IATE Rimini 2017
preface
Preface This volume contains the abstracts of the papers submitted and presented at the 6th Conference of the IATE - International Association for Tourism Economics, hosted by the University of Bologna, Rimini Campus (Italy) between June the 20th and June the 23rd, 2017. Overall 199 submissions have been received. Each submission was reviewed by 2 anonymous referees and the committee decided to accept 171 papers. Net of withdrawn papers and of authors who could not attend the conference, this book includes 142 papers and 3 invited talks. The Conference, which builds upon the previous editions held in University of Balearic Islands (Spain, 2007), Chiang Mai University (Thailand, 2009), Bournemouth University (United Kingdom, 2011), University of Ljubljiana (Slovenia, 2013) and Hong Kong Polytechnic University (Hong Kong, 2015), has been co-organized by the Department of Economics (University of Bologna) and CAST - the Centre for Advanced Studies in Tourism, an inter-departmental research centre that was instituted and activated in February 2014 by the University of Bologna at the Campus of Rimini, in order to foster advanced scientific research and professional training in the tourism field. CAST is participated by the departments of: Economics, Management, Statistics, Quality of Life. We greatly acknowledge the sponsors and the partners of the Conference: for a non-profit organization like a University, the financial and in-kind support of sponsors and partners is vital: • STR Share Centre; • SAGE Publishing - Tourism Economics; • UNIRIMINI SpA; • San Marino Government; • San Marino Tourism Office; • Rimini City Hall; • Cooperativa Diapason - La Tavola Pitagorica As I am experiencing, the organization of an international conference is a huge task, and has been recently absorbing most of my time. However, I could have not organized the conference withouth the help of: • Marisa Masala (Rimini campus administration), the one who has always reminded me duties, deadlines, signatures and...bureaucratic obstacles: thank you very very much. • Annalisa Spalazzi (CAST): thank you for taking care of the Welcome Reception, of the Round Table and of the communication. • Marina Chiarini (Rimini campus administration): thank you for your help in the graphic design of the website and of all printed material. • All the students of the International courses at the Rimini Campus: ITALI (B.A.) International Tourism And Leisure Industries and TEaM (M.A.) - Tourism Economics and Management who volunteered for the Conference and helped me in: drafting the programme, preparing some of the material, tutoring during the Conference. i
IATE Rimini 2017
preface
• EasyChair, the Conference Management System that, even in its free basic licence, guided us from the initial paper submission to the final editing of the book of abstracts • The members of the IATE Executive Committee who ”secretly” received my ongoing reports in the long months of preparation of the conference, and who always gave me support, help and answers to my questions: Adam Blake (IATE President), Vicente Ramos (IATE Vice-President), Mondher Sahli (IATE General-Secretary). • The friends of the Local Organizing Committee (Patrizia Battilani, Alessia Mariotti, Maurizio Mussoni, Lorenzo Succi, Laura Vici, Lorenzo Zirulia) and of the IATE Executive Committee, who all together acted as Programme Committee of the Conference. That’s all folks! See you in 2019.
June 15, 2017 Rimini
ii
Paolo Figini
IATE Rimini 2017
Program Committee
Program Committee Patrizia Battilani Adam Blake Larry Dwyer Paolo Figini Gang Li Tanja Mihalic Maurizio Mussoni Andreas Papatheodorou Roberto Patuelli Sylvain Petit Stephen Pratt Vicente Ramos Andrea Saayman Mondher Sahli Neelu Seetaram Egon Smeral Haiyan Song Laura Vici Stephen Wanhill Lorenzo Zirulia
University of Bologna Bournemouth University UNSW University of Bologna University of Surrey University of Ljubljana University of Bologna University of the Aegean University of Bologna IDP, University of Valenciennes The Hong Kong Polytechnic University University of the Balearic Islands North-West University Victoria University of Wellington Bournemouth University Modul University Vienna The Hong Kong Polytechnic University University of Bologna Tourism Economics University of Bologna
1
IATE Rimini 2017
Author Index
Author Index
Abrate, Graziano Afonsor Rodr´ıguez, Julio Angel Aguil´ o, Eugeni Albaladejo, Isabel Alemayehu, Fikru Apostolakis, Alexandros Armstrong, Mike Arnaldos, Fuensanta Attard, Silvio Atzori, Roberta Avella, Dr John Baldarelli, Maria Gabriella Barbero, Andrea Barbini, Francesco Battilani, Patrizia Bernini, Cristina Bertacchini, Enrico Bianchi, Giuliano Blake, Adam Boari, Cristina Bratec, Miha Brown, Adam Bruno, Clementina Calderon Vazquez, Francisco J. Calveras, Aleix Cang, Shuang Cao, Zheng Casado-D´Iaz, Jose Manuel Cati, Matteo Maria Celik, Necmettin Cellini, Roberto Celma, Dolors Chen, Jason Li Chen, Yong Cicero, Lucia Cicognani, Simona Costa, Andreia Sofia ˙ Co¸skun, Inci Oya Cracolici, Maria Francesca Croes, Robertico Cuccia, Tiziana Curtale, Riccardo
