nep-tur New Economics Papers
on Tourism Economics
Issue of 2011‒11‒28
eight papers chosen by
Antonello Scorcu
University of Bologna

  1. An exploratory assessment of tourism sustainability in Croatian coastal destinations By Ivan Kožić; Josip Mikulić
  3. Migration and Tourist Flows By Nuno, Carlos Leitão; Muhammad, Shahbaz
  5. Demand for Cultural Heritage. By Victoria Ateca-Amestoy
  7. Airline Pricing under Different Market Conditions: Evidence from European Low-Cost Carriers By Volodymyr Bilotkach; Alberto A. Gaggero; Claudio A. Piga
  8. Low Cost Carriers and Airports Performance: Empirical Evidence from a Panel of UK Airports By Anna Bottasso; Maurizio Conti; Claudio A. Piga

  1. By: Ivan Kožić; Josip Mikulić
    Abstract: This paper applies an indicator system for evaluating the sustainability of tourism in Croatian coastal tourist destinations. The applied indicator system is based on the guidelines provided by the World Tourism Organization, EUROSTAT, the Organization for Economic Co-operation and Development, and the European Union Tourism Sustainability Group. To simplify measurement and facilitate comparative analyses between analyzed destinations, synthetic indicators are constructed based on normalized indicator data and multivariate analysis-based indicator weights. The results in this paper are a first, though still rough, quantification of tourism sustainability in Croatia.
    Keywords: tourism, sustainability, composite indicator, index, Croatia
    JEL: Q01 Q26 Q56
    Date: 2011–06–07
  2. By: Tomaso Pompili; Michela Martinoia
    Abstract: Empirical analyses highlight local structural features (territorial capital) as constraints on regional growth and interregional convergence processes, but scant attention is devoted to traditional localised resources and specifically the natural and cultural heritage. However, only the application of know-how embodied in human capital to resources provides value. Specifically, heritage becomes economically relevant through human capital acting via tourist, recreational and cultural activities. Although, because of its service exporting nature, tourism contributes to economic growth and job creation similarly to manufacturing, the literature concerned manufacturing and rarely studied tourism or extended results to it. Besides, in Europe tourism is the market activity most favouring policentricity, territorial cohesion and equity. On the other hand, heritage valorisation responding to tourist service demand has adverse effects on development (congestion) and environmental quality / resource consumption (heritage dissipation); these partly offset strictly economic benefits and over time weaken the destination’s pull, hence its value and its population’s welfare. Our goal is to analyse the role of territorial capital, and specifically of intangibles such as natural and cultural capital, in regional growth processes and in local response processes to exogenous crises, by building a national database of territorial capital in Italian provinces, containing synthetic endowment indicators for natural and cultural heritage, human capital, and structure and distribution of tourism and leisure industries. Our methodology includes the application of multivariate analyses, with state-of-the-art techniques. We use available European and national databases, augmented by ad hoc integrations if and when needed. The study area is Italy; the optimal tier is NUTS3, i.e. provinces, in Italy. The time reference is 1990-2010, to ensure a structural long-term approach. The paper is organised in the following way: - an initial section outlines the original data on 103 provinces, providing 33 proxy indicators of which major univariate statistics and correlations are explored; - a first main section reduces indicators into 5 synthetic indicators, by means of factor analysis; - a second main section reduces provinces into 11 ideal types, by means of cluster analysis; - a final section compares and interprets results, also with reference to 2007-2009 economic dynamics.
    Date: 2011–09
  3. By: Nuno, Carlos Leitão; Muhammad, Shahbaz
    Abstract: This study considers the relationship between immigration and Portuguese tourism demand for the period 1995-2008, using a dynamic panel data approach. The findings indicate that Portuguese tourism increased significantly during the period in accordance with the values expected for a developed country. The regression results show that income, shock of immigration, population, and geographical distance between Portugal and countries of origin are the main determinants of Portuguese tourism.
    Keywords: Tourism demand; panel data; immigration and Portugal
    JEL: F22
    Date: 2011–11–09
  4. By: Saiful Bahri Mohd Kamal (Faculty of Hotel and Tourism Management, Universiti Teknologi MARA, Pulau Pinang); Melinda Yunos (Department of Business Management, Universiti Teknologi MARA Pulau, Pinang)
