nep-tur New Economics Papers
on Tourism Economics
Issue of 2017‒09‒24
four papers chosen by
Laura Vici
Università di Bologna

  1. A Tourism Financial Conditions Index for Tourism Finance By Chia-Lin Chang; Hui-Kuang Hsu; Michael McAleer
  2. Circular causality in aviation and tourism demand By Tay-Ryang Koo; Christine Lim; Frédéric Dobruszkes
  3. The Role of Inbound Tourist Flows in Promoting Exports By Zouheir El-Sahli
  4. Wine and Food Route as a collective mark for wine tourism product: a sequential game By Sebastiano Patti

  1. By: Chia-Lin Chang (Department of Applied Economics Department of Finance National Chung Hsing University, Taiwan.); Hui-Kuang Hsu (Department of Finance National Pingtung University, Taiwan.); Michael McAleer (Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.)
    Abstract: The paper uses monthly data on tourism related factors from April 2005 - June 2016 for Taiwan that applies factor analysis and Chang’s (2015) novel approach for constructing a tourism financial indicator, namely the Tourism Financial Conditions Index (TFCI). The TFCI is an adaptation and extension of the widely-used Monetary Conditions Index (MCI) and Financial Conditions Index (FCI) to tourism stock data. However, the method of calculation of the TFCI is different from existing methods of constructing the MCI and FCI in that the weights are estimated empirically. The empirical findings show that TFCI is statistically significant using the estimated conditional mean of the tourism stock index returns (RTS). Granger Causality tests show that TFCI shows strong feedback on RTS. An interesting insight is that the empirical results show a significant negative correlation between F1_visistors and RTS, implying that tourism authorities might promote travel by the “rich”, and not only on inbound visitor growth. The use of market returns on the tourism stock sub-index as the sole indicator of the tourism sector, as compared with the general activity of economic variables on tourism stocks, is shown to provide an exaggerated and excessively volatile explanation of tourism financial conditions.
    Keywords: Monetary Conditions Index; Financial Conditions Index; Model-based Tourism Financial Conditions Index; Unbiased Estimation.
    JEL: B41 E44 E47 G32
    Date: 2017–07
  2. By: Tay-Ryang Koo; Christine Lim; Frédéric Dobruszkes
    Abstract: Unlike income or relative prices, air transport attributes and tourism demand on a given route can be endogenous. Using instrumental variables, this study attempted to account for the circular causality in estimating the effect of direct air service on tourism demand. Although we foundevidence of endogeneity, the nature of the circular causation is context-specific; while direct air service can be regarded as an exogenous variable in one direction, it can have an endogenous relationship on the other. Findings emphasise the need to explicate information about the network nature of transportation and its endogenous relations with tourism.
    Date: 2017
  3. By: Zouheir El-Sahli (Aix-Marseille Univ. (Aix-Marseille School of Economics), CNRS, EHESS and Centrale Marseille)
    Abstract: While it is established that tourism benefits growth through increased employment and investments, it is not well understood whether tourism has an effect on exports. This paper explores exports as an additional channel through which tourism affects domestic economic activity. Using bilateral tourist and trade flows, I explore the causal effect of tourist flows on exports. To deal with endogeneity, I construct two instruments that I use on two different sets of exporters. The evidence points in the same direction. I find that tourism affects mainly the exports of differentiated products. Specifically, I find that tourism benefits the exports from non-OECD exporters of processed food products and this effect is only estimated for South-North trade with an elasticity close to 1. For European countries, the findings point in the same direction; tourism affects differentiated consumer products and processed food with elasticity close to 1, which adds plausibility to the earlier results. I also find a lagged effect for tourism mainly on the export of consumer goods (for the two samples) and processed food products (for European countries). The results suggest that exports is an additional channel through which tourism can stimulate domestic economic activity in the tourist destination.
    Keywords: tourism, globalization, trade, gravity, terrorism
    JEL: F1
    Date: 2017–05
  4. By: Sebastiano Patti
    Abstract: The Wine and Food Routes (WFRs) identify socio-territorial entities, which involve many private and public actors. This paper will take into consideration just wineries and local counties. The purpose is to suggest WFR as a collective (trade)mark for wine tourism. This paper is theoretical and the methodology used concerns a game theoretical approach through which a sequential game of adhesion - exit model has been set-up. This work intends to show whether a WFR can be considered as a collective trademark to study the behavior of the wineries in evaluating to adhere or not to the WFR. The paper will also show that in some cases the adhesion to the WFR can appear to be too rigid for producers influencing in some way the good performance of the WFR itself. Further considerations should be taken regarding the relationship between the local stakeholders when WFR start functioning. The main finding is that the use of a collective trademark for wine tourism entrepreneurs is not always useful. The creation of a collective trademark can be efficient or not as well as the non creation of the mark. Its use can stimulate entrepreneurs to improve the quality of their goods and thus foster competition. The implications concern the fact that alliances among local players acting within WFR can generate improved quality of services, enhanced visibility and cross-marketing activities with other members and the involvement in local events. Furthermore, a strong relationship between entrepreneurs and public institutions in the short run should be a way to reinforce entrepreneurial co-operation and encourage further business development in the long run. The originality of this work regards the use of a game theoretical approach within the wine tourism sector.
    JEL: D R
    Date: 2017–04–26

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