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on Tourism Economics |
| By: | J. Edward Taylor |
| Abstract: | The purpose of this guideline is to make practitioners aware of simulation approaches for the evaluation of tourism projects. Simulation approaches are particularly useful when experimental or economic approaches for project evaluation are not feasible. For example, it usually is not possible to roll out a tourism-promotion program for a randomly chosen "treatment group" while excluding the program's benefits for a "control group" at the tourist destination. The guideline explains why a simulation approach is useful for tourism impact analysis, what a simulation model for the economic analysis of tourism impacts looks like, and data requirements. With the help of an illustrative two-island model, the guideline shows how to construct different kinds of simulation models and how to use simulations to quantify the costs and benefits of tourism and tourism projects. The guideline concludes by discussing some specific IDB projects in which this methodology has been used for tourism impact analysis. The primary goal of this paper is to make development practitioners aware of simulation approaches for tourism impact analysis and of how to integrate these approaches into their project proposals, budgets, and terms of reference for expert consultants. |
| Keywords: | Environment & Natural Resources :: Sustainable Tourism, Economics :: Economic Development & Growth |
| JEL: | C81 L83 O12 O18 O22 R11 R58 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:37478&r=tur |
| By: | Scarpa, Riccardo; Notaro, Sandra; Raffaelli, Roberta; Louviere, Jordan |
| Keywords: | Resource /Energy Economics and Policy, |
| Date: | 2011–09–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:115990&r=tur |
| By: | Murray Simpson; Daniel Scott; Ulric Trotz |
| Abstract: | In this technical note, the authors present the effects of climate change on tourism development in the Caribbean, focusing on sea level rise and approaches to sustainability managing climate change impacts. For government and business decision makers in the tourism sector, climate change is a new strategic reality. Increasingly, institutional investors, banks, and insurance companies seek information on the material risks associated with climate change - driven by regulations at national and international levels, physical impacts on business, and the indirect consequences of regulation on business trends, such as changes in the demands for goods and services. |
| Keywords: | Environment & Natural Resources :: Climate Change, Environment & Natural Resources :: Sustainable Tourism, IDB-TN-238 |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:35758&r=tur |
| By: | Eric de Noronha Vaz (Universidade Nova de Lisboa); Peter Nijkamp (VU University Amsterdam); Marco Painho (Universidade NOVA de Lisboa); Mario Gaetano (Universidade NOVA de Lisboa) |
| Abstract: | The Algarve region in Portugal is often considered as one of the most appealing regions for tourism in the country. Its attractive location and moderate climate have since the mid-1960s brought increasing economic prosperity. As a result of the development of mass tourism, available land-use resources were widely exploited to create an integrated tourist industry. This region has shown an increasing loss of ecosystems resulting from the expansion of urban areas. This has also been accompanied by a significant abandonment of rural areas and hinterlands, leading to loss of agriculture and other rural activities. Clearly, urban growth needs considerable attention in the context of sustainable development, as often peri-urban areas with fragile ecosystems are becoming increasingly vulnerable. This paper aims to develop and apply key tools to quantify the changes of land use and how this affects the regional spatial scope by using multi-temporal inventorying an d accounting of land-use change matrices. Using Cellular Automata and a combined interpretation of CORINE Land Cover Data, it converges into a qualitative to quantitative interpretation of land use change by means of Multi-Criteria Evaluation. Finally, our analysis to identify the scenario with the best fit, based on the evolution of the actual 2006 land cover, enabled us to build a future urban growth model for 2020 which was quantitatively assessed. The outcome suggests a picture of continuing growth for the region of the Algarve within the framework of current policies and regressive spatial trends. |
| Keywords: | Urban growth; Algarve; CORINE Land Cover; Scenario modelling |
| JEL: | R11 R14 C50 |
| Date: | 2011–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:uvatin:20110142&r=tur |
| By: | Gerard Alleng |
| Abstract: | This presentation discusses the cost of impacts of climate change on the Caribbean. The response of adaptation will need to be applied towards an integral strategy to build on disaster risk reduction best practices and climate risk management. The response of the IDB to the climate change needs of member countries will need to include the use of financial instruments, the development of knowledge products, and the mainstreaming of climate change into the operations of the Bank. |