    Abstract: The purpose of this paper is to analyse the travel characteristics as well as tourism attributes that are perceived as important amid repeat travellers in Penang, paying attention on comparison between first time and repeat travellers among international tourists. A comprehensive 55-item survey was developed that solicited data in four major areas: respondents’ demographics, travel behaviour, perceived activities of importance, as well as evaluation on the level of satisfaction. The establishment of holiday pattern will lead to possible demand among the samples of study. This information is regarded as valuable resource that could be used by those in tourism planning to better determine the most preferred activities of these repeat travellers and how destination managers and developers might better attract and accommodate them. Suggestion will be made based on the findings to identify the marketing strategies, resource allocation as well as operational changes that could be effectively implemented out of both first time and repeat travellers current holiday behaviour within the study area
    Keywords: Travel behaviour, travel demand, repeat travellers, international tourist, Penang
    JEL: M0
    Date: 2011–10
  5. By: Victoria Ateca-Amestoy (University of the Basque Country)
    Keywords: cultural economics, demand, cultural heritage, participation in the arts, SPPA2008
    JEL: Z11 D12
    Date: 2011–11–18
  6. By: Shahrin Saad (College of Business, Universiti Utara Malaysia, 06010, Sintok Kedah, Malaysia); Khulida Kirana Yahya; Faizuniah Pangil
    Abstract: Since hotel industry is major contributor to the growth of Tourism Industry in Malaysia, it is vital to take into consideration of issues that are being carried by the industry. For example the high turnover of employee in hotel due to poor strategy conducted by hotels’ management. This paper explores the new strategy measurement which is the integrated business strategy dimensions in fitting the hotel industry due to the scarce of hospitality strategy at present. The new strategy is developed from the integration of four business strategy scholars. The new strategy dimensions have been renamed and items of the strategies have been tested through a pilot study. In the pilot study, a questionnaire of 29 items to measure integrated business strategy were formed. It is hoped that this measurement tool will contribute to the setting of a foundation to future hospitality strategy development and management of hotels in Malaysia
    Keywords: Hospitality strategy, business strategy, integrated business strategy and hotel
    JEL: M0
    Date: 2011–10
  7. By: Volodymyr Bilotkach (University of California, Irvine); Alberto A. Gaggero (University of Pavia); Claudio A. Piga (Loughborough University; RCEA)
    Abstract: Traditional theories of airline pricing maintain that fares monotonically increase as fewer seats remain available on a flight. A fortiori, this implies a monotonically increasing temporal profile of fares. In this paper, we exploit the presence of drops in offered fares over time as an indicator of an active yield management intervention by two main European Low-Cost Carriers observed daily during the period June 2002 - June 2003. Our results indicate that yield management is effective in raising a flight's load factor. Furthermore, yield management interventions are more intense, and generate a stronger impact, on more competitive routes: one possible interpretation is that a reduction in competitive pressure allows the carriers to adopt a more standardized approach to pricing. Similarly, we find that yield management interventions are more effective in raising the load factor on routes where the customer mix is more heterogenous (i.e., it includes passengers traveling for leisure, business and for family matters). On markets with homogeneous customer base, no robust yield management effect was observed.
    Keywords: Easyjet, Intertemporal Pricing, Panel Data, Ryanair, Yield Management
    JEL: L11 L93
    Date: 2011–11
  8. By: Anna Bottasso (University of Genoa); Maurizio Conti (University of Genoa); Claudio A. Piga (Loughborough University; RCEA)
    Abstract: During the last decade, the proliferation of Low Cost Carriers and the related huge increase in traffic has been the most visible effect of the deregulation of the airline market in Europe. Little attention has been paid to how airports were affected by the changes in the new institutional environment. In this study we model the total factor productivity (TFP) for a panel of the UK largest airports over the 2002-2005 period and investigate whether the presence of LCCs has some impact on airports' TFP. Empirical results are consistent with the hypothesis that conspicuous entry of LCCs on European markets has impacted positively on the vertical chain by facilitating airports' productivity improvements. This result is robust to reverse causality issues associated with the possibility that most efficient airports are those that are more likely to attract LCCs. Different possible arguments may explain our results: traffic increases brought about by LCCs for a given installed capacity might have generated higher TFP; more efficient organizational models might have been adopted to meet LCCs operational requirements (short turnaround times); cost reductions might have been realized in order to lower charges and attract LCCs; competition from a larger number of airports induced by LCCs' wider catchment areas (with respect to full service airlines) might have exerted further pressure toward TFP improvements.
    Keywords: Total Factor Productivity, Airports, LCCs
    Date: 2011–11

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