nep-tur New Economics Papers
on Tourism Economics
Issue of 2013‒10‒02
seven papers chosen by
Laura Vici
Universita' di Bologna

  1. Poverty and local linkages in the tourism value chain: a study of upland economies in China and India By Dev Nathan; Govind Kelkar; Yang Fuquan; Yu Yin
  2. Economic and social upgrading in tourism global production networks: findings from Uganda By Michelle Christian; Francis Mwaura
  3. International airline groups in Africa. By Piotr Niewiadomski
  4. Tourism overview: changing end markets and hyper competition By Michelle Christian; Dev Nathan
  5. The zero-fee tour: price competition and network downgrading in Chinese tourism By Dev Nathan; Yang Fuquan; Yu Yin
  6. Restructuring of post-crisis GPNs: tourism in Indonesia. By Girish Nanda; Keith Hargreaves
  7. On the cost of misperceived travel time variability By Xiao, Yu; Fukuda, Daisuke

  1. By: Dev Nathan; Govind Kelkar; Yang Fuquan; Yu Yin
    Abstract: Abstract The paper deals with the role of tourism in reducing poverty in upland economies. Taking cases from China and India, it explores the local segments of the tourism value chain, or the local linkages of tourism. In assessing the impact on poverty it looks at both the local share of tourist expenditure and the size of the tourism sector. Local benefits are looked at from the points of view of both women and men as service providers. The paper brings out the important role of tourism as a form of non-farm employment in reducing poverty in upland economies.
    Date: 2013
  2. By: Michelle Christian; Francis Mwaura
    Abstract: Abstract Over the last decade, Uganda has re-emerged as a global tourism destination after years of instability. The growth of Uganda’s tourism global production network, however, is slow and is characterized by a few elite firms and highly controlled travel through tightly coordinated distribution channels. Capturing the Gains research asked how and if economic upgrading in the tourism global production network was happening in Uganda, and if social upgrading followed, by exploring one tourism location: Murchison Falls National Park. The findings suggest that tourism firms pursued vertical and horizontal economic upgrading strategies, but the social upgrading outcomes were mixed. Social upgrading for permanent workers followed economic upgrading for hotels and tourism service providers in Murchison Falls National Park, but not for community members outside the Park. Several aspects, such as the role of Uganda Wildlife Authority concessions, distribution access, and local labour market dynamics, are motivating factors in influencing upgrading dynamics.
    Date: 2013
  3. By: Piotr Niewiadomski
    Abstract: Abstract This paper contributes to the international research project ‘Capturing the Gains: Economic and Social Upgrading in Global Production Networks and Trade’. Its main aim is to analyse the operations of international airlines in Africa and assess the influence of the international aviation industry on the development of tourism in selected African states. Simultaneously, through an exploration of the different ways in which international airline groups can foster the development of the tourism sector in Africa, the paper informs the general understanding of the influence of tourism on regional development. Although in general terms the paper focuses on the whole of Africa, more detailed issues are analysed on the basis of South Africa, Kenya and Uganda.
    Date: 2013
  4. By: Michelle Christian; Dev Nathan
    Abstract: Abstract This overview of tourism research conducted by Capturing the Gains covers cases from Asia (China, Indonesia and India), and Africa (Kenya, South Africa and Uganda). The tourism value chain is outlined and changes in the relative roles of different agencies discussed. The paper analyses the changes in the composition of tourists in these countries and the resultant change in relative importance of national and international tour agencies. Our findings suggest that benefits from the growth of tourism are unevenly distributed, with the oligopolistic nature of the tour agencies and hyper-competition among service providers even resulting in some cases of below-cost provision of destination services. These commercial value chain dynamics have led to precarious employment arrangements. There is a synthesis of the nature of employment in tourism, with a large presence of own-account and other forms of informal employment. Ways of dealing with the oligopolistic buyers’ market are discussed, including branding and organization by destination service providers. Methods of improving the gains of women and other workers are also addressed, such as the role of workers’ organization and state-supported social security measures.
    Date: 2013
  5. By: Dev Nathan; Yang Fuquan; Yu Yin
    Abstract: Abstract This paper deals with the impact of competition on the tourism network in China. It identifies the supply and demand conditions among service providers, tour operators and tourists that have led to the zero-fee tour and then deals with the impact of this intense price competition in terms of the reduction in product quality and degrading of the whole network. The paper also deals with various attempts by local governments and others to curb the zero-fee tour. It points out that price restrictions have worked in a destination that has established a brand value and, thus, has become a differentiated product. In concluding, the paper deals with the supply reductions that are needed to reduce price competition in various segments of the tourism network.
    Date: 2013
  6. By: Girish Nanda; Keith Hargreaves
    Abstract: Abstract Global production network (GPN) maps are not static, and both incremental and major changes can and do occur. This study examines one potentially game-changing scenario, that is, the effect of an external shock. The most damaging of these are severe shocks brought about by economic or terrorist events. Three types of shocks relevant in the case studies of Bali and Sulawesi presented here were the devastating Bali bombs, which fundamentally changed the GPN for low-end mass tourism of Australian origin; the financial crises of 1998 and 2008, which sucked the lifeblood out of the market; and ethnic tensions in Sulawesi, which scared away virtually all tourism from Sulawesi. This paper attempts to show that there can be significant differences in these maps, ‘pre-’ and ‘post-shock’. The paper also discusses the nature of coping by workers in tourism as employment and incomes fell.
    Date: 2013
  7. By: Xiao, Yu; Fukuda, Daisuke
    Abstract: Recent studies show that traveler’s scheduling preferences compose a willingness-to-pay function directly corresponding to aggregate measurement of travel time variability under some assumptions. This property makes valuation on travel time variability transferable from context to context, which is ideal for extensive policy evaluation. However, if respondents do not exactly maximizing expected utility as assumed, such transferability might not hold because two types of potential errors: (i) scheduling preference elicited from stated preference experiment involving risk might be biased due to misspecification and (ii) ignoring the cost of misperceiving travel time distribution might result in undervaluation. To find out to what extent these errors matter, we reformulate a general scheduling model under rank-dependent utility theory, and derive reduced-form expected cost functions of choosing suboptimal departure time under two special cases. We estimate these two models and calculate the empirical cost due to misperceived travel time variability. We find that (i) travelers are mostly pessimistic and thus tend to choose departure time too earlier to bring optimal cost, (ii) scheduling preference elicited from stated choice method could be quite biased if probability weight- ing is not considered and (iii) the extra cost of misperceiving travel time distribution contributes trivial amount to the discrepancy between scheduling model and its reduced form.
    Keywords: travel time variability, scheduling delay, departure time choice, rank-dependent utility
    JEL: D61 D81 R41
    Date: 2013–09–22

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