4, 5 6 1, 133 7, 8 9 10 80 8 11 12 13 14 39 15, 96 15 16, 17 18 19, 27 20, 53, 140 96 21 80 4 101 22, 23 140 24 67 25 62 26 98 135, 138 27 28 29, 46 92 30 16 31, 111 26 32 1
IATE Rimini 2017
Curvers, Joppe Czarnecki, Adam Dalle Nogare, Chiara David Negre, Tatiana Defranco, Agnes Deng, Wen-Shuenn Detotto, Claudio Divisekera, Sarath Durio, Alessandra Duro Moreno, Juan Antonio Dwyer, Larry Dwyer, Larry M. El Fengour, Mohammed Elias, Silvina Erbetta, Fabrizio Ert, Eyal Espinola, Natalia Etzo, Ivan Eugenio-Martin, Juan Luis Falk, Martin Fan, Daisy Fetahu, Elvira Figini, Paolo Fjelstul, Jill Fleischer, Aliza Florido, Carmen Fourie, Alicia Fourie, Johan Fraquelli, Giovanni ˜ Fuster, BegoNa Fyall, Alan Gallego, Mar´ıa Santana Garriga, Anna Giannoni, Sauveur Goavec, Claire Gomes, Babul Thomas Gonz´ alez, Christian Gonz´ alez-Mart´ınez, Maribel Grisol´ıa-Santos, Jos´e-Mar´ıa Guadalupi, Carla Guimar˜ aes, Maria Helena Guntawongwan, Kansinee Gunter, Ulrich
2
Author Index
64 105 33 34 79 69 35 36, 37, 81 18 125 2 21 38 39 4 48 93 77 40 41, 42, 43, 44, 57, 68, 126 70 45 46, 47, 66, 120 12 48 87 49 104 4 50 12, 111 51 117 35, 52 35 53 58 7 71 54 92 55 56, 144
IATE Rimini 2017
Hagsten, Eva Hargreaves, Jodie Hernandez, Juan Maria Hern´ andez, Juan M. Hon Snir, Shlomit Hon-Snir, Shlomit Hsouna, Rabiaa Hyder, Kieran
Author Index
57 80 52 34, 58 59 115 60 80
Jacob, Marta Jaffry, Shabbar Jago, Leo Jones, Calvin Jørgensen, Helge
87, 133, 134 10 51 61 127
Kaosa-Ard, Mingsarn Karacuka, Mehmet Klerby, Anna Klijs, Jeroen Korteweg Maris, Diana Kourgniantakis, Markos Kurata, Shohei Kirca, Mustafa
55, 128, 129 62 63 64 64 10 65 30
Langehough, Daniel Leoni, Veronica Li, Gang Li, Shina Lifszyc Friedlander, Anabel Lillo-Ba˜ nuls, Adelaida Lin, Xiang Lin, Yi-Chen Lindoso-Tato, Elvira Liu, Anyu Liu, Chang Lozano, Javier L´ opez-Del-Pino, Francisco
137 66 24, 135, 138 51 59 50, 67 68 69 132 70 136 99 71
Magen, Nathan Maggi, Rico Makumbirofa, Sandra Manera, Carles Mao, Zhenxing Marangon, Franceso Marsiglio, Simone Martinez Mora, Carmen Martinez, Esther Mart´ınez-Garc´ıa, Mar´ıa-Pilar
48 32, 72 73 131 142 28 74 50 98 8
3
IATE Rimini 2017
Masiero, Lorenzo Massidda, Carla Matias, Ant´ onio Maurer, Oswin Medei, Renato Micallef, Brian Mihalic, Tanja Miller, Graham Mitas, Ondrej Moreno-Gil, Sergio Morosan, Cristian Munday, Max Mussoni, Maurizio Nguyen, Van Nijkamp, Peter Nilsson, Jan Olof William Njoya, Eric Tchouamou Nowak, Jean-Jacques Nuccio, Massimiliano Odorici, Vincenza Ognjanov, Benjamin Ogonowska, Malgorzata Ohe, Yasuo Osti, Linda Papatheodorou, Andreas Patuelli, Roberto Payeras, Margarita Pedrana, Margherita Pellegrini, Andrea Peres, Armando Perez Rodriguez, Jorge Vicente Petit, Sylvain Peypoch, Nicolas Pilgrim-Morrison, Sarah Pintassilgo, Pedro Pinto, Patr´ıcia Piras, Romano Poinsot, Flavia Pongpatcharatomtep, Danaitun Porto, Natalia Pratt, Stephen Presutti, Manuela Provenzano, Davide Qiu, Richard
4
Author Index
75, 76 77 92 119 78 11 21, 107 12 64 34 79 61, 80 29, 121 37, 81 16, 120, 122 66 82 90 18 83 84 85 65 28 86 45 87, 134 88 89, 106 3 52 90 91 80 92 92 77 39 129 93 94, 95 83, 96 97 70
IATE Rimini 2017
Qiu, Richard Tr Ramos Mir, Vicente Ramos, Vicente Raya, Josep Rey-Maquieira, Javier Ribaudo, Cristina Ribaudo, Giorgio Richards, Peter Ridderstaat, Jorge Roberts, Annette Roche, Neil Roll, Kristin H Rossell´ o Nadal, Jaume Ruggieri, Giovanni Saayman, Andrea Saayman, Melville Sahli, Mondher Salah, Hatem Sal´ o, Albert Santana Gallego, Maria Santana Gallego, Mar´ıa Sarman, Igor sarman, Igor Sastre, Fran¸cesc Savioli, Marco Scagnolari, Stefano Schuckert, Markus Scuderi, Raffaele Seetaram, Neelu Segota, Tina Shahrabani, Shosh ´ HipOlito ´ SimOn, Singerman, Pablo Skrede, Oddne Slabbert, Elmarie Smeral, Egon Solonandrasana, Bernardin Song, Haiyan Sorokina, Ekaterina Suansri, Potjana Szak´ aly, Orsolya Sziva, Ivett S´ anchez-Cevallos, Estefan´ıa Tam, Pui Sun Tang, Yihong
Author Index
75, 76 129 55, 124, 128 98 99, 124 100 100 118 31 80 80 127 104 101 51, 73, 102, 103, 120 49, 102, 103 19, 60 60 117 104 6 89, 105 32 99 15, 83 106 94 33, 41 53, 82 107 116 67 108 109 49 110 91 24, 136, 138 111 118 112 113 40 114 84
5
IATE Rimini 2017
Tasci, Asli Teitler Regev, Sharon Teixidor, Anna Thomas, Frederic Tokarchuk, Oksana Torre, Dominique Troiano, Stefania Tubadji, Annie Tugores, Maria Tur, Natalia Turner, Lindsay Turrion Prats, Judith Tveteraas, Sigbjorn Tveter˚ as, Ragnar Tveter˚ as, Sigbjørn Untong, Akarapong Ursache, Mara Valle, Elisabeth Vallejo Pousada, Rafael van der Merwe, Peet Vici, Laura Vieru, Markku Viglia, Giampaolo Vilar-Rodr´ıguez, Margarita Viljoen, Armand Vives, Aldric Vroegop, Eva Wander, Paul Wang, Caiping Wanhill, Stephen Wen, Long White, Ryan Wu, Doris Chenguang Wu, Xi Xu, Xu, Xu, Xu,
Chen Hanlin Honggang Yanping
Yang, Yang Zekan, Bozana Zhou, Bo Zhou, Menglin
