nep-tur New Economics Papers
on Tourism Economics
Issue of 2011‒03‒26
three papers chosen by
Antonello Scorcu
University of Bologna

  1. On the economic rationality of fluctuations in tourism frequentation at nature-based destination By Giannoni, Sauveur
  2. The Management of Uncertainty in Tourism: Strategic Paradoxes and Communication By Bouzon , Arlette; Devillard, Joëlle
  3. The Amenity Value of English Nature: A Hedonic Price Approach By Steve Gibbons; Susana Mourato; Guilherme Resende

  1. By: Giannoni, Sauveur
    Abstract: The aim of this paper is to answer a simple question: Are fluctuations, and especially temporary decline, in frequentation always harmful for the pro…t of a tourism destination? I propose a simple model for a nature-based destination, in which the willingness to pay of a tourist for the destination depends on the stock of natural assets, and I show using simulations that there exists a rational economic incentive to experience a decrease in frequentation for a while in order to let the stock of natural assets regenerates. This is an idea already emphasized by Greiner et al. (2001) and Kort et al.(2002). I show that anyway the optimal behavior of a pro…fit-maximizing representative tourism …firm would generally lead to a monotonic frequentation path. This apparent contradiction is due to the fact that the level of frequentation is not, in the real world, set at its optimal level. Yet it could be good news if at some point, when the stock of natural assets is low, frequentation declines for a while.
    Keywords: Tourism; Willingness to Pay; Fluctuations
    JEL: Q56 O13 L83
    Date: 2011
  2. By: Bouzon , Arlette; Devillard, Joëlle
    Abstract: The design of new tourism products necessarily enters into the realm of uncertainty. Such uncertainty concerns the product developed and its later use as much as the way the design project is conducted. It can be linked to events either within or outside the firm. It will be considered to be acceptable by the design team concerned as long as it remains within a field of tolerance (domain of performance, “margin for random effects”, etc.), with the risk relating to how to egress from that domain. The first section addresses the issue of uncertainty in design and concerns the developed product and its later use just as the way the design project is pursued. The second section focuses on decision-making and how the various risks that can affect the firm and its environment are taken into account.
    Keywords: Tourism; Innovation; Conception; Uncertainty; Communication; Decision
    JEL: O1 M1 L83
    Date: 2011–04–15
  3. By: Steve Gibbons; Susana Mourato; Guilherme Resende
    Abstract: Using a hedonic property value price approach, we estimate the amenity value associated with proximity to habitats, designated areas, domestic gardens and other natural amenities in England. There is a long tradition of studies looking at the effect of a wide range of environmental amenities and disamenities on property prices. But, to our knowledge, this is the first nationwide study of the value of proximity to a large number of natural amenities in England. We analysed 1 million housing transactions over 1996- 2008 and considered a large number of environmental characteristics. Results reveal that the effects of many of these environmental variables are highly statistically significant, and are quite large in economic magnitude. Gardens, green space and areas of water within the census ward all attract a considerable positive price premium. There is also a strong positive effect from freshwater and flood plain locations, broadleaved woodland, coniferous woodland and enclosed farmland. Increasing distance to natural amenities such as rivers, National parks and National Trust sites is unambiguously associated with a fall in house prices. Our preferred regression specifications control for unobserved labour market and other geographical factors using Travel to Work Area fixed effects, and the estimates are fairly insensitive to changes in specification and sample. This provides some reassurance that the hedonic price results provide a useful representation of the values attached to proximity to environmental amenities in England. Overall, we conclude that the house market in England reveals substantial amenity value attached to a number of habitats, designations, private gardens and local environmental amenities.
    Keywords: amenity value, hedonic price method (HPM), environmental amenities
    JEL: R11 R29
    Date: 2011–03

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