nep-tur New Economics Papers
on Tourism Economics
Issue of 2017‒04‒02
five papers chosen by
Laura Vici
Università di Bologna

  1. Reengineering knowledge for e-tourism and hospitality curricula By Fu, Jing; Kapiki, Soultana Tania
  2. Tourism territories in low density areas: The case of Naturtejo geopark in Portugal By de Almeida Ramos, George Manuel; Fernandes, João Luís Jesus
  3. The effect of tourism taxation: a synthetic control approach By B. Biagi; MG. Brandano; M. Pulina
  4. Monitoring tourism flows and destination management: Empirical evidence for Portugal By Jorge Andraz; Paulo Rodrigues
  5. Bringing Home the Gold? A Review of the Economic Impact of Hosting Mega-Events By Douglas Barrios; Stuart Russell; Matt Andrews

  1. By: Fu, Jing; Kapiki, Soultana Tania
    Abstract: E-tourism and hospitality represents the development of tourism and hospitality to integrate ICT tools and has significantly changed the industry over the last decade. In order to meet the new needs, knowledge service suppliers (i.e. the university) must meet the requirements and social developments of the tourism industry. The quality of e-tourism and hospitality curriculum depends largely on the education quality and its subsequent implementation. The research reveals that higher education is not currently meeting the needs of the industry, especially in the Greater Mekong Sub-region countries. This article focuses on two major problems, which represent a disparity between the knowledge needs of the tourism and hospitality industry and the knowledge provided by curricula in higher education. The authors leverage a knowledge engineering perspective so as to bridge the gap between knowledge demand and supply as related to e-tourism and hospitality curriculum design.
    Keywords: E-tourism, knowledge engineering, knowledge management, supply chain management, knowledge supply chain
    JEL: L83 M1 O1
    Date: 2016–04–27
  2. By: de Almeida Ramos, George Manuel; Fernandes, João Luís Jesus
    Abstract: This paper aims to supply some elements regarding tourism territories’ building in low density areas, and to corroborate the creation of a specific tourism territory (the Naturtejo Geopark) by the role carried out by a new territorial actor – Naturtejo, EIM (a Portuguese geopark´s management firm) - allowing tourism activities within a territorial scope different from the traditional territorial units’ partition. The methodology applied is based on literature review and a specific case study used to show the creation of a new tourism territory. The results achieved suggest that concerted action in this new tourism territory has been producing positive effects from the supply-side point of view.
    Keywords: Low-density areas; tourism territories; geoparks
    JEL: L83 M1 O1
    Date: 2015–12–14
  3. By: B. Biagi; MG. Brandano; M. Pulina
    Abstract: So far, the Synthetic Control Method (SCM) has not been employed for evaluating the impact of tourism taxation. A lack of research on this topic is possibly due to the fact that, for example, in many European municipalities a tourism tax has been levied only very recently. Hence, the objective of the present paper is to investigate the effects of a taxation intervention on tourism flows by using the SCM. This work presents a case study based on a panel of municipalities in Sardinia (Italy), for the time span 2006-2011. Results highlight that tourism taxation has affected domestic and international tourism flows in a different manner. Applications to other contexts would guide policy makers on the actual effects of tourism taxation and related sustainable local policies.
    Keywords: Synthetic control; tourism taxation; policy evaluation
    Date: 2016
  4. By: Jorge Andraz (Faculdade de Economia, Universidade do Algarve and CEFAGE); Paulo Rodrigues (Banco de Portugal and NOVA School of Business and Economics, Universidade Nova de Lisboa)
    Abstract: We propose the use of a tool recently introduced by Gayer (2010), known as the "economic climate tracer", to analyze and monitor the cyclical evolution of tourism source markets to Portugal. Considering the period 1987-2015, we evaluate how tourism to Portugal has been affected by economic cycles. This tool is useful as it clearly illustrates the evolutionary patterns of different markets, and allows us to identify close relationships with economic fluctuations. We found that German tourism plays a leading role, since its movements are followed with delays by tourism flows from other countries, and exhibits higher resilience to shocks. Also, domestic and Spanish tourism have both displayed less irregular behaviors than tourism from other source markets. On the contrary, tourism from the Netherlands and the UK, have displayed irregular patterns, which demonstrates the urgency to diversify tourism source markets to reduce the country's vulnerability to external shocks and economic cycles.
    Keywords: Tourism cycles, tourism demand, Portugal, crises.
    Date: 2016
  5. By: Douglas Barrios (Center for International Development at Harvard University); Stuart Russell (Center for International Development at Harvard University); Matt Andrews (Center for International Development at Harvard University)