6
Author Index
12 59, 115, 116 117 118 119 85 28 120, 121, 122 123 124 84 125 42, 126, 127 127 9, 109 55, 128, 129 130 131 132 103 17, 19, 45, 47, 78, 96 43 5, 47 132 102 133, 134 72 54 135 95 136 137 138, 139 140 61 141 135 145 44, 142 143, 144 145 139
IATE Rimini 2017
Zirulia, Lorenzo ¨ Onder, Irem
Author Index
29, 46, 121 56, 144
7
IATE Rimini 2017
Keyword Index
Keyword Index
Abatement Absolute poverty access fees accommodation accountability ADLM bounds test Africa Agglomeration Agritourism Airbnb airline airlines airport Almost Ideal Demand System analysis Arapb Spring archaeology archeotourism Argentina Art museums artificial neural network arts in the market economy asymmetric tourism behavior by seasons Attitude of Host attitude to tax attractiveness attractor Australia
8 141 71 107 14 140 102 109 28 48, 56, 66, 144 86 116 86 102 101 6 137 137 108 78 136 63 110 70 63 48 33 81
Balassa-Samuelson effect Balassa-Samuelson Effect Balearic Balearic Islands Beaches Behavior of medical tourists behavioural economics benchmarking benchmarking partners Big Data Birdwatching booking channel Booking time booking time Bourdain
120, 121 122 52 66, 87, 131 71 55 118 143, 144 143, 144 46 92 41 133 43 137 1
IATE Rimini 2017
business cycle campsite Canary carrying capacity case studycentre-periphery Certified ranking systems CHAID changes in VAT on accommodations children China China regional tourism chinese tourists city tax City Tourism city tourism classification Climate change climate conditions cluster analysis Cmpetitiveness Coastal destinations cointegration Collaborative tourism Common pool resources Communities community competitive markets Competitiveness complex-network analysis computer use Conference congestion Conservation consumer consumer sentiment contingent approach Contingent valuation convergence Core-Periphery corruption Cost-Benefit-analysis Creative industries Crete crime cultural activity Cultural consumption
2
Keyword Index
31 117 52 114 39 130 47 92 44 32 135 84 129 44 56 44, 57 79 12, 126 140 49 91 12 31, 140 66 73, 103 34 135 22 100, 124 97 79 95 71 103 41 54 83 73, 103 69 34 104 98 88 10 104 96 26
IATE Rimini 2017
Keyword Index
cultural gravity Cultural Heritage Cultural proximity cultural proximity Cultural tourism cultural tourism Customer segmentation Daily data Daily Deals Data envelopment analysis Data Envelopment Analysis DEA decision making decomposition degree distribution Deindustrialization Delegates Demand Demand Modeling demographics density forecast destination Destination destination attachment destination card Destination choice destination competitiveness Determinants of innovation Development development Difference-in-difference estimator difference-in-differences approach difference-in-differences method discrete choice discrete choice model Discrete choice modelling Discrete-Continuous choice model displacement distribution dynamics dynamic computable general equilibrium dynamic labor demand dynamic model Dynamic modelling Dynamic panel data Dynamic panel data model dynamic panel data model Dynamic pricing
120 137 121 122 18, 26 57 134 127 21 60 78 60, 143, 144 48 107 58 131 95 133 56 135 139 58 91 105 33 76 111 81 38 101 42 57 44 32 71 10 106 94 69 82 9 125 102 7 127 145 5
3
IATE Rimini 2017
e-examination early booking econometric assessment Econometric models Economic crisis Economic Development economic growth Economic Growth Economic growth economic impact Economic Impact Economic impact analysis Economic Interdependence Economic Legacies economic-impact Ecotourism managers education Efficiency emotions Employees employment Endogenous growth English economy entrepreneurship Environmental and Sustainability Norms Environmental Behavior environmental impact Environmental quality EU EU28 Europe European capital of culture evolutionary patterns in tourism eWOM variance exam and learning performance Excursionism Exogenous quality. Expenditure Behaviour Expenditure-based segmentation experience goods Experiential tourism exports externalities Fake reviews family family transmission
4
Keyword Index
25 43 11 37 16 61 19, 114 74 30 94 61 64 24 51 98 13 123 4, 60, 78 116 77 123 8 80 96 85 92 17 8 130 97 41 57 132 47 25 18 46 28 49 54 87, 124 51 23, 40 47 32 15
IATE Rimini 2017
Keyword Index
FIFA film festival Firms Florida forecast combination technique Foreign direct investment Foster-Greer-Thorbecke (FGT) France Free attendance fsQCA
51 96 77 12 139 51 82 91 26 91
gambling game theory gastronomic tourism gastronomy Generaton Y Gini index Globalisation GMM GMM estimators Governance governance Government failures Government Intervention Granger causality gravity model growth
14 118 112 112 113 107 24 35 125 35 86 99 85 31 97, 104 45, 52
Habit persistence and word-and-mouth effect hedonic technique hiking-tourism Hofstede’s cultural dimensions Holiday memory Hong Kong Hong Kong tourism demand hospitality hospitality industry Hospitality Management Programs Hospitality sector hot springs resort Hotel chains hotel heights hotel industry hotel performance Hotel performance Hotel prices Hotel revenue management hotel room pricing
