nep-tur New Economics Papers
on Tourism Economics
Issue of 2021‒12‒20
six papers chosen by
Laura Vici
Università di Bologna

  1. Tourist Tax and Ratings of Online Reviews By Antonio Marsi; Emanuela Randon
  2. Does Climate Policy Uncertainty Affect Tourism Demand? Evidence from Time-Varying Causality Tests By Nicholas Apergis; Konstantinos Gavriilidis; Rangan Gupta
  3. Reviving tourism sector in the aftermath of the Covid-19 pandemic: The role of competitive intelligence By Kettani, Zohor
  4. "A Recovery for Whom? The Case of the Greek Tourism Sector" By Vlassis Missos; Nikolaos Rodousakis; George Soklis
  5. Preparing the tourism workforce in Portugal for the digital future By OECD
  6. Estimating the Economic Impact of Major League Baseball’s All-Star Game Using High Frequency Tourism Data By Robert Baumann; Victor Matheson; E. Frank Stephenson; Robert Murray

  1. By: Antonio Marsi; Emanuela Randon
    Abstract: Tourist taxes represent one of the principal sources of revenue for a number of local authorities. Using a dataset of more than 300 thousands reviews on TripAdvisor, we analyze the effect of tourist taxes on online ratings posted by hotel costumers. Online ratings are strategic variables for the competitiveness of hotels and local destinations and so the assessment of the impact of tourist taxes on online reviews is important to design suitable strategies and policies both for firms and local municipalities. We show that the share of complaints about the tax increases with the tax rate, but the relationship gets weaker as the hotel quality increases, suggesting that low-quality costumers are more sensitive to tax increases. Tax mentioning reviews have on average a 20% lower rating and this difference becomes smaller and not significant for high quality hotels. We disentangle the different sources of complaining, finding that the lack of information and the cash payments weight more negatively on the average rating (respectively less 27% and 21%). Using a random-effects logit model we show that what matters for costumers is the percentage tax on the room price and not the absolute amount of the legal tax rates based on the hotel stars. This effect is present only for hotel stays with an average double room price under 100 Euros. Our results provide public authorities with useful suggestions to change the actual tax system by setting the tourist tax as an ad valorem tax on room price and assessing optimal tax rates accordingly to their incidence on the price of the stay.
    JEL: D12 H21 H22 L83 Z3
    Date: 2021–12
  2. By: Nicholas Apergis (Department of Banking and Financial Management, University of Piraeus, Karaoli & Dimitriou 80, 18534, Piraeus, Greece); Konstantinos Gavriilidis (Stirling Management School, University of Stirling, FK9 4LA, Stirling, UK); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa)
    Abstract: This study examines whether climate policy uncertainty affects the propensity of people to travel. To do so, we employ the Climate Policy Uncertainty (CPU) index and US air travel data to eight regional overseas destinations for the period 2000-2019. Using time-varying causality tests to deal with the structural breaks that exist in the relationship between CPU and US air travel, we find that CPU is a major determinant of air-travel demand to all destinations examined. The results are robust when we control for macroeconomic factors, uncertainty and geopolitical risks. The findings have important implications for destination countries and tourism professionals.
    Keywords: Climate policy uncertainty, CPU index, air travel destinations, US, structural breaks, time-varying causality test
    JEL: C32 C51 L8
    Date: 2021–12
  3. By: Kettani, Zohor
    Abstract: Towards the end of 2019, the world experienced an unprecedented crisis. The COVID-19 virus was spreading quickly forcing authorities to impose drastic measures to contain it. Thus, the pandemic resulted in a deep worldwide economic crisis leaving many sectors vulnerable. Tourism, a vital sector that contributes strongly to the economic growth of many countries, was seriously affected. Even though some borders have been opened, vaccination campaigns have been launched and restrictions have been softened worldwide, the sector still struggles. In order to stimulate their activities, in the new challenging context created by the pandemic, tourism companies should not mainly rely on the support measures offered by governments. They are rather required to re-examine their traditional managerial approaches and start implementing more effective practices, such as competitive intelligence to anticipate future threats and identify new growth opportunities. The aim of this paper is therefore to provide a reflection on the role that competitive intelligence could have in the recovery of the tourism sector following the damages caused by the Covid-19 pandemic.
    Keywords: Competitive intelligence, information, anticipation, Covid-19 pandemic, tourism, recovery
    JEL: D8 D81 D83 L83
    Date: 2021–03–30
  4. By: Vlassis Missos; Nikolaos Rodousakis; George Soklis
    Abstract: The COVID-19 pandemic has revealed multiple risks faced by economies whose production structures depend on the volatility of international conditions. In the case of Greece, this has manifested itself in the severe impact the pandemic has had on one of the linchpins of the Greek economy: the tourism sector. Vlassis Missos, Nikolaos Rodousakis, and George Soklis document the impact of the pandemic on tourism and the significance of tourism revenues for Greece's 2021 GDP recovery. They argue that the distributional effect of the tourism sector plays a significant role in overall income inequality in Greece and develop a number of policy recommendations aiming to correct some of the problematic aspects of the country's tourism sector.
    Date: 2021–11
  5. By: OECD
    Abstract: After a decade of steady growth, the tourism sector in Portugal is facing its most acute challenge in modern times, in the wake of the COVID-19 pandemic. As inbound visitors return to Portugal, the tourism workforce will need digital skills to make effective use of new technologies, and exploit the opportunities digitalisation is opening up for marketing, as well as product and destination development. Successful digital uptake by businesses will be a driving force in building recovery and resilience in the longer term. While there has been progress in recent years, especially in response to the pandemic, there remains considerable scope to go further. To support this digital transformation, this report examines and assesses current policy approaches to support digital skills and workforce development in the sector, and presents a selection of policy considerations to: i) address digital transformation gaps, shortages and opportunities for workforce organisation and skills development, and ii) enhance governance mechanisms to support the digital skills transformation of the tourism workforce.
    Keywords: digital future, digital skills, digital transformation, governance, Portugal, tourism, workforce
    JEL: Z38 L83 J24
    Date: 2021–12–14
  6. By: Robert Baumann (College of the Holy Cross); Victor Matheson (College of the Holy Cross); E. Frank Stephenson (Berry College); Robert Murray (College of the Holy Cross)
    Abstract: Despite claims, primarily from Republican lawmakers, that the removal of the 2021 Major League Baseball All-Star Game has cost local businesses in the Atlanta area $100 million in damages, an examination of hotel occupancy during the 2014 All-Star Game in Minneapolis and the 2019 All-Star Game in Cleveland suggests that these events generated at most 10,000 additional room nights and $4.5 million in additional hotel revenues for the host cities. These figures suggest that the All-Star Game generates a total direct marginal increase in tourism spending of only $3.9 to $9.4 million. Claiming that Georgia has lost $100 million from the removal of the game is pure fiction with no basis in economic data.
    Keywords: sports, stadiums, baseball, All-Star Game, mega-events
    JEL: L83 Z20
    Date: 2021–07

This nep-tur issue is ©2021 by Laura Vici. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.