nep-tur New Economics Papers
on Tourism Economics
Issue of 2023‒03‒27
three papers chosen by
Laura Vici
Università di Bologna

  1. The Impact of Tourism on the Environment, Socio-culture and Local Communities of Gilgit-Baltistan, Pakistan By Mohammad Armughan
  2. Hotel and Restaurant Industries of Pakistan: Opportunities and Market Dynamics By Abbas Moosvi; Syed Talha Ali
  3. Inbound Tourism Demand and Japanese Regional Productivity before the COVID-19 Pandemic: The role of tourism agglomeration and electronic payment By KAMEYAMA Yoshihiro

  1. By: Mohammad Armughan (Pakistan Institute of Development Economics)
    Abstract: Gilgit-Baltistan (GB) lies in the northern part of Pakistan and has immense potential for tourism due to the immense beauty of its mountain peaks and many valleys and rivers. Many foreign and domestic tourists visit GB every year, with both positive and negative impacts on GB’s economy and its environment. However, the large influx of tourists affects the environment and local community. Thirty in-depth interviews were conducted to examine the perspective of the local community regarding tourism’s impact and the role of government in protecting the community. The results showed that tourism in GB generates employment opportunities for the locals but negatively impacts the environment by increasing solid waste, littering, air pollution, noise pollution, water contamination, deforestation, and traffic congestion.
    Keywords: COVID-19, Economic, Environment, Pollution, Socio-culture, Tourism
    Date: 2023
  2. By: Abbas Moosvi (Pakistan Institute of Development Economics); Syed Talha Ali (Pakistan Institute of Development Economics)
    Abstract: The tourism and hospitality industry has been rising in significance in Pakistan over the past few years, contributing 5.9% to national GDP and generating 3.8 million jobs in the year 2019. In terms of growth rates, this industry expanded by 3.5% in the same year, compared to the 2.5% expansion of the Pakistani economy as a whole. Considering the general growth of the tourism and hospitality industry of Pakistan, the Pakistan Institute of Development Economics carried out a series of focus group discussions and collected data via questionnaires with key stakeholders in the restaurant and tourism sectors – two of the primary contributors to the hospitality and tourism industry – to ascertain salient bottlenecks in these markets and how they can be corrected.
    Date: 2022
  3. By: KAMEYAMA Yoshihiro
    Abstract: This study utilizes prefectural panel data for the 2014-19 period to examine whether inbound demand contributes to the productivity growth of local economies. Before the COVID-19 pandemic, the destinations of inbound visitors gradually diffused to non-metropolitan regions, and a certain number of foreign visitors to Japan would visit many non-metropolitan destinations. With an increase in the number of foreign visitors to each region, IT-related factors, represented by cashless payments and reservation services through travel websites, have advanced throughout Japan. How did the agglomeration of tourism and the use of IT because of the dispersion of visitors to non-metropolitan areas of Japan affect local economies? In this study, the number of visitors to Japan is measured in terms of Tourism Market Potential (TMP), which is "the size of metropolitan and non-metropolitan (tourism) demand from foreign visitors to Japan, " and is used for the agglomeration effect. TMP does not measure the gross effect in terms of the simple scale of the number of visitors to Japan but rather the net effect, which includes accessibility from the origin to the destination. We then analyze how regional TMPs and IT-related factors affect productivity and wages in the prefectures. The estimation results indicate that both TMP- and IT-related factors have a positive impact on productivity and wages in the prefectures visited.
    Date: 2023–02

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