7 117 98 122 72 94, 138 139 9 15 13 127 65 100 11 22, 83 15, 21 5 29 133 43
5
IATE Rimini 2017
Hotel sector Hotels hotels Hotels and Restaurants Housing rental market hybrid IATE Immigration Impact Impact of tourism on retail inclusive tourism income income elasticity of tourism demand income inequality Incoming Independent tourist Individual preferences Industrialization information technology Innovation innovation Innovation process innovation – innovative communication innovative product Input-output Input-output analysis input-output model intention to move Interaction effects intermediation International demand international tourism International tourism arrivals International tourism demand International tourism expenditure international tourist international travel internet distribution Interrelated choices Intersectoral interval forecasts Intrasectoral Inverse demand functions investment in tourism Investments islands
6
Keyword Index
134 60, 100 79, 132 77 66 136 95 77 20 64 118 27 68 93 4 59 10 131 25 37 112, 137, 145 81 39 113 112 50 80 94 105 7 21 100 104 141 7 141 49 79 21 106 50 139 50 36 11 42 101
IATE Rimini 2017
Keyword Index
Israel Italy
116 73
Japanese accommodations Job satisfaction
65 67
Kapetenious unit root test Kenya
30 82
Labour labour conditions Labour scheduling system Landscape last minute Latent holiday budget latent profile analysis latent variables modeling learning by doing Leisure Activities Length of Stay Lifecycle linguistic distance linkages literature review location effect Logistic regression long-haul travel low-cost carrier
61 123 127 28 43 89 79 105 52 34 106 16 122 82 45 117 81 75 94
Macao macroeconomic impact Maki cointegration managerial judgment market competition Market failures market segment market segmentation mass tourism mass tourism destinations Medical tourism meta-analysis micro-simulation migration moderating factors money market conditions Morocco motivation Mozambique
114 11 30 143 23 99 52 49 132 17 55 45 82 97, 120 119 110 38 25 73
7
IATE Rimini 2017
Multiple discrete-continuous Museums music festival natural and built amenities nature tourism Netherlands network formation model New Environmental Paradigm non-parametric methods non-tradable services nonlinear Nonlinear Model Nordic countries Offshoring oleotourism – ompetence-building online booking online reviews onsen Open economy operational challenges ordered logit model organizational change. Outbound tourism demand Output growth overnight stays Own-price elasticity P2P platform Panel data panel data Panel Data Analysis. Panel quantile regression Past travel experiences Penalty Reward Analysis permanent income hypothesis Policy Poverty poverty poverty reduction precautionary saving Present value of the past Price flexibilities Price optimization Price variation Pricing
8
Keyword Index
89 18, 26 63 93 115 64 58 92 69 122 136 138 126 50 39 15 43 48, 142 65 8 111 142 15 30 42 44, 57 133, 134 66 35, 42, 109, 125, 126 9 62 141 76 128 27 20 20, 53 82 118 110 72 36 134 134 133
IATE Rimini 2017
Keyword Index
pricing policy Pricing strategy pricing strategy Pro-Poor Tourism. product bundling Product Heterogeneity Productivity propensity score matching estimator Prospect theory protected areas protection psychological factors Public Choice public funding of the arts Public Goods push-pull factors
117 46 54 53 22 85 37, 60 44 76 71 137 110 85 63 70 105
QR theory quality
59 22, 23, 90
Real exchange rates Recreational sea angling Regional demand Regional forecasting regional tourism regulation religious distance Reputation Residents heterogeneity Revenue Management Rif Mountain Rural area ryokan
30 80 126 84 145 23 120 47 85 5 38 87 65
Satisfaction Satisfaction with life (SWL) Scuba diving Search query data Seasonal time series seasonality seasonality markets second-home destinations SEM sentimental analysis Service and Marketing innovation Service Economy service firms Service productivity
128 72 73 136 26 107, 117 125 105 119 142 81 131 83 127
9
IATE Rimini 2017
Sharing Economy sharing economy signalling Ski lifts sleep quality Slovenia small islands smart destination Smart Hotels Smart tourism Smooth Transition Model SMTEs Social Network Analysis Social representations theory social responsibility South Africa sp experiment Spa spa Spain Spain XXth century Spanish spas spatial autocorrelation Spatial Demand model Spatial Dependency spatial econometrics spatial regression spatial spillovers Spillover effects Sporting events Staffing mismatch stimuli-response model Stochastic frontier stochastic kernel Stop-over destination strategic orientation strong sustainability Structural Change Structure-Conduct-Performance paradigm supply network Sustainability sustainability sustainability development sustainable development Sustainable Hospitality sustainable tourism Sustainable Tourism