| Keywords: | Environment & Natural Resources :: Climate Change, Energy & Mining :: Renewable Energy, Environment & Natural Resources :: Sustainable Tourism, climate change, sustainable tourism, disaster risk management, Caribbean, adaptation, mitigation technologies |
| Date: | 2011–02 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:39038&r=tur |
| By: | David Throsby et al (Macquarie University) |
| Abstract: | This research project on the valuation of cultural heritage is developing a methodology for a quantitative valuation study of the use and non-use values of historic heritage places. The methodology developed in this project will provide a template for subsequent empirical applications to generate data of use in the formulation of heritage policies and programs. The initial stages in reaching this larger objective have involved determining how historic heritage places are to be categorised for measurement, establishing the process by which heritage attributes will be determined for valuation, and developing and trialling an effective measurement framework. The principal techniques being developed for valuation assessment in the project are derived from choice-modelling (CM) and contingent-valuation methods (CVM). A particular focus of the project is on the systematic integration of cultural and economic value assessments within a consistent theoretical framework, reflecting the need for an economic perspective on the significance criteria currently in use in heritage policy in Australia. |
| Date: | 2010–11 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1085&r=tur |
| By: | Cirer-Costa, Joan Carles |
| Abstract: | Ibiza, one the world’s major tourist destinations, necessarily welcomes visitors from multiple family environments and socioeconomic condition. Such multi-faceted demand is met by a broad range of accommodation options, largely varying in type and category. Now, by analyzing the effect of this diversity, we may conclude that the hospitality infrastructure adopts a hierarchical spatial structure, characterized by the presence of a few, large scale sub-destinations of unspecialized nature, very similar indeed to the global destination (self-similar fractal), and of many smaller sites that cater to specific demand segments complementary to the previous ones. |
| Keywords: | Hotels; Geography; fractals; Ibiza |
| JEL: | R12 L83 R14 |
| Date: | 2011–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:33855&r=tur |
| By: | Consmuller, Nicola; Beckmann, Volker; Petrick, Martin |
| Abstract: | Since the end of the quasi-moratorium on genetically modified organisms (GMO) in the European Union in 2004, the establishment of GMO-free zones has become an EU wide phenomenon. In contrast to other European countries, Germany follows the concept of cooperative GMO-free zones where neighbouring farmers contractually refrain from GMO cultivation. In this article, we address the question which underlying factors could account for the establishment of cooperative GMO-free zones in Germany. Drawing on the existing literature on spatial agglomeration of different farming systems and the establishment of GMO-free zones, we provide the first systematic study on driving factors for the regional formation of GMO-free zones in Germany. The empirical analysis is based on a unique data set at the federal states level for the years 2004 to 2007. We show that infestation rates with the European Corn Borer, imminent Bt maize cultivation in the near vicinity and the number of arriving tourists mainly account for the establishment of cooperative GMO-free zones. This finding is consistent with the view that it is more the overall rejection of agro-biotechnology by broad strata of the population, including stakeholders in tourism and environmental protection, than economic benefits at the farm level which make German regions establish GMO-free zones. |
| Keywords: | Genetically modified organisms (GMO), GMO-free zone, econometric analysis, Germany, Agribusiness, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:gewi11:114493&r=tur |
| By: | Lankia, Tuija; Huhtala, Anni |
| Abstract: | Although spending time in a summer home is a popular leisure activity in many developed countries, little is known about the welfare impacts of such recreation in monetary terms. We use data from Finland to provide first estimates of the extent of the recreation benefits obtained from visits to second homes. Special emphasis is placed on how environmental attributes of second homes, such as the presence of algae, the availability of a beach, and electricity, influence the recreation value of visits. The impacts are valued through revealed preferences using the travel cost method. We estimate the recreation value to be about EUR 170 â 205 per trip if a summer home is electrified, if a beach is available and if algae do not prevent aquatic recreation. The aggregate nonmarket benefits of the use of the current summer home stock are considerable â about EUR 500 million per annum. The presence of algae that prevent aquatic recreation decreases the value per trip by 40 percent, and the lack of a beach reduces it by 45 percent; electrification increases the value by 3â5 percent. These impacts should be balanced against the social costs of second homes when designing environmental policies on leisure-time housing. |
