nep-tur New Economics Papers
on Tourism Economics
Issue of 2018‒04‒16
four papers chosen by
Laura Vici
Università di Bologna

  1. Risk Spillovers in Returns for Chinese and International Tourists to Taiwan By Chia-Lin Chang; Shu-Han Hsu; Michael McAleer
  2. Short-term renting of residential apartments. Effects of Airbnb in the Icelandic housing market By Lúðvík Elíasson; Önundur Páll Ragnarsson
  3. Profit Luenberger and Malmquist-Luenberger indexes for multi-activity decision making units: the case of the star-rated hotel industry in China By Walheer, Barnabé; Zhang, Linjia
  4. Effects of Distance and Borders on International and Interregional Tourist Flows: A micro gravity analysis (Japanese) By MORIKAWA Masayuki

  1. By: Chia-Lin Chang (National Chung Hsing University, Taiwan); Shu-Han Hsu (National Chung Hsing University, Taiwan); Michael McAleer (Asia University, Taiwan; Erasmus University Rotterdam, The Netherlands)
    Abstract: Fluctuations in the numbers of visitors directly affect the rates of return on tourism business activities. Therefore, maintaining a firm grasp of the relationship between the changes in the numbers of Chinese tourists and international travellers visiting Taiwan is conducive to the formulation of an effective and practical tourism strategy. Although the topic of international visitors to Taiwan is important, existing research has discussed the issue of the travel demand between Chinese tourists and international travellers visiting Taiwan. This paper is the first to examine the spillover effects between the rate of change in the numbers of Chinese tourist arrivals and the rate of change in the numbers of international traveller arrivals. Using daily data for Chinese tourists and international travellers visiting Taiwan over the period from 1 January 2014 to 31 October 2016, together with the Diagonal BEKK model, the paper analyses the co-volatility spillover effects between the rate of change in the numbers of international travellers and the rate of change in the numbers of Chinese tourists visiting Taiwan. The empirical results show that there is no dependency relationship between the rate of change in the numbers of Chinese tourists and the rate of change in the numbers of international travellers visiting Taiwan. However, there is a significant negative co-volatility spillover effect between the rate of change in the numbers of Chinese tourists and the rate of change in the numbers of international travellers. The empirical findings suggest that Taiwan should abandon its development strategy of focusing only on a single market, namely China, and to be pro-active in encouraging visits by international travellers to Taiwan for sightseeing purposes, thereby increasing the willingness of international travellers to visit Taiwan. Moreover, with the reduction in the numbers of Chinese tour groups visiting Taiwan, and increases in the numbers of individual travellers, the Taiwan Government should change its previous travel policies of mainly attracting Chinese tour group travellers and actively promoting in-depth tourism among international tourists, by developing tourism that focuses on the special characteristics of different localities. In this way, the government can enhance the quality of Taiwan’s tourism, and also attract travellers with high spending power.
    Keywords: Risk spillovers; International tourism arrivals; Chinese tourist arrivals; Group tourists; Individual tourists; Medical tourists; Co-volatility effects; Diagonal BEKK model
    JEL: C22 C32 C58
    Date: 2018–03–30
  2. By: Lúðvík Elíasson; Önundur Páll Ragnarsson
    Abstract: This paper looks at the effects of recent growth in private renting to tourists on the net supply of housing and house prices in Iceland. The growth in private renting to tourists is documented and used to adjust estimates of housing supply. Data on actual bookings of apartments in the capital region of Iceland on Airbnb is used as an indicator for supply of housing to short term tourism rentals. This information is used to estimate the effects of short-term lodging on real house prices in Iceland as well as for making a suggestion for the measure of the residential housing stock. The contribution of the growth in the Airbnb market on real house prices is estimated at 2% per year over the last three years, or about 15% of the total increase in real house prices during that period.
    Date: 2018–02
  3. By: Walheer, Barnabé (Division of Economics, Xi'an Jiaotong-Liverpool University); Zhang, Linjia (Division of Economics, Xi'an Jiaotong-Liverpool)
    Abstract: Due to the vigorous economic development of the tourism industry in China, the number of star-rated hotels has rapidly increased. As a result, techniques to evaluate the performances of the star-rated hotels have gained in popularity. In this paper, we develop two indexes for dynamic settings: the profit Luenberger and Malmquist-Luenberger indexes. The distinguishing features of our indexes are three-fold. One, we adopt an economic perspective by considering that hotels are profit maximizers. Two, we model hotels as multi-activity decision making units by considering that they provide multiple services. Three, our indexes are nonparametric, and work when prices are partially observed. We apply our technique to 30 provinces in 2005-2015. We find that star-rated hotels present better performances over time, but not for every activity. Next, we highlight particular patterns for the provinces. These results are useful for managers to better target their investments, and also for policy makers.
    Keywords: destination management; profit efficiency; Luenberger index; Malmquist-Luenberger index; multi-activity; hotel; China.
    Date: 2018–04–01
  4. By: MORIKAWA Masayuki
    Abstract: This study measures the effects of geographical distance and national borders on tourist flows. Although there has been a large number of studies applying the gravity model to migration and tourist flows, analysis covering both international and intranational movements of people has been scarce. This study, using unique official statistics for accommodation facilities in Japan, empirically analyzes the determinants of both international and intranational tourist flows. According to the gravity model estimations, physical distance has a large negative effect on tourist flows, but the quantitative magnitude of the effects is not much different between foreign tourists visiting Japan and domestic interprefectural tourists. The border effect on tourist flow is large, and the number of tourists from foreign countries is more than 60% smaller than that of domestic ones. These results suggest that policies to mitigate border barriers may contribute to increasing the number of foreign tourists.
    Date: 2018–03

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