nep-tur New Economics Papers
on Tourism Economics
Issue of 2020‒11‒02
two papers chosen by
Laura Vici
Università di Bologna

  1. International trade in travel and tourism services: Economic impact and policy responses during the COVID-19 crisis By Barkas, Panagiotis; Honeck, Dale; Rubio, Ester
  2. Do more tourists promote local employment? By Libertad González Luna; Tetyana Surovtseva

  1. By: Barkas, Panagiotis; Honeck, Dale; Rubio, Ester
    Abstract: In this paper, we investigate tourism-related policy approaches that WTO member countries adopted in the early weeks of the COVID-19 crisis. We highlight the need for stakeholders to coordinate their responses in order to mitigate the negative crisis effects and better prepare the sector for the future. In doing so, we explore the economic impact of potential tourism scenarios, underlining both the demand and supply side effects of the crisis. By compiling and organising information from a range of sources based on information available at the time, the paper provides a systematic approach to map and analyse tourism-related policies for 59 WTO Members across all continents. Our findings confirm that: (i) almost 90% of the countries analysed focused their tourism policy responses on economic stimulus measures to mitigate the negative impacts of COVID-19 and facilitate a strong recovery; (ii) more than half of the examined countries have taken financial measures to support the sector through loans, tax deferrals etc.; (iii) less than a third of the analysed countries enacted social and employment measures.
    Keywords: travel,tourism,services trade,COVID-19,economic policy,monitoring,economic impact
    JEL: F13 L83 O14
    Date: 2020
  2. By: Libertad González Luna; Tetyana Surovtseva
    Abstract: We analyze the short-term impact of tourist flows on local labour markets. We propose a novel identification strategy that uses shocks to competing international tourist destinations to instrument for tourist inflows across Spanish regions. We show that negative shocks in alternative international destinations have a strong positive effect on tourism flows to Spain. We follow an instrumental variables strategy and find that an exogenous increase in tourist inflows leads to more employment in the tourism industry for prime-age workers in the short term but does not increase total employment in local economies. Total employment actually falls for very young and older workers, as well as for prime-age women. The increase in employment in tourism is compensated by a fall in (low-skilled) employment in other sectors, especially construction and manufacturing.
    Keywords: employment, tourism, local labour markets, shift-share, terrorism, Spain
    JEL: J21
    Date: 2020–10

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