| Keywords: | Consumer/Household Economics, Environmental Economics and Policy, Resource /Energy Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114405&r=tur |
| By: | Mkwara, Lena; Marsh, Dan |
| Abstract: | Trout angling is one of the most popular water-based recreational activities in the Rotorua Lakes. Despite the high demand for trout angling and other recreational purposes, water quality in some of these lakes has been declining over the past decades and initiatives to try to restore the lakes are underway. To compliment these efforts, this study uses the travel cost random utility models to explore how changes in water quality would impact upon anglerâs choice of fishing destinations. The welfare impacts due to water quality changes and possible lake closures are also explored. These findings highlight the importance of discrete choice random utility models as a policy decision making tool for recreational-based natural resource managers in New Zealand. Additionally, this study represents one of the unique cases in travel cost random utility applications that accounts fully for unobserved site effects. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar11:115514&r=tur |
| By: | Phillips, Yvonne |
| Abstract: | A choice experiment was undertaken at Buffalo beach, Whitianga, in order to investigate beach visitorsâ preferences for various coastal erosion management options. Constructing rock seawalls is a common response to coastal erosion but seawalls can negatively affect visual amenity, biodiversity and recreational values. The choice experiment results from this study show that the average visitor would be willing to pay $20 per year to remove an existing rock wall at either end of Buffalo beach. Visitors place high value on useable sandy beaches and reserve areas behind the beach. A latent class analysis reveals there are distinct sub-groups with varying preferences for beach characteristics. This paper presents a model with separate classes for residents and visitors and the compensating variation estimates to calculate the overall welfare effect for three coastal management scenarios. |
| Keywords: | Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar11:115414&r=tur |
| By: | Quackenbush, Austin; Premkumar, Deepak; Artz, Georgeanne M.; Orazem, Peter |
| Abstract: | The philosophy of fiscal federalism presumes that local communities will under- or over-provide public amenities in the presence of externalities. We test this hypothesis using data from Vision Iowa, a state program which provided partial funding to communities to build tourist attractions. We find a 1% increase in investment increased county taxable retail sales 0.9%. The State’s return, from program-induced sales tax revenue, averaged 9.2% annually. Local communities’ returns averaged 0.9% and we find a significant increase in surrounding areas’ sales. This suggests that without state subsidies, communities would undersupply public amenities aimed at attracting visitors. |
| Keywords: | fiscal federalism; local public goods; subsidy; externality; spillover; amenity; retail sales |
| JEL: | H2 H4 H7 |
| Date: | 2011–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:34375&r=tur |
| By: | Robert Gillespie (Gillespie Economics, a resource and environmental economics consultancy practice); Jeff Bennett (Crawford School of Economics and Government, The Australian National University) |
| Abstract: | Australian governments are committed to the expansion of marine protected areas (MPAs) in Australian waters and have already established over 200 MPAs. However, this policy direction has a range of costs and benefits for the community which have largely remained unquantified. One of the main benefits of establishing MPAs are the non use values that the community for the protection of marine biodiversity. This study uses a dichotomous choice contingent valuation format with follow-up open-ended willingness to pay question to estimate these non use values for the establishment of MPAs in South-west Marine Region of Australia. It was found that on average Australian households would be WTP $104 for the establishment of MPAs that cover 10% of the South-west Marine Region. Aggregating this mean WTP estimate to 50% of the population of Australian households gives an aggregate WTP of $400M. However, whether the establishment of MPAs in the South-west Marine Region is economically efficient requires a consideration of all the potential costs and benefits. Other relevant costs and benefits for inclusion in a benefit cost analysis would include those associated with displacement of commercial and non-commercial uses, additional planning, compliance and monitoring costs as well as any predicted increases in commercial and non-commercial use values. If the net costs of establishing MPA over 10% of the South-west Marine Region are less than $400M, then the non-use benefits of establishing MPAs would exceed the other net costs and it would be considered to be economically efficient and desirable from a community welfare perspective. Given the difficulties of estimating precise WTP values from dichotomous choice data, any BCA of MPAs in the South-west Marine Region, incorporating the results of this study, should undertake sensitivity testing that includes the range of values reported including dichotomous choice and openended means to determine the robustness of BCA results to variations in the welfare estimate. |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:1083&r=tur |