10
Keyword Index
56, 66 48, 144 54 42 142 107 31 113 10 88 138 111 34 12 135 51, 103 32 128 65 7, 67 132 125 132 93 126 62 65 40 40 109 51 127 129 89 69 75 83 14 74 21 58 38 101 14 130 13 17 85
IATE Rimini 2017
Keyword Index
Switzerland Terrorism terrorism Terrorist Attacks Thailand Third type price discrimination Time series econometrics time-varying cointegration model TLG hypothesis total factor productivity Tourism tourism tourism and hospitality Tourism Area Life Cycle Tourism attractions Tourism carrying capacity tourism climatic index tourism concentration tourism demand Tourism Demand Tourism demand tourism demand cycle tourism demand forecasting Tourism Demand Modelling tourism destination authority Tourism destinations Tourism Development Tourism economic impact Tourism Economics Tourism Economics Association Tourism expenditure Tourism expenditure forecasting Tourism expenses tourism impact Tourism industry Tourism legacies tourism markets convergence hypothesis Tourism Meetings Tourism performance Tourism Policy tourism regional development Tourism Satellite Accounts Tourism Seasonality tourism services Tourism Specialization tourism specialization tourism suppliers
68 6 104 62 55, 129 121 6 68 19 145 8, 12, 35, 38, 60, 121, 125 23, 45, 96, 97, 101, 114, 116, 120, 130 123 74 78 8 140 40 27, 44, 107, 140 24, 36, 62 18, 102 31 136 138 86 88 70 80 85 95 16, 34 84 59 119 67, 137 51 69 108 91 108 93 61 99 90 74 90 111
11
IATE Rimini 2017
Tourism supply tourism supply Tourism Supply Tourism workers tourist activity tourist arrival Tourist Arrivals tourist behavior tourist destination tourist enterprises tourist evaluation Tourist expenditure tourist mobility Tourist satisfaction Tourist services tourist spending Tourist typology tourist’s movements Tourist-Host Relationship trade transaction costs Transportation mode Travel agencies Travel personality Trentino trustworthiness Tunisia Turkey
Keyword Index
77 11, 132 24 67 32 69 6 75 111 14 17 89 33 124 50 49 115 58 70 90 86 106 4 76 33 48 60 30
upper echelons theory Urban tourism Utility Maximization
135 115 70
Value Chain Analysis value creation vector error correction model vertical expansion Vertical integration virtual benchmark visitor attractions
53 22 19 11 4 144 40
war weak sustainability wealth Weather forecasts web-based e-learning weights WGI
12
116 14 27 29, 46 25 143 35
IATE Rimini 2017
Keyword Index
Wildlife tourism willingness to pay Willingness to pay Winter tourism word-of-mouth workforce scheduling
103 71 10, 116 29, 42, 126 54 9
13
IATE Rimini 2017
Table of Contents
Table of Contents The IATE: Ten years of a successful partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Eugeni Aguil´ o
1
Who is the ideal tourist and why should economists care? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Larry Dwyer
2
International trends and tourism policy in OECD countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Armando Peres
3
Decision-making, strategies and performance evaluation of Italian travel agencies . . . . . . . . . Graziano Abrate, Clementina Bruno, Fabrizio Erbetta and Giovanni Fraquelli
4
Ride on the roller-coaster. The impact of dynamic pricing on hotel performance . . . . . . . . . . Graziano Abrate and Giampaolo Viglia
5
Is Spain benefiting from the Arab Spring? On the impact of terrorism on a competitor country . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Julio Angel Afonsor Rodr´ıguez and Mar´ıa Santana Gallego
6
A nonlinear dynamic model to international tourism demand in Spanish Mediterranean coast. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Isabel Albaladejo and Maribel Gonz´ alez-Mart´ınez
7
Tourism, environment and growth in an economy with pollution abatement activities . . . . . Isabel Albaladejo, Mar´ıa-Pilar Mart´ınez-Garc´ıa and Fuensanta Arnaldos
8
Labour Demand Flexibility: Do Strategy and Room Capacity Matter?. . . . . . . . . . . . . . . . . . . . Fikru Alemayehu and Sigbjørn Tveter˚ as
9
Examination of Individual Preferences for Smart Hotels in Crete . . . . . . . . . . . . . . . . . . . . . . . . . 10 Alexandros Apostolakis, Markos Kourgniantakis and Shabbar Jaffry Assessing the macroeconomic impact of extending hotel height limitations . . . . . . . . . . . . . . . . 11 Silvio Attard and Brian Micallef Climate Change Denial and Social Representations: The Case of Florida’s Coastal Destinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Roberta Atzori, Alan Fyall, Jill Fjelstul, Asli Tasci and Graham Miller A Strategic Program to Educate the Next Generation of Sustainable Hospitality Managers 13 Dr John Avella Tourism, ”game” and sustainability: myths and paradoxes of accountability . . . . . . . . . . . . . . 14 Maria Gabriella Baldarelli TRANSMISSION OF COMPETENCIES AND HOTEL PERFORMANCE IN A MATURE TOURISM DESTINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Patrizia Battilani, Francesco Barbini and Marco Savioli Tourism Consumption Behaviour of Italian Households in the Crisis Time . . . . . . . . . . . . . . . . 16 Cristina Bernini, Maria Francesca Cracolici and Peter Nijkamp Visitor expectations and perceptions of sustainability in a mass tourism destination . . . . . . 17 Cristina Bernini and Laura Vici 1
