nep-tur New Economics Papers
on Tourism Economics
Issue of 2020‒08‒17
seven papers chosen by
Laura Vici
Università di Bologna

  1. Global Tourism and Waves of Terror: Perspectives from Military Expenditure By Asongu, Simplice; Acha-Anyi, Paul
  2. The sustainability of tourism: global comparative evidence By Asongu, Simplice; Odhiambo, Nicholas
  3. Governance Quality and Tourism: Moderation of Social Determinants of Crime By Sinha, Avik; Sengupta, Tuhin
  4. The Impact of Tourism Development on Economic Growth in Sub-Saharan Africa By Sheilla Nyasha; Nicholas M. Odhiambo; Simplice A. Asongu
  5. House prices and tourism development in Cyprus: A contemporary perspective By Alola, Andrew; Asongu, Simplice; Alola, Uju
  6. Changing service settings for the environment: How to reduce negative environmental impacts without sacrificing tourist satisfaction By Dolnicar, Sara; Cvelbar, Ljubica Knezevic; Grün, Bettina
  7. The impact of COVID-19 on hotel performance: Evidence from a Difference-in-Differences approach By Polemis, Michael

  1. By: Asongu, Simplice; Acha-Anyi, Paul
    Abstract: This study complements existing literature by investigating how military expenditure can modulate the effect of terrorism externalities on tourism. The geographical and temporal scopes are 163 countries and the period 2010-2015. The empirical evidence is based on negative binomial regressions. Terrorism externalities are measured in terms of terror-related incidents, injuries, fatalities and damaged properties. We find that military expenditure significantly lessens the destructive impact of these terror-related incidents in order to induce positive net effects on tourism. This finding is robust to all measurements of terrorism. Homicides and violent demonstrations reduce tourists’ arrivals whereas the rate of incarceration of convicted offenders has the opposite effect. The analysis is extended to income levels and regions in order to provide more opportunities for policy implications. Justifications for differences in these comparative tendencies are discussed.
    Keywords: Military Expenditure; Terrorism; Tourism
    JEL: D74 H56 Z0
    Date: 2019–01
  2. By: Asongu, Simplice; Odhiambo, Nicholas
    Abstract: This study investigated the sustainability of global tourism in 163 countries for the period 2010 to 2015. Given the richness of the dataset, the data has been decomposed into 11 fundamental characteristics based on income levels, legal origins and openness to the sea. The empirical evidence was based on Generalised Method of Moments (GMM). Three main hypotheses were tested from which three broad findings were established. First, Hypothesis 1 is overwhelmingly valid because persistence in tourist arrivals is consistently an increasing function of income levels. Hypothesis 2 is not valid because French civil law countries are associated with comparatively higher levels of persistence in tourist arrivals. Hypothesis 3 is invalid because landlocked countries reflect higher levels of tourism persistence.
    Keywords: Tourism Sustainability, Income Level, Generalised Method of Moments (GMM)
    JEL: D74 Z0
    Date: 2019–01
  3. By: Sinha, Avik; Sengupta, Tuhin
    Abstract: Researchers have identified the impact of crime rates on tourism development, and in this study, we intend to look into the possible social causes behind those impacts. In this pursuit, we analyse the moderating role of social determinants of crime in shaping the association between tourism development and governance for 30 Asia-pacific countries over 1990-2017. In methodological terms, we have employed principal component analysis (PCA) for index building and generalized method of moments (GMM) for the estimation of long run elasticities. Using PCA, we have built separate indices for tourism development and social indicators. Results of GMM indicate that incidents of unemployment and increase in refugee population can diminish the positive impact of education on the association between tourism development and governance. The policymakers need to focus more on capacity building and job creation for internalizing the social imbalances, which might hamper the governance quality for fostering the development of tourism sector.
    Keywords: Tourism development; Refugee; Crime; Governance; GMM
    JEL: L83
    Date: 2020
  4. By: Sheilla Nyasha (UNISA, Pretoria, South Africa); Nicholas M. Odhiambo (UNISA, Pretoria, South Africa); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: This study examines the dynamic impact of tourism development on economic growth in sub-Saharan Africa (SSA) using the Generalised Method of Moments and data covering the period from 2002 to 2018. The increasingly important role of tourism and the limelight the tourism sector has been enjoying of late, on the one hand, and the lack of sufficient coverage of tourism-growth nexus studies in Africa in general and in SSA in particular, motivated this study. Unlike most of the known panel data-based studies on tourism development and economic growth, this study has split the sub-Saharan African countries into low-income and middle-income sub-Saharan African countries. The results of the study show that tourism expenditure negatively affects economic growth while tourism receipts have the opposite effect in SSA. The findings are robust to the low-income sub-sample while only the effect of tourism expenditure is robust in the middle-income sub-sample.
    Keywords: Tourism Development; Economic Growth; Sub-Saharan Africa, SSA, Middle Income Countries, Low Income Countries, Generalised Method of Moments, GMM
    JEL: O10 O40 Z3 Z32
    Date: 2020–01
  5. By: Alola, Andrew; Asongu, Simplice; Alola, Uju
    Abstract: This study investigates the nexus between tourism development and house prices in the Republic of Cyprus over the period spanning from 2005Q1 to 2016Q4. Tourism indicators vis-à-vis tourism arrivals along with other explanatory variables (domestic credit, land area per person, and the consumer price index) are employed in a multivariate Autoregressive Distributed Lag (ARDL)-bound test model. The empirical results indicate a significant evidence of cointegration. Indicatively, an observed adjustment of about 44% from short-run to long-run implies that the model is not relatively slow to adjust to disequilibrium. Importantly, a percent increase in tourism arrivals is observed to cause a rise in house price by about 37%. Expectedly, it is statistically observed that as the land area per person decreases, it is accompanied by a hike in house price. Also, the impacts of domestic credit offered to private enterprises and the consumer price index are different from the results in previous studies. As a policy guide, the government of Cyprus and stakeholders in the tourism and housing sectors should outline a strategy that will ensure the social welfare of people such that housing availability is not hampered by tourism activities.
    Keywords: house prices; tourism; domestic credit; cointegration; ARDL; Republic of Cyprus
    JEL: C22 N50 R31
    Date: 2019–01
  6. By: Dolnicar, Sara (The University of Queensland); Cvelbar, Ljubica Knezevic; Grün, Bettina
    Abstract: This article reports on a quasi-experimental study in which the use of emissions-intensive, water hungry thick cotton serviettes at hotel breakfast buffets was reduced by 95% by changing the default to recycled paper serviettes. The outcome is better for the environment, reduced costs for the hotel and does not influence guest satisfaction.
    Date: 2019–05–30
  7. By: Polemis, Michael
    Abstract: This note aims to investigate the impact of the national lockdown adopted by the Italian government on hotel performance. For this purpose, a difference-in-differences (DID) methodology is employed to compare the performance of the hotel industry in Italy and Turkey during the post-treatment period. The empirical findings based on a daily unbalanced panel data set indicate that the national lockdown adopted by the Italian government to stem the COVID-19 spread mitigated the level of hotel performance by 68% on average. Our empirical findings survive robustness checks to account for alternative proxies of hotel performance and the inclusion of time fixed effects on the model.
    Keywords: COVID-19; Hotel industry; Lockdown; Difference-in-Differences; Italy
    JEL: C23 Z18
    Date: 2020–07–25

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