nep-tur New Economics Papers
on Tourism Economics
Issue of 2013‒11‒02
three papers chosen by
Laura Vici
Universita' di Bologna

  1. The Impact of China on Stock Returns and Volatility in the Taiwan Tourism Industry By Chang, C.L.; Hsu, H.K.; McAleer, M.J.
  2. Nautical Tourism, Carrying Capacity and Environmental Externality in the Lagoon of Marano and Grado By Francesco Silvestri; Stefano Ghinoi; Vincenzo Barone
  3. The Amazing Race to India: Prominence in Reality Television Affects Destination Image and Travel Intentions By T. TESSITORE; M. PANDELAERE; A. VAN KERCKHOVE

  1. By: Chang, C.L.; Hsu, H.K.; McAleer, M.J.
    Abstract: This paper investigates the stock returns and volatility size effects for firm performance in the Taiwan tourism industry, especially the impacts arising from the tourism policy reform that allowed mainland Chinese tourists to travel to Taiwan. Four conditional univariate GARCH models are used to estimate the volatility in the stock indexes for large and small firms in Taiwan. Daily data from 30 November 2001 to 27 February 2013 are used, which covers the period of Cross-Straits tension between China and Taiwan. The full sample period is divided into two subsamples, namely prior to and after the policy reform that encouraged Chinese tourists to Taiwan. The empirical findings confirm that there have been important changes in the volatility size effects for firm performance, regardless of firm size and estimation period. Furthermore, the risk premium reveals insignificant estimates in both time periods, while asymmetric effects are found to exist only for large firms after the policy reform. The empirical findings should be useful for financial managers and policy analysts as it provides insight into the magnitude of the volatility size effects for firm performance, how it can vary with firm size, the impacts arising from the industry policy reform, and how firm size is related to financial risk management strategy.
    Keywords: stock returns;firm size;asymmetry;conditional volatility models;tourism;volatility size effects;tourism policy reforms
    Date: 2013–08–01
  2. By: Francesco Silvestri (eco&eco Economia ed Ecologia Ltd. Bologna and Dept. of Economics and Marketing, University of Ferrara); Stefano Ghinoi (Dept of Statistics, Alma Mater Studiorum Bologna); Vincenzo Barone (eco&eco Economia ed Ecologia Ltd. Bologna)
    Abstract: Tourism and environmental preservation are often conflicting activities, mainly in areas such as coastal lagoons, where seaside mass-tourism comes into contact with a very sensitive ecological system. In this paper we deal with a classical problem of both environmental and tourism economics, the internalization of environmental costs of tourism, focusing on the nautical fruition of the Lagoon of Marano and Grado (North-Eastern Italy, Friuli Venezia Giulia Region). Using different instruments, both theoretical (Carrying Capacity framework, Polluter-Payer principle, Coase compensation) and empirical (Cluster analysis, Log-log regression, Forecasting model, cost and benefit calculation through actual market values), we get the result that a standard Coasian equilibrium (unit external cost equal to unit private benefit) doesn’t hold, and a higher coverage of the local berths endowment (i. e. a higher vessels transit in the Lagoon) is more effective for nature conservation than a tempered fruition. Another interesting result is that the best available solution to internalize environmental externality is a mixed one, comprehensive of a command and control rule (a speed-limit prescription), and a compensation scheme.
    Keywords: Tourism Carrying Capacity, Nature conservation, Externalities, Empirical studies
    JEL: Q01 Q26 Q57
    Date: 2013–09
    Abstract: Considering the increasing popularity of reality television shows, this research investigated the impact of a destination placement in reality television on tourism. Two experiments reveal that a reality show can change the image of the destination in which the show is set. This positively affects cognitive, affective and behavioral outcomes. Specifically, it changes perceptions in accordance with the depiction of the destination in the reality show, increases knowledge about the destination, favorably affects viewers’ attitude toward the destination, and even more importantly, increases the intention to travel to the destination. Our findings are of interest to destination marketing organizations; they inform them on how to promote touristic destinations
    Keywords: Product placement, reality television, perception, destination marketing
    Date: 2013–09

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