nep-tur New Economics Papers
on Tourism Economics
Issue of 2010‒08‒28
three papers chosen by
Antonello Scorcu
University of Bologna

  1. The 2010 World Cup High-Frequency Data Economics: Effects on International Awareness and (Self-Defeating) Tourism By Stan Du Plessis; Wolfgang Maennig
  2. Issues and Constrains in Manpower Supply in Indian Hospitality Industry By P. Srinivas Subbarao
  3. Royale with Cheese: The Effect of Globalization on the Variety of Goods By Matthew T. Cole; Ronald B. Davies

  1. By: Stan Du Plessis (Department of Economics, Faculty of Economic and Management Sciences, University of Stellenbosch); Wolfgang Maennig (Chair for Economic Policy, University of Hamburg)
    Abstract: Without a doubt, the 2010 World Cup of soccer in South Africa was a great experience for both soccer fans, who enjoyed a safe and efficiently-run tournament, and their South African hosts. The sporting and social spectacle was broadcast around the world and focused unprecedented media attention on South Africa. Despite the manifest success of the tournament, its short-term effects on international tourism, which are the nucleus of all other short-term positive effects on economic variables such as employment, income and taxes, have turned out to be of a much smaller magnitude than expected or even as reported during the tournament. This may be attributable to self-defeating prophecy effects. This study is a warning against the abuse of economic impact studies, especially those pertaining to major sporting events. It is also a call to use the “correct” arguments of measurable awareness effects and potential long-term development effects in discussing major sporting events. Methodologically, this study is innovative in its economic analysis of major sporting events because it (i) uses data from social networks and (ii) uses high-frequency daily data on tourism.
    Keywords: FIFA World Cup, Mega sporting events, Sport economics, Tourism, South Africa 2010, Self-defeating prophecies, Awareness, Google, Facebook, Social networks
    JEL: L83 R53 R58
    Date: 2010–08–15
  2. By: P. Srinivas Subbarao
    Abstract: 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. [W.P. No.2008-02-03]
    Keywords: skilled, trained, manpower, tourist destination, high-quality, hospitality
    Date: 2010
  3. By: Matthew T. Cole; Ronald B. Davies (University College Dublin; Institute for International Integration Studies, Trinity College Dublin)
    Abstract: The key result of the so-called “New Trade Theory” is that countries gain from falling trade costs by an increase in the number of varieties available to consumers. Though the number of varieties in a given country rises, it is also true that global variety decreases from increased competition wherein imported varieties drive out some local varieties. This second result is a major issue for anti-trade activists who criticize the move towards free trade as promoting homogenization” or “Americanization” of varieties across countries. We present a model of endogenous entry with heterogeneous firms which models this concern in two ways: a portion of a consumer’s income is spent overseas (i.e. tourism) and an existence value (a common tool in environmental economics where simply knowing that a species exists provides utility). Since lowering trade costs induces additional varieties to export and drives out some non-exported varieties, these modifications result in welfare losses not accounted for in the existing literature. Nevertheless, it is only through the existence value that welfare can fall as a result of declining trade barriers. Thus, for these criticisms of globalization to dominate, it must be that this loss in the existence value outweighs the direct benefits from consumption.
    Keywords: firm heterogeneity; tourism
    JEL: F12 F14
    Date: 2010–07

This nep-tur issue is ©2010 by Antonello Scorcu. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.