nep-tur New Economics Papers
on Tourism Economics
Issue of 2023‒07‒10
five papers chosen by
Laura Vici
Università di Bologna

  1. Regional impact of climate change on European tourism demand By MATEI Nicoleta-Anca; GARCIA LEON David; DOSIO Alessandro; BATISTA Filipe; RIBEIRO BARRANCO Ricardo; CISCAR MARTINEZ Juan Carlos
  2. Go Your Own WA: Recovery and regeneration for the tourism industry in Western Australia By Alan S Duncan; Alex Buckland; Abebe Hailemariam; Daniel Kiely; Silvia Salazar; Valentina Sanchez Arenas
  3. A theoretical model-based indirect estimation of the direct and cross price elasticities of demand for tourist goods and services By Asensi Descals-Tormo; Maria J. Murgui-García; Jose Ramon Ruiz-Tamari
  4. Behavioural science for sustainable tourism: Insights and policy considerations for greener tourism By Chiara Varazzani; Michaela Sullivan-Paul; Henrietta Tuomaila
  5. Ecotourism for Transformative and Youth Development in sub-Saharan Africa: the Role of Corporate Social Responsibility in Nigeria’s Oil Host Communities By Joseph I. Uduji; Elda N. Okolo-Obasi

  1. By: MATEI Nicoleta-Anca (European Commission - JRC); GARCIA LEON David (European Commission – JRC); DOSIO Alessandro (European Commission - JRC); BATISTA Filipe (European Commission - JRC); RIBEIRO BARRANCO Ricardo; CISCAR MARTINEZ Juan Carlos (European Commission - JRC)
    Abstract: The tourism industry, a significant contributor to European GDP, may face considerable stress due to climate change. This study examines the potential impact of climate change on tourism demand in European regions in the 2100 time horizon. Using data from 269 European regions over a 20-year monthly timespan, we estimate the effect of current climatic conditions (rated with a Tourism Climatic Index, TCI), on tourism demand, considering various regional typologies. Our findings reveal that climate conditions significantly affect tourism demand, with coastal regions being the most impacted areas. Next, we simulate the impacts of future climate change on tourism demand for four warming levels (1.5°C, 2°C, 3°C, and 4°C) under two emissions pathways (RCP4.5 and RCP8.5). We find a clear north-south pattern in tourism demand changes, with northern regions benefitting from climate change and southern regions facing significant reductions in tourism demand; that pattern becomes more pronounced for higher warming scenarios. The seasonal distribution of tourism demand would also change, with relative reductions in summer and increases in the shoulder and winter seasons.
    Keywords: tourism, climate change, panel data, TCI, NUTS 2
    JEL: C23 Q54 R11 Z32
    Date: 2023–05
  2. By: Alan S Duncan (Bankwest Curtin Economics Centre (BCEC), Curtin University); Alex Buckland (Bankwest Curtin Economics Centre (BCEC), Curtin University); Abebe Hailemariam (Bankwest Curtin Economics Centre (BCEC), Curtin University); Daniel Kiely (Bankwest Curtin Economics Centre, Curtin Business School); Silvia Salazar (Bankwest Curtin Economics Centre, Curtin University); Valentina Sanchez Arenas (Bankwest Curtin Economics Centre, Curtin University)
    Abstract: The seventh report in the Bankwest Curtin Economics Centre Focus on Industry report series, Go Your Own Way: Recovery and regeneration for the tourism industry in Western Australia, examines the dynamics of the tourism industry before and after the COVID-19 crisis and outlines the road to recovery for the sector in Western Australia. The report finds that Western Australia’s tourism industry continues to bounce back from a pandemic-induced slump, but that the industry still faces many challenges, including realising the potential of cultural tourism, re-engagement with the important Chinese market and workforce shortages in regional tourism areas.
    Keywords: tourism, tourism economics, diversification, industrial development, international trade, regional economic development, international visitors, travel expenditure.
    JEL: L38 L88 R1 R11 R12 F13
    Date: 2023–03
  3. By: Asensi Descals-Tormo (Department of Applied Economics, Universitat de València (Spain)); Maria J. Murgui-García (Department of Applied Economics, Universitat de València (Spain)); Jose Ramon Ruiz-Tamari (Department of Applied Economics, Universitat de València (Spain))
    Abstract: Understanding tourist behavior, demand elasticities and the purchasing power of regular tourists visiting a destination is of great interest to the tourism industry for business strategy and to governments for tourism public policy. We propose a new method to empirically estimate own-price and cross-price elasticities of demand for tourist goods and services, as well as an innovative way to measure the average tourist’s marginal utility of income. In the tourism sector we consider that there are two relevant markets, one for tourist goods and services and the other for accommodation. These are separate but interrelated because of the feedback between demands for lodging and tourism products through a vertical relationship of complementarity. The optimal solution to the tourist choice problem consists of a primary demand for tourist services and a derived demand for overnight stays. We focus on obtaining robust estimates of the elasticities corresponding to the former by forecasting the latter. Most of the empirical modeling of tourism demand consists of ad hoc equations that are not directly attached to a specific theoretical framework. Our paper provides a solid characterization of the empirical linkages between the demands for tourist goods and services and accommodation using economic theory. This paper extends existing theory and also makes an important contribution to the empirics of tourism economics, with an application to the tourism database of Australia, Canada, Spain and the United States that quantifies demand elasticities and identities the socioeconomic status of their respective tourists.
    Keywords: Elasticity, Overnight Stay, Preferences, Socioeconomic Status, Tourism Demand, Tourism Destination
    JEL: C51 D12 Z3
    Date: 2023–05–30
  4. By: Chiara Varazzani; Michaela Sullivan-Paul; Henrietta Tuomaila
    Abstract: This working paper explores the use of behavioural science for promoting environmentally sustainable tourism. It looks at how to use behavioural science to encourage sustainable behaviour, targeting both the consumers and suppliers of tourism activities and services. It concludes with recommendations for planning and implementing a tourism recovery strategy that prioritises both economic and environmental sustainability.
    Keywords: Behavioral Insights, Behavioural Science, Carbon emission, COVID-19, Green transition, Greenhouse gas emissions, Net zero, Sustainability, Sustainable Tourism, Tourism, Travel
    Date: 2023–06–14
  5. By: Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria)
    Abstract: We examine the impact of multinational oil companies' (MOCs) corporate social responsibility (CSR) initiatives on enabling youth participation in theecotourism development in Niger Delta region of Nigeria. Results from the use ofaverage treatment test of a combined propensity score matching and logit model indicate a significant difference between youths in MOCs’ CSR global memorandum of understanding (GMoU) households and non-GMoU households in the four parameters measured: availability of finance (3.76), access to adequate training (5.91), direct patronage (18.97), and economic capability of the youths (8.2).It shows that opportunities to supply products and services to the tourism sector can help ensure a sustainable market and increase incomes and other revenues in local communities driven from ecotourism – related activities, while minimizing economic leakages. This suggests that a pro-youth GMoU ecotourism projects of MOCs have a potential to play in the formation of linkages to help promote local economic development through job creation and business opportunities. It implies that a younger generation can help to promote economic diversification and contribute to job creation and enterprise development, while helping to address underdevelopment in remort areas and intractable environmental challenges of sub- Saharan Africa.
    Keywords: Ecotourism development, environmental justice, corporate social responsibility, Niger Delta youth, sub-Saharan Africa
    Date: 2023–01

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