| By: | Robert Gillespie (Gillespie Economics, a resource and environmental economics consultancy practice); Jeff Bennett (Crawford School of Economics and Government, The Australian National University) |
| Abstract: | Australian governments are committed to the expansion of marine protected areas (MPAs) in Australian waters and have already established over 200 MPAs. However, this policy direction has a range of costs and benefits for the community which have largely remained unquantified. One of the main benefits of establishing MPAs are the non use values that the community for the protection of marine biodiversity. This study uses a dichotomous choice contingent valuation format with follow-up open-ended willingness to pay question to estimate these non use values for the establishment of MPAs in South-west Marine Region of Australia. It was found that on average Australian households would be WTP $104 for the establishment of MPAs that cover 10% of the South-west Marine Region. Aggregating this mean WTP estimate to 50% of the population of Australian households gives an aggregate WTP of $400M. However, whether the establishment of MPAs in the South-west Marine Region is economically efficient requires a consideration of all the potential costs and benefits. Other relevant costs and benefits for inclusion in a benefit cost analysis would include those associated with displacement of commercial and non-commercial uses, additional planning, compliance and monitoring costs as well as any predicted increases in commercial and non-commercial use values.If the net costs of establishing MPA over 10% of the South-west Marine Region are less than $400M, then the non-use benefits of establishing MPAs would exceed the other net costs and it would be considered to be economically efficient and desirable from a community welfare perspective. Given the difficulties of estimating precise WTP values from dichotomous choice data, any BCA of MPAs in the South-west Marine Region, incorporating the results of this study, should undertake sensitivity testing that includes the range of values reported including dichotomous choice and openended means to determine the robustness of BCA results to variations in the welfare estimate. |
| Date: | 2011–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:eenhrr:10103&r=tur |
| By: | Kerr, G.N.; Latham, N. |
| Abstract: | The relative values of New Zealand commercial and recreational marine fishing are unknown. Value transfer is applied to assess the likely value of inshore marine recreational fishing. The few relevant studies available report widely differing estimates of value. However, there is sufficient evidence to indicate that the value of recreational fishing is of the same order of magnitude as commercial fishing. |
| Keywords: | Value transfer, recreational fishing, Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nzar11:115408&r=tur |
| By: | Liljenstolpe, Carolina |
| Keywords: | Community/Rural/Urban Development, Environmental Economics and Policy, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114383&r=tur |
| By: | Voltaire, Louinord; Nassiri, Abdelhak; Bailly, Denis; Boncoeur, Jean |
| Abstract: | In this paper, we develop an empirical test of consistency in contingent willingness to pay (WTP) responses, which is based on the following a priori expectation. In economics, when an individual considers paying for public goods, his decision to pay, and his WTP are based on utility-maximising behaviour. Accordingly, supposing other factors are identical, if individual A expresses greater interest in paying for public goods in general than individual B, that is because A receives more benefits from the use and/or the non-use of these goods than B. Continuing with this logic, if both individuals are asked about their WTP for a precise public good, A should logically be more likely to pay and should be willing to pay more than B. Thus, the test consists in measuring the degree to which people are likely to give money for public goods in general, and including it as a covariate in WTP models for the specific public good. If this covariate is significantly positive, then WTP responses are considered consistent. If this is not the case, then future research might focus on motives behind inconsistent WTP responses. To assess the robustness of the test, we consider 3 situations 1) the covariate is exogenous 2) it is endogenous and uncorrelated with the choice to pay or not for the specific good 3) it is endogenous and correlated with this choice. Using a contingent valuation study estimating touristsâ willingness to pay for future nature reserves in the Gulf of Morbihan, we find that WTP responses are consistent in all situations considered. |
| Keywords: | contingent valuation, consistency, endogeneity, Consumer/Household Economics, Resource /Energy Economics and Policy, C24, D12, Q26, |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae11:114378&r=tur |