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on Tourism Economics |
| By: | Lorenzo Masiero (Institute for Economic Research (IRE), Faculty of Economics, University of Lugano, Switzerland); Juan L. Nicolau (Dpt. of Financial Economics, Accounting and Marketing, Faculty of Economics, University of Alicante, Spain) |
| Abstract: | Literature shows evidence that there is a marked heterogeneity in price responses to tourism products, leading to a great variety of tourist sensitivities to price. It means that the role price plays is complex and, particularly challenging is that its effect is not unambiguous, thereby dismissing the idea that demand for tourism products and tourist activities is always that of ordinary goods. The objective of this article is to identify and explain, as a novelty for the tourism industry, price sensitivities to tourism activities -individual by individual-. The operative formalization follows a Mixed Logit Model to estimate the individual sensitivities to price and then, a regression analysis to detect their determinants. The empirical application finds that motivations -influenced by age- and length of stay -with a non-linear effect- are explanatory factors of the tourists' price sensitivity to activities. |
| Keywords: | tourism activities, response to prices, market heterogeneity, tourist choice |
| JEL: | C25 L83 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:lug:wpaper:1101&r=tur |
| By: | Rafael Romeu; Andrew M. Wolfe |
| Abstract: | This study measures the impact of changing economic conditions in OECD countries on tourist arrivals to countries/destinations in Latin America and the Caribbean. A model of utility maximization across labor, consumption of goods and services at home, and consumption of tourism services across monopolistically competitive destinations abroad is presented. The model yields estimable equations arrivals as a function of OECD economic conditions and the elasticity of substitution across tourist destinations. Estimates suggest median tourism arrivals decline by at least three to five percent in response to a one percent increase in OECD unemployment, even after controlling for declines in OECD consumption and output gaps. Arrivals to individual destination are driven by differing exposure to OECD country groups sharing similar business cycle characteristics. Estimates of the elasticity of substitution suggest that tourism demand is highly price sensitive, and that a variety of costs to delivering tourism services drive market share losses in uncompetitive destinations. One recent cost change, the 2009 easing of restrictions on U.S. travel to Cuba, supported a small (countercyclical) boost to Cuba’s arrivals of U.S. non-family travel, as well as a pre-existing surge in family travel (of Cuban origin). Despite the US becoming Cuba’s second highest arrival source, Cuban policymakers have significant scope for lowering the relatively high costs of family travel from the United States. |
| Keywords: | Business cycles , Caribbean , Cuba , Demand , Developed countries , Economic models , Economic policy , Economic recession , Latin America , OECD , Spillovers , Tourism , Travel , United States , |
| Date: | 2011–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:11/32&r=tur |
| By: | Lorenzo Masiero (Institute for Economic Research (IRE), Faculty of Economics, University of Lugano, Switzerland); Juan L. Nicolau (Dpt. of Financial Economics, Accounting and Marketing, Faculty of Economics, University of Alicante, Spain) |
| Abstract: | This article builds on the double role of the effect of prices on the choice of tourism activities: not only is it the only component of a destination marketing strategy that represents income but also a determinant factor in tourist choice. On this account, identifying patterns of tourists with different degrees of sensitivities to prices would help them design an appropriate bundle of activities and have a clear definition of the segment the destination should try to attract. Accordingly, the objective of this paper is to find tourist segments from individual price sensitivities to activities. The results show that, although price has a dissuasive influence on the choice of activities it shows a differentiated effect; this heterogeneous responsiveness to price supports the use of this variable as a segmentation criterion. In the empirical application four segments are found with significantly different price sensitivities. |
| Keywords: | individual price sensitivity, tourism activities, tourist choice, segmentation strategy |
| JEL: | C25 L83 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:lug:wpaper:1102&r=tur |
| By: | Samà, Danilo |
| Abstract: | Since its origin, ecotourism development has been at the centre of controversial and heated debates within the environmental and scientific society. On one hand, it has been considered as a model of responsible and sustainable tourism with the capacity to guarantee the conservation of the current biodiversity level and cultural identity, to educate the tourists about preservation and to improve the economic activity and the standard of living of the populations affected. On the other hand, it has been criticized for actually being a mere instrument in the hands of capitalist and western firms to commercially exploit the natural resources available in the less developed countries. Thus, are the ecotourism projects more likely to be profitable and successful in territories where the common resources are controlled by the state or managed by private firms? Considered the most frequent and spontaneous solution noticed in the ordinary daily life of the emerging countries, meaning natural resources owned communally by local institutions, does ecotourism impede or reinforce this management function of coordinating and controlling? The empirical researches conducted in literature tried to answer to some of the above-mentioned questions and offered the opportunity for a Law and Economics assessment of the problem related to the common-pool resources. |
| Keywords: | Common-Pool Resources; Commons Management; Development; Ecology; Environment; Governance; Property Rights; Sustainability; Tragedy of the Commons |
| JEL: | K32 K11 Q57 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:28978&r=tur |