    Abstract: There is perhaps no larger sports policy decision than the decision to host or bid to host a mega-event like the FIFA World Cup or the Summer Olympics. Hosts and bidders usually justify their decisions by touting their potential impact. Many organizers and promoters either fund or widely disseminate ex-ante studies that tend to highlight the positive effects of the event. For instance, the consultancy firm Ernst & Young produced a 2010 report prior to the 2014 World Cup in Brazil that painted an optimistic picture of the event’s potential legacy. It estimated that an additional R$ 142.39 billion (4.91% of 2010 GDP) would flow through the Brazilian economy over the 2010-2014 period, generating 3.63 million jobs per year, R$ 63.48 billion (2.17% of 2010 GDP) of income for the population and additional tax collection of R$ 18.13 billion (0.62% of 2010 GDP) for the local, state and federal governments. Ernst & Young estimated that during the same period 2.98 million additional visitors would travel to Brazil, increasing the international tourist inflow up to 79%. Such results, if true, would clearly attractive for governments considering a bid, but these expected impacts don’t always materialize. Moreover, hosting mega-events requires significant investments - and the cost of these investments is rising. Zimbalist notes emerging economies like China, Brazil, and South Africa have increasingly perceived "mega-events as a sort of coming-out party signaling that [they are] now a modernized economy, ready to make [their] presence felt in world trade and politics" (Zimbalist 2015). Their intentions may be noble, but the intention of using mega-events as a "coming-out party" means developing countries hoping to host them need to make massive investments. They are confronted by significant obstacles in that they lack sufficient stadiums, accommodations, transportation systems, and other sports-related infrastructure. As a result, each of the mega-events hosted by emerging economies has been exorbitantly expensive. The 2014 World Cup cost Brazil between USD 15 billion and USD 20 billion, while Beijing reportedly spent USD 40 billion prior to the 2008 Summer Olympic (Zimbalist 2015). Additionally, as the debt-ridden 1976 Summer Olympics in Montreal demonstrates, expensive mega-events are not limited to emerging economies alone. Flyvbjerg and Stewart have even shown that every Olympics since 1960 has gone over budget (Flyvbjerg and Stewart 2012). Such incredible figures, in terms of both costs and benefits, beget the question: are mega-events worth it? Which type of reports should governments focus their attention on? What economic consequences should a government reasonably expect? With such high stakes, policymakers need to choose wisely. We attempt to answer these questions and aid the decisions of policymakers by providing a concise review of the rich academic literature on mega-events. For the purposes of this paper, we mainly focus on the Summer Olympic Games and the FIFA World Cup as mega-events. However, we also leverage information regarding events like the Winter Olympic Games, the UEFA football championships, and the Commonwealth Games. These events are organized on a smaller scale than the previous two, but they might provide some insights on how to best understand mega-events. We focus on claims surrounding the direct or indirect mechanisms that facilitate the impact that ex-ante studies predict. We provide a review of these claims and their validity according to the existing literature. Section 1 focuses on the argument that mega-events lead to increased economic activity in the host economy. Specifically, we evaluate whether or not mega-events leads to access to previously inaccessible funds and increased investments. These investments could theoretically come from supranational organizations, private stakeholders, or public stakeholders. We also consider whether or not these new expenditures and investments have the multiplicative effect that many ex-ante studies assume they have. We finally investigate if the economic activity surrounding mega-events leads to increased revenues and tax collection for host governments. Overall, the existing academic literature suggests that any increased economic activity resulting from the event is routinely dwarfed by additional public budgetary commitments. Moreover, the arguments regarding multiplicative effects and increased revenues also tend to be exaggerated. Section 2 shifts the focus to the potential impact of mega-events on a specific industry: tourism. We explore the effect of mega-events on the number of tourists visiting the host region and their spending habits. We explore this channel both for analyses specific to a single mega-event and for cross-country evaluations incorporating many events. Next, we consider the impact of a mega-event on a region’s brand and image in the international community with the idea of testing if hosting the competition will impact future tourism. Finally, we consider if mega-events lead to increases in the capacity of a city or country to welcome future tourists as a result of improved airport infrastructure, accommodations, and/or transportation systems. As was true in Section 1, the academic literature suggests that the claims of many ex-ante studies are misleading. Our review finds that there is some evidence for increases in tourist arrivals to certain events, but those increases are far smaller than what is generally predicted beforehand. These effects are also usually dependent on factors, such as the timing of the competition, that are specific to the host region and the event itself. Section 3 briefly discusses other potential qualitative and social impacts of mega-events such as international business relations, crime reduction, and the "feel-good effect." In the penultimate section, Section 4, we discuss how these conclusions should impact the decision-making of policymakers. Finally, in a short conclusion, we summarize the findings of our review.
    Date: 2016–07

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