IATE Rimini 2017
Table of Contents
Factors affecting excursionists’ museum attendance: evidence from Abbonamento Musei Torino Piemonte 2005-2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Enrico Bertacchini, Massimiliano Nuccio and Alessandra Durio Tourism-led Growth Hypothesis in New Zealeand: a country specific approach . . . . . . . . . . . . 19 Giuliano Bianchi, Mondher Sahli and Laura Vici Tourism and Poverty Alleviation: Tools and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Adam Blake Daily Deals in the Hotel industry: an S-C-P perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Miha Bratec, Larry M. Dwyer and Tanja Mihalic All-inclusive and value creation: evidence from the Balearic Islands . . . . . . . . . . . . . . . . . . . . . . . 22 Aleix Calveras Competition and the quality of a tourism destination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Aleix Calveras Tourism and Economic Globalisation: A Review of Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Zheng Cao, Gang Li and Haiyan Song The impact of e-learning and e-examination on the gained knowledge of students of Tourism Economics courses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Matteo Maria Cati How free admittance affects charged visits to museums: An analysis of the Italian case . . . 26 Roberto Cellini and Tiziana Cuccia INCOME, WEALTH, AND TOURIST CONSUMPTION: A TESTING OF THE PERMANENT INCOME HYPOTHESIS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Yong Chen and Giuliano Bianchi Landscape attributes and expenditure behaviour during agritourism vacations: An exploratory study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Lucia Cicero, Franceso Marangon, Linda Osti and Stefania Troiano Weather forecasts accuracy and tourism prices: an empirical investigation on Italian ski resorts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Simona Cicognani, Maurizio Mussoni and Lorenzo Zirulia Determinants of tourism demand: How do price and income variables affect Turkish outbound travelers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 ˙ Inci Oya Co¸skun and Mustafa Kirca THE EFFECTS OF BUSINESS CYCLES ON TOURISM DEMAND FLOWS IN SMALL ISLAND DESTINATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Robertico Croes and Jorge Ridderstaat Children’s preferences as drivers for family leisure choices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Riccardo Curtale, Igor sarman and Rico Maggi ”Tell me what you do”: mapping tourist behaviour in time and space from tourist card data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Chiara Dalle Nogare and Raffaele Scuderi 2
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Understanding tourists’ leisure expenditure in the destination: a social network analysis . . 34 Tatiana David Negre, Juan M. Hern´ andez and Sergio Moreno-Gil Does good governance attract tourists? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Claudio Detotto, Sauveur Giannoni and Claire Goavec A Price-Dependent Demand System: An Alternative Approach to Model Tourism Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Sarath Divisekera INNOVATION AND FIRM PRODUCTIVITY: EVIDENCE FROM AUSTRALIAN TOURISM BUSINESSES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Sarath Divisekera and Van Nguyen Tourism economics and sustainable development in Moroccan Rif mountains . . . . . . . . . . . . . 38 Mohammed El Fengour Innovation and oleotourism: a theoretical analysis applied in the southern region of Buenos Aires (Argentina) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Silvina Elias, Andrea Barbero and Flavia Poinsot Testing the presence of spatial spillovers in visitor attractions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Juan Luis Eugenio-Martin and Estefan´ıa S´ anchez-Cevallos Modelling booking channel selection. Evidence from European level data . . . . . . . . . . . . . . . . . 41 Martin Falk and Raffaele Scuderi Returns on investments: The downhill skiing story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Martin Falk and Sigbjorn Tveteraas Online booking channels allow for last-minutes bargains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Martin Falk and Markku Vieru The causal effect of VAT and city taxes on overnights stays in European cities . . . . . . . . . . . 44 Martin Falk and Yang Yang Tourism and Growth: A Review and Meta-Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Elvira Fetahu, Roberto Patuelli and Laura Vici Booking in the rain. The impact of weather forecast on the pricing strategy of hotels . . . . . 