nep-tur New Economics Papers
on Tourism Economics
Issue of 2017‒10‒01
five papers chosen by
Laura Vici
Università di Bologna

  1. "Development Strategies to Improve the Ecotourism of Indigenous Villages" By Dyah Maya Nihayah
  2. An Analysis of the Impact of Low Cost Airlines on Tourist Stay Duration and Expenditures By Qiu, Wanling; Rudkin, Simon; Sharma, Abhijit
  3. The Impact of Football Attendance on Tourist Expenditures for the United Kingdom By Rudkin, Simon; Sharma, Abhijit
  4. A Tourism Financial Conditions Index for Tourism Finance By Chang, C-L.; Hsu, H-K.; McAleer, M.J.
  5. "Analysis of The Effect of Digital Word of Mouth (WOM) Marketing To Customer Purchase Decision" By Bunga Indah Bayunitri

  1. By: Dyah Maya Nihayah (Economics Faculty, Universitas Negeri Semarang, Indonesia. Author-2-Name: Amin Pujiati Author-2-Workplace-Name: Economics Faculty, Universitas Negeri Semarang, Indonesia. Author-3-Name: Moh. Khoiruddin Author-3-Workplace-Name: Economics Faculty, Universitas Negeri Semarang, Indonesia. Author-4-Name: Eni Kusrini Author-4-Workplace-Name: Economics Faculty, Universitas Negeri Semarang, Indonesia. Author-8-Workplace-Name:)
    Abstract: "Objective – The aim on which this study conducted is to identify the interaction of indigenous factors and external factors at a Tourism Village Nongkosawit and then to create right strategy to develop the tourist village. Methodology/Technique – This descriptive quantitative research approach focuses on actual problems or phenomena of Nongkosawit which are described based on under-investigation facts and are then rationally and accurately interpreted. Data based on field surveys and questionnaires were evaluated with SWOT analysis (Strength, Weakness, Opportunity, Threat). Findings – The obtained SWOT results shows that, total score of 3.26 in IFE matrix and 3.00 in the EFE matrix indicate that the appropriate strategy to development a Nongkosawit tourism village is turnaround strategy which means internal problems in this village must be minimized to seize the market opportunities. Then rehabilitating infrastructural facilities, including hotels, restaurants and local tourist guides, and taking advantage of diversity of the ecosystem. Novelty – The study suggests that village tourism should make improvements on the internal side by performing management reconstruction and perform sharpening market segments. Stakeholders and communities must work together to support the development of rural tourism to raise the regional economy."
    Keywords: Village; Tourism; Sustainable; Development; SWOT.
    JEL: L83 Q57
    Date: 2017–06–28
  2. By: Qiu, Wanling; Rudkin, Simon; Sharma, Abhijit
    Abstract: Low cost carriers (budget airlines) have a significant share of the air travel market, but little research has been done to understand the distributional effect of their operation on key tourism indicators such as length of stay and expenditure. Using data on European visitors to the United Kingdom we demonstrate how counterfactual decompositions can inform us of the true impact of mode of travel. Passengers on low cost carriers tend to spend less, particularly at the upper end of the distribution. Budget airline users typically stay longer, though differences in characteristics of observed groups are important to this result. Counterfactual techniques provide additional valuable insights not obtained from conventional econometric models used in the literature. Illustrating an application of the methodology to policy we demonstrate that enabling respondents to extend their stay generates the greatest additional expenditure at the lower end of the distribution. We also show nationality is a significant characteristic, with important impacts across the expenditure distribution.
    Keywords: low cost carriers, tourist expenditure, counterfactual decomposition
    JEL: R4 R41
    Date: 2017–09–14
  3. By: Rudkin, Simon; Sharma, Abhijit
    Abstract: We employ unconditional quantile regression with region of origin fixed effects, whereby we find that attending live football matches significantly increases expenditures by inbound tourist in the UK, and surprisingly we find that such effects are strongest for those who overall spend the least. Higher spending individuals spend significantly more than those who do not attend football matches, even when such individuals are otherwise similar. We analyse the impact of football attendance across the tourism expenditure distribution which is a relatively neglected aspect within previous research.
    Keywords: tourist expenditure, football attendance, unconditional quantile regression
    JEL: C5 D1
    Date: 2017–09–14
  4. By: Chang, C-L.; Hsu, H-K.; McAleer, M.J.
    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: 2017–08–01
  5. By: Bunga Indah Bayunitri (Economy Faculty of Widyatama University, Indonesia Author-2-Name: Fitri Nuraeni Author-2-Workplace-Name: Economy Faculty of Widyatama University, Indonesia Author-3-Name: Nenden Desi Author-3-Workplace-Name: Economy Faculty of Widyatama University, Indonesia)
    Abstract: "Objective – The study aims to explore the effect of digital Word of Mouth (WOM) marketing on customer purchase decision. Methodology/Technique – Types of research are a descriptive analysis and causal also measuring a conclusion by using a regression analysis and for hypothesis testing using t-test and F-test. Findings – The results of this research indicated that digital word of mouth marketing is effective and also has a influenced on customer purchase decision. The results show that digital word of mouth marketing included in the criteria of “Effective”, this means that customer respondents had a positive view about digital word of mouth marketing at Dusun Bambu by using these indicators: Talking, Promoting, and Selling. Novelty – It is suggested that the company can increase the quantity of purchases in one transaction by cooperating with local tour and travel agents in order to raise the number of visitors."
    Keywords: Digital Word of Mouth; Dusun Bambu; Marketing; Purchase Decision; Tourism.
    JEL: M31 M37
    Date: 2017–07–13

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