠per acre and that due to forest conservation 27 ‚̠per acre. The positive externality due to sacred grove conservation was 12 ‚̠per family. The impact of forest conservation on Non timber forest products was 88 ‚̠/ per tribal household. The positive externality due to use of medicinal plants as alternate medicine is equal to 35 ‚̠ per patient suffering from osteo-arthritis and 19 ‚̠per patient suffering from peptic-ulcer. While these estimates are not sacro sanct as the methodologies for valuation of externalities are subject to further review and improvement, they however serve as initial indicators of spillovers. And they signal possibilities for consideration of policy makers for devising alternate institutions for potential payment towards environmental services.
    Keywords: Externalities, Environmental services, Sustainable development, Resource /Energy Economics and Policy,
    Date: 2008

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