nep-tur New Economics Papers
on Tourism Economics
Issue of 2013‒09‒06
four papers chosen by
Laura Vici
Universita' di Bologna

  1. Incorporating the Influence of Latent Modal Preferences in Travel Demand Models By Vij, Akshay
  2. Conservation Fees in the Kgalagadi Transfrontier Park between Botswana and South Africa in the Presence of Land Restitution By Johane Dikgang and Edwin Muchapondwa
  3. The bidding paradox: why economists, consultants and politicians disagree on the economic effects of mega sports events but might agree on their attractiveness By Michiel de Nooij; Marcel van den Berg
  4. The bidding paradox: why rational politicians still want to bid for mega sports events By Michiel de Nooij; Marcel van den Berg

  1. By: Vij, Akshay
    Abstract: Latent modal preferences, or modality styles, are defined as behavioral predispositions towards a certain travel mode or set of travel modes that an individual habitually uses. They are reflective of higher-level orientations, or lifestyles, that are hypothesized to influence all dimensions of an individual’s travel and activity behavior. For example, in the context of travel mode choice different modality styles may be characterized by the set of travel modes that an individual might consider when deciding how to travel, her sensitivity, or lack thereof, to different level-of-service attributes of the transportation (and land use) system when making that decision, and the socioeconomic characteristics that predispose her one way or another. Travel demand models currently in practice assume that individuals are aware of the full range of alternatives at their disposal, and that a conscious choice is made based on a tradeoff between perceived costs and benefits associated with alternative attributes. Heterogeneity in the choice process is typically represented as systematic taste variation or random taste variation to incorporate both observable and unobservable differences in sensitivity to alternative attributes. Though such a representation is convenient from the standpoint of model estimation, it overlooks the effects of inertia, incomplete information and indifference that are reflective of more profound individual variations in lifestyles built around the use of different travel modes and their concurrent influence on all dimensions of individual and household travel and activity behavior.  The objectives of this dissertation are three-fold: (1) to develop a travel demand model framework that captures the influence of modality styles on multiple dimensions of individual and household travel and activity behavior; (2) to test that the framework is both methodologically flexible and empirically robust; and (3) to demonstrate the value of the framework to transportation policy and practice.
    Keywords: Engineering
    Date: 2013–08–01
    URL: http://d.repec.org/n?u=RePEc:cdl:uctcwp:qt7ng2z24q&r=tur
  2. By: Johane Dikgang and Edwin Muchapondwa
    Abstract: This paper estimates the visitation demand function for Kgalagadi Transfrontier Park (KTP) in order to determine the conservation fee to charge South African residents to maximise park revenue. We conducted contingent behavior experiments at KTP and three other national parks, which we assume are either substitutes or complements for visitors to KTP. Our random effects Tobit model shows that there is a wide variation in the own-price elasticities of demand between the parks but they are generally not elastic. The cross-price estimates indicate that there is limited substitutability in visitation demand among the four parks. The study uses the unitary elasticity rule to demonstrate that there is a possibility of raising conservation fees to revenue-maximising levels at KTP as well as the other parks, using methods such as a mandatory conservation fee increment or a community-bound voluntary donation above the regular conservation fee. Sharing conservation revenue with communities surrounding parks could demonstrate the link between ecotourism and local communities’ economic development, promote a positive view of land restitution involving national parks, help address South Africa’s heavily skewed distribution of income, and act as an incentive for the local communities to participate in conservation even more.
    Keywords: Contingent behavior, conservation fee, demand, land claim, national park
    Date: 2013
    URL: http://d.repec.org/n?u=RePEc:rza:wpaper:368&r=tur
  3. By: Michiel de Nooij; Marcel van den Berg
    Abstract: The ambition to host mega sports events is (or can be) perfectly justifiable with various arguments. The most persistently used argument is the supposed financial or direct economic gain for the host economy, of which the compelling body of evidence is discouraging. This implies that the justification for hosting should come from a different, broader economic angle. This paper provides a critical discussion of the myriad of economic and frequently intangible effects that could be put forward in the public debate preceding the submission of a bid. Paradoxically, most of these effects are not, or infrequently employed in public debates.
    Keywords: Bidding; mega sport events; Olympic games; economics; fun and pride
    JEL: D61 D72 H54 L83
    Date: 2013–08
    URL: http://d.repec.org/n?u=RePEc:use:tkiwps:1309&r=tur
  4. By: Michiel de Nooij; Marcel van den Berg
    Abstract: This paper discusses reasons why politicians still favor hosting mega events despite the discouraging evidence regarding their financial benefits: (1) early political enthusiasm, (2) tying side-projects to the bid to raise political support, (3) biased reading of history, (4) the winners curse, (5) redistribution and lobbying, (6) a media bias in favor of hosting and (7) boosting happiness and pride of residents. Bringing happiness to the people might be a valid reason for hosting a mega event, however, economists are yet insufficiently capable of capturing this effect. Moreover, alternative explanations for political support cannot be deemed invalid ex ante.
    Keywords: Bidding; Bidding; mega sport events; Olympic games; lobbying; happiness
    JEL: D61 D72 H54 L83
    Date: 2013–08
    URL: http://d.repec.org/n?u=RePEc:use:tkiwps:1308&r=tur

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