46 Paolo Figini, Simona Cicognani and Lorenzo Zirulia On noise and difficult convergence of non-certified review systems. It is like rolling a dice. 47 Paolo Figini, Laura Vici and Giampaolo Viglia The Role of Personal Photos in Generating Trust on Airbnb . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Aliza Fleischer, Eyal Ert and Nathan Magen Who are the big spenders travelling to South Africa? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Alicia Fourie, Melville Saayman and Elmarie Slabbert Offshoring of Services as a Competitive Strategy in the Tourism Industry . . . . . . . . . . . . . . . . . 50 ˜ Fuster, Adelaida Lillo-Ba˜ BegoNa nuls and Carmen Martinez Mora The economic legacies of the 2010 FIFA World Cup in South Africa . . . . . . . . . . . . . . . . . . . . . . 51 Mar´ıa Santana Gallego, Shina Li, Andrea Saayman and Leo Jago 3
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Market-segment targeting and long-term growth in a tourism-based economy . . . . . . . . . . . . . 52 Sauveur Giannoni, Juan Maria Hernandez and Jorge Vicente Perez Rodriguez The Tourism Value Chain and The Prospects of Pro Poor Tourism.. . . . . . . . . . . . . . . . . . . . . . . 53 Babul Thomas Gomes, Adam Blake and Neelu Seetaram Word-of-mouth communication and reviewer sentiment as indicators of quality in tourism 54 Carla Guadalupi and Paul Wander BEHAVIOR OF MEDICAL TOURISTS IN THAILAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Kansinee Guntawongwan, Vicente Ramos, Akarapong Untong and Mingsarn Kaosa-Ard Determinants of Airbnb Demand in Vienna and its Implications for the Local Hotel Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 ¨ Ulrich Gunter and Irem Onder Measuring the impact of the European Capital of Culture programme on overnight stays: Evidence for the last 20 years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Eva Hagsten and Martin Falk A growing model for the lodgings and services network in a destination . . . . . . . . . . . . . . . . . . . 58 Juan M. Hern´ andez and Christian Gonz´ alez Micro-economic determinants of FIT-tourist expenditures in Israel . . . . . . . . . . . . . . . . . . . . . . . . 59 Shlomit Hon Snir, Sharon Teitler Regev and Anabel Lifszyc Friedlander Productivity, efficiency and its determinant factors in the Tunisian hotel sector . . . . . . . . . . 60 Rabiaa Hsouna, Mondher Sahli and Hatem Salah Understanding the Impact of Tourism on National Economic Development: The Potential of Tourism Satellite Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Calvin Jones, Chen Xu and Max Munday THE EFFECTS OF TERRORIST ATTACKS ON DESTINATION PREFERENCES OF DOMESTIC AND FOREIGN TOURISTS: A SPATIAL TOURISM ANALYSIS IN TURKEY’S SUB-REGIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Mehmet Karacuka and Necmettin Celik ”Visitors’ attitude to public funding of a non-profit music festival” The case of the Peace & Love-music-festival, Sweden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Anna Klerby The impact of tourism on retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Jeroen Klijs, Joppe Curvers, Ondrej Mitas and Diana Korteweg Maris Competitive Structure of Accommodations in A Japanese Onsen (Hot Springs) Resort Area: A Spatial Econometric Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Shohei Kurata and Yasuo Ohe Fast and furious? The impact of AirBnB in an important tourism destination: the case of Balearic Islands. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Veronica Leoni, Paolo Figini and Jan Olof William Nilsson Examining the Determinants of Job Satisfaction among Tourism Workers . . . . . . . . . . . . . . . . . 67 ´ and HipOlito ´ ´ Adelaida Lillo-Ba˜ nuls, Jose Manuel Casado-DIaz SimOn 4
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Income elasticity of tourism demand over seven decades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Xiang Lin and Martin Falk Is there evidence for the tourism destinations convergence hypothesis in the cross-country setting? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Yi-Chen Lin and Wen-Shuenn Deng To Love or To Hate –The Investigation of the Attitude of Host to Tourism Development using a Utility Maximization Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Anyu Liu, Richard Qiu and Daisy Fan Pricing congestion on a beach. Analysis of an access fee to the protected island of Lobos (Canary Islands) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Francisco L´ opez-Del-Pino and Jos´e-Mar´ıa Grisol´ıa-Santos The present value of the past: evidence on vacation memories and satisfaction with life . . . 72 Rico Maggi and Eva Vroegop Willingness to pay for common pool resources: A comparison between Ponta do Oura and Portofino . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Sandra Makumbirofa and Andrea Saayman On the Implications of Tourism Specialization and Structural Change in Tourism Destinations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Simone Marsiglio An analysis of long-haul tourist preferences for stop-over destination visits . . . . . . . . . . . . . . . . 