nep-tur New Economics Papers
on Tourism Economics
Issue of 2019‒02‒11
six papers chosen by
Laura Vici
Università di Bologna

  1. Contemporary Drivers of Global Tourism: Evidence from Terrorism and Peace Factors By Asongu, Simplice; Nnanna, Joseph; Biekpe, Nicholas; Acha-Anyi, Paul
  2. Making the most of tourism in Indonesia to promote sustainable regional development By Patrice Ollivaud; Peter Haxton
  3. Spain's tourism models in the first third of the twentieth century By Cirer-Costa, Joan Carles
  4. Conservation or deterioration in heritage sites? Estimating willingness to pay for preservation By Ali Ardeshiri; Roya Etminani Ghasrodashti; Taha Hossein Rashidi; Mahyar Ardeshiri; Ken Willis
  5. Do sustainability policies finance local economies? By Bernini, Cristina; Cerqua, Augusto
  6. Hotel rankings of online travel agents, channel pricing, and consumer protection By Hunold, Matthias; Kesler, Reinhold; Laitenberger, Ulrich

  1. By: Asongu, Simplice; Nnanna, Joseph; Biekpe, Nicholas; Acha-Anyi, Paul
    Abstract: This study examines the effect of terrorism and peace on tourist destination arrivals using a panel of 163 countries with data for the period 2010 to 2015. The empirical evidence is based on Generalised Method of Moments and Negative Binomial (NB) regressions. Our best estimators are from NB regressions from which the following main findings are established. First, political instability, violent demonstrations and number of homicides negatively affect tourist arrivals while the number of incarcerations positively influences the outcome variable. Second the effects from military expenditure, “armed service personnel” and “security officers and polices” are not positively significant. Managerial implications are discussed.
    Keywords: Terrorism; Peace; Tourism; Generalised Method of Moments; Negative Binomial Regressions; Military expenditure; Armed service personnel; Security officers and polices; Drivers and Panel data
    JEL: C52 D74
    Date: 2018–01
  2. By: Patrice Ollivaud; Peter Haxton
    Abstract: Tourism has boomed in Indonesia in recent years and is already one of the main sources of foreign-currency earnings. Indonesia has rich and diverse natural assets, whose tourism potential remains underutilised. The government has an ambitious target of attracting 20 million tourists by 2019, up from nearly 14 million in 2017. The main destination will continue to be Bali. Using Bali as the preferred development model, the government wants to develop other destinations, particularly through infrastructure programmes to improve connectivity, which is a longstanding challenge for tourism as well as for regional development more generally. Enhancing the tourism-related skills of local populations will provide them with expanded job opportunities. This calls for reforms to vocational education and training. Moreover, recent efforts by the authorities to improve the business environment need to continue, including through helping firms embrace digitalisation. Tourism may be growing too fast in some destinations without adequately taking into account sustainability issues, both for the environment and local communities. Better planning and co-ordination at all levels of government and across relevant policy areas can facilitate more sustainable tourism development.This Working Paper relates to the 2018 OECD Economic Survey of Indonesia ( y-indonesia.htm).
    Keywords: digitalisation, Indonesia, infrastructure, regional development, sustainable development, tourism, vocational education and training
    JEL: L83 R58 Q56 H54
    Date: 2019–02–13
  3. By: Cirer-Costa, Joan Carles
    Abstract: The remarkable emergence of the service sector to dominate the modern economy is the most outstanding consequence of the Industrial Revolution in the first third of the twentieth century. With it appeared a new social class which made an active contribution to the sector’s growth by opting for a new kind of tourist provision which was very different from traditional models, above all holidays in Spain. In the first third of the twentieth century, tourism in Spain was characterised by a variety of coexisting business models. On the one hand, business travellers went to the major cities. On the other hand, there was holiday travel, which can be broken down into three categories: the first type is traditional leisure-based tourism of an aristocratic cast, which dominated in the north, in the region of the Bay of Biscay, while the second type involves foreigners visiting the mythic south of Andalusia: Granada, Malaga, Seville and Cordoba. The third and final type, which appeared on the island of Majorca shortly after World War I, is the most modern, based on international colonial maritime traffic and cruise liners.
    Keywords: The history of tourism; tourism in Spain; hospitality; Service industries, economic development, social change.
    JEL: L83 N73 N74 O14
    Date: 2019–01–29
  4. By: Ali Ardeshiri; Roya Etminani Ghasrodashti; Taha Hossein Rashidi; Mahyar Ardeshiri; Ken Willis
    Abstract: A significant part of the United Nations World Heritage Sites (WHSs) is located in developing countries. These sites attract an increasing number of tourist and income to these countries. Unfortunately, many of these WHSs are in a poor condition due to climatic and environmental impacts; war and tourism pressure, requiring the urgent need for restoration and preservation (Tuan & Navrud, 2007). In this study, we characterise residents from Shiraz city (visitors and non-visitors) willingness to invest in the management of the heritage sites through models for the preservation of heritage and development of tourism as a local resource. The research looks at different categories of heritage sites within Shiraz city, Iran. The measurement instrument is a stated preference referendum task administered state-wide to a sample of 489 respondents, with the payment mechanism defined as a purpose-specific incremental levy of a fixed amount over a set period of years. A Latent Class Binary Logit model, using parametric constraints is used innovatively to deal with any strategic voting such as Yea-sayers and Nay-sayers, as well as revealing the latent heterogeneity among sample members. Results indicate that almost 14% of the sampled population is unwilling to be levied any amount (Nay-sayers) to preserve any heritage sites. Not recognizing the presence of nay-sayers in the data or recognizing them but eliminating them from the estimation will result in biased Willingness to Pay (WTP) results and, consequently, biased policy propositions by authorities. Moreover, it is found that the type of heritage site is a driver of WTP. The results from this study provide insights into the WTP of heritage site visitors and non-visitors with respect to avoiding the impacts of future erosion and destruction and contributing to heritage management and maintenance policies.
    Date: 2019–02
  5. By: Bernini, Cristina; Cerqua, Augusto
    Abstract: We evaluate whether adopting a well-known transition management instrument in the tourism industry can support a combined goal of sustainability and economic growth. We create a detailed dataset at the municipality level and use a recently developed policy evaluation technique to investigate the causal impact of the Blue Flag program on the local economies of coastal destinations. Estimates show that this eco-label is not effective at enhancing the local economy; findings are homogeneous across destinations. This empirical result is in line with the recent theoretical literature arguing that the transition towards growing a sustainable economy is particularly complex and a single policy does not suffice.
    Keywords: sustainability policy; eco-label; transition management; policy evaluation method
    JEL: C23 Q56 Z18
    Date: 2019–01–31
  6. By: Hunold, Matthias; Kesler, Reinhold; Laitenberger, Ulrich
    Abstract: We investigate whether online travel agents (OTAs) assign hotels worse positions in their search results if these set lower hotel prices at other OTAs or on their own websites. We formally characterize how an OTA can use such a strategy to reduce price differentiation across distribution channels. Our empirical analysis shows that the position of a hotel in the search results of OTAs is better when the prices charged by the hotel on other channels are higher. This is consistent with the hypothesis that OTAs alter their search results to discipline hotels for aggressive prices on competing channels, thereby reducing the search quality for consumers.
    Keywords: consumer protection,free-riding,hotel booking,online travel agents,ranking,search bias
    JEL: D40 L42 L81
    Date: 2018

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