nep-tur New Economics Papers
on Tourism Economics
Issue of 2018‒06‒18
two papers chosen by
Laura Vici
Università di Bologna

  1. The Oil Price Collapse and the Birth of a Tourist Nation By Xie, Jinghua; Tveterås , Sigbjorn
  2. Probabilistic Approaches to Cleaning the Ganges in Varanasi to Attract Tourists By Batabyal, Amitrajeet; Beladi, Hamid

  1. By: Xie, Jinghua (University of Stavanger); Tveterås , Sigbjorn (University of Stavanger)
    Abstract: In this paper, we have estimated hotel revenue functions at the regional level in Norway. The purpose is to investigate the effects of the oil price collapse on tourism demand. The oil industry is a dominant economic sector in Norway. Its high demand for economic resources has inflated the general price level nationally. A side effect is that the Norwegian tourism industry has struggled with poor price competitiveness. We find the downfall in oil revenues caused by the fall in crude oil prices has boosted tourism growth through a weakening of the local currency, Norwegian kroner. This result suggests that a subset of rich countries where wealth inflate prices of tourism services can have problem in developing its tourism industry.
    Keywords: Oil price; tourism; exchange rate; price competitiveness; Norway
    JEL: A10
    Date: 2018–06–07
  2. By: Batabyal, Amitrajeet; Beladi, Hamid
    Abstract: We study two probabilistic approaches to cleaning the Ganges river when the underlying goal is to use the cleanup to sustain tourism in Varanasi, India. The first approach models the idea that because resources are scarce and cleanup is costly, not all pollutants in the Ganges can be removed. Therefore, a cleaning agency first establishes a benefit-cost ratio rule and then it uses this rule to remove from the Ganges only those pollutants whose removal satisfies the ratio rule. In contrast, the second approach focuses on removing all pollutants from the Ganges but the emphasis now is on the frequency of cleanup given that pollutants accumulate temporally and hence water quality deteriorates over time. Finally, we compare and contrast these two approaches and discuss the connections between the two approaches and the sustainability of tourism in Varanasi.
    Keywords: Cleanup, Ganges River, Tourism, Uncertainty, Varanasi
    JEL: L83 Q53
    Date: 2018–03–03

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