nep-tur New Economics Papers
on Tourism Economics
Issue of 2020‒07‒20
five papers chosen by
Laura Vici
Università di Bologna

  1. Dynamic pricing and revenues of Airbnb listings: estimating heterogeneous causal effects By Veronica Leoni; Jan Olof William Nilsson
  2. Tourism and insecurity in the world By Asongu, Simplice; Uduji, Joseph; Okolo-Obasi, Elda
  3. Terror and Tourism: The Economic Consequences of Media Coverage By Besley, Timothy J.; Fetzer, Thiemo; Mueller, Hannes Felix
  4. Impact of the Qatar Crisis on Turkey’s Economic Relations with Qatar, Saudi Arabia and the UAE By Nader Habibi
  5. Travel behaviour after the pandemic: the case of Bulgaria By Ivanova, Maya; Ivanov, Ivan Krasimirov; Ivanov, Stanislav Hristov

  1. By: Veronica Leoni (Universitat de les Illes Balears); Jan Olof William Nilsson (Universitat de les Illes Balears)
    Abstract: This paper investigates the extent to which the implementation of intertemporal price discrimination affects Airbnb listings’ revenue. We found that on average, a price surge (i.e., increasing the price as we approach the date of service consumption) has an adverse effect on revenue. However, the magnitude of such effect exhibits significant heterogeneity among listings. Through the application of generalized random forests, a causal machine learning technique, we identify exacerbating and moderating treatment modifiers and shed light on the listing dimensions that cause price surges to be particularly detrimental for hosts’ revenues.
    Keywords: Airbnb; dynamic pricing; heterogeneous causal effects; generalized random forest.
    JEL: Z30 Z31 C21 C26
    Date: 2020
  2. By: Asongu, Simplice; Uduji, Joseph; Okolo-Obasi, Elda
    Abstract: The study assesses the role of forces of law and order in modulating the insecurity-tourism nexus in 163 countries for the period 2010 to 2015. Policy syndromes or insecurity dynamics include: violent crime, access to weapons, political instability and perception of criminality while the policy variables of forces of law and order are captured with “security officers & police” and “armed service personnel”. The empirical evidence is based on Negative Binomial regressions. The findings show that the policy variables can be effectively used to crowd-out the negative incidence of policy syndromes on tourist arrivals. The results are contingent on net effects (from conditional and unconditional effects), insecurity dynamics and thresholds. A threshold is an inflexion point at which the unfavorable unconditional effect from a policy syndrome of insecurity on tourist arrivals is completely neutralized by policy variables of forces of law and order. Policy implications are discussed.
    Keywords: Insecurity; Peace; Tourism
    JEL: D74 Z0
    Date: 2019–01
  3. By: Besley, Timothy J.; Fetzer, Thiemo; Mueller, Hannes Felix
    Abstract: This paper studies the economic effects of news-coverage of violent events. To do so, we combine monthly aggregated and anonymized credit card data on tourism spending from 114 origin countries and 5 tourist destinations (Turkey, Egypt, Tunisia, Israel and Morocco) with a large corpus of more than 446 thousand newspaper articles covering news on the 5 destination countries from a subset of 57 tourist origin countries. We document that violent events in a destination are followed by sharp spikes in negative reporting at origin and contractions in tourist activity. Media coverage of violence has a large independent effect on tourist spending beyond what can be accounted for by controlling for the incidence of violence. We develop a model in which tourist beliefs, actual violence and media reporting are modelled together. This model allows us to quantify the effect of violent events and reporting.
    JEL: D74 D83 F14 F15 H12 L82
    Date: 2020–01
  4. By: Nader Habibi (Brandeis University)
    Abstract: In June 2017 Saudi Arabia and the United Arab Emirate launched a transport and economic blockade against Qatar to punish her for supporting hostile Islamic groups and maintaining good relations with Iran. Turkey, which had good economic relations with both Saudi Arabia and the UAE opposed the blockade and expressed full support for Qatar. In this article I look at how the economic relations of Turkey with Qatar, Saudi Arabia and the UAE have evolved ever since. Looking at trade, investment and tourism data it is clear that there has been a sharp increase in bilateral economic relations between Turkey and Qatar. The Qatar crisis has had a negative impact on economic relations of Turkey with Saudi Arabia and the UAE but the there are some differences in the magnitude of decline in specific activities. The setback in bilateral trade has been more severe in Turkey-UAE relations, while the decline in investment ties has been more significant in Turkey-Saudi linkage. In the travel and tourism sector, which is more driven by consumer preferences than government directives, Turkey has remained a popular destination for UAE and Saudi tourists despite the diplomatic tensions. In 2019 Saudi government has launched a campaign to discourage its citizens from travel and investment in Turkey.
    Keywords: Economic Development, Qatar, Economic Sanctions, GCC, Turkey, Saudi Arabia, The UAE, Blockade, Bilateral Trade, Tourism, The Middle East.
    JEL: F14 F51 N45 N75 O53
    Date: 2019–08
  5. By: Ivanova, Maya; Ivanov, Ivan Krasimirov; Ivanov, Stanislav Hristov (Varna University of Management)
    Abstract: The paper analyses the travel intentions of tourists in the post-pandemic world. The sample includes 974 respondents from Bulgaria. The findings show that most of the respondents are ready to travel within two months after travel is allowed in the country. For their first trip, they will travel in the country, by their car and with their family. Hygiene, disinfection and reliable health system in a destination will be important factors in travellers’ decisions. Women and older respondents have higher health safety preferences than men and younger respondents.
    Date: 2020–06–08

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