75 Lorenzo Masiero and Richard Tr Qiu Reference-dependent Behavior in Destination Choice: Stated Choice Experiment for Long-haul Leisure Travels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Lorenzo Masiero and Richard Tr Qiu The relationship between immigration and tourism supply: the case of Hotels and Restaurants in Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Carla Massidda, Ivan Etzo and Romano Piras FOOTHOLD ON TODAY, OUTLOOK FOR TOMORROW: A DATA ENVELOPMENT ANALYSIS OF MOST VISITED GLOBAL ART MUSEUM . . . . . . . . . . 78 Renato Medei and Laura Vici U.S. TRAVELER CLASSIFICATION BASED ON THEIR COMPUTER USE IN HOTELS ABROAD: INSIGHT FROM A LATENT PROFILE ANALYSIS . . . . . . . . . . . . . . . 79 Cristian Morosan and Agnes Defranco Recreational sea angling and its significance to the English economy? . . . . . . . . . . . . . . . . . . . . 80 Max Munday, Annette Roberts, Neil Roche, Kieran Hyder, Mike Armstrong, Adam Brown, Sarah Pilgrim-Morrison and Jodie Hargreaves DETERMINANTS OF INNOVATION IN TOURISM: THEORY AND EVIDENCE . . . . . . 81 Van Nguyen and Sarath Divisekera Tourism Linkages, Income Inequality and Poverty Alleviation in Kenya: A Dynamic CGE Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Eric Tchouamou Njoya and Neelu Seetaram 5
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Contingent effects of strategic orientation on performance: Evidence from the hotel industry in Rimini . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Vincenza Odorici, Manuela Presutti and Marco Savioli Forecasting International Tourism Regional Expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Benjamin Ognjanov, Yihong Tang and Lindsay Turner Heterogeneous residents and sustainable tourism development . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Malgorzata Ogonowska and Dominique Torre Exploring the Dynamics in the Airline - Airport - Tourism Destination Authority Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Andreas Papatheodorou DOES THE HOTEL SUPPLY TAKE ADVANTAGE OF THE OPPORTUNITIES OF EXPERIENTIAL TOURISM? A CASE STUDY IN SOLLER, A RURAL AREA IN THE BALEARIC ISLANDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Margarita Payeras, Marta Jacob and Carmen Florido Smart tourism and creative tourism. A model of interpretation. . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Margherita Pedrana Stochastic frontier estimation of holiday budgets for Multiple Discrete-Continuous Extreme Value model: An application to tourist expenditure analysis . . . . . . . . . . . . . . . . . . . . . 89 Andrea Pellegrini and Igor Sarman Tourism specialization across qualities in Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Sylvain Petit and Jean-Jacques Nowak Re-examining French tourism performance with fsQCA: a regional perspective . . . . . . . . . . . . 91 Nicolas Peypoch and Bernardin Solonandrasana Environmental Attitudes of Birdwatchers: A case study in Portugal . . . . . . . . . . . . . . . . . . . . . . 92 Pedro Pintassilgo, Patr´ıcia Pinto, Andreia Sofia Costa, Ant´ onio Matias and Maria Helena Guimar˜ aes Income inequalities and tourism development in Argentina: a regional approach . . . . . . . . . . 93 Natalia Porto and Natalia Espinola Economic Impact of low-cost carrier in a saturated transport market: Net benefits or zero-sum game? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 Stephen Pratt and Markus Schuckert International Association for Tourism Economics (IATE) Conferences: A History . . . . . . . . . 95 Stephen Pratt and Stephen Wanhill Film festivals as a cultural and entrepreneurial source for local development: Il Cinema Ritrovato case study. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Manuela Presutti, Francesco Barbini, Cristina Boari and Laura Vici The migration-tourism nexus in the EU28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Davide Provenzano Economic and social yield of investing in hiking tourism: The case of Bergued`a, Catalonia, Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Josep Raya, Esther Martinez and Dolors Celma 6
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The economic rationale for Government intervention to reduce seasonality . . . . . . . . . . . . . . . . 99 Javier Rey-Maquieira, Fran¸cesc Sastre and Javier Lozano Questioning the value of hotel chains with regards to international sales . . . . . . . . . . . . . . . . . 100 Giorgio Ribaudo and Cristina Ribaudo Tourism development in UNESCO Natural Heritage Sites.The case of Sicilian volcanic sites: Mount Etna and Aeolian Islands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Giovanni Ruggieri and Francisco J. Calderon Vazquez Africa’s Outbound Tourism – An Almost Ideal Demand Perspective . . . . . . . . . . . . . . . . . . . . . . 102 Andrea Saayman, Melville Saayman and Armand Viljoen Counting the lion’s mane – a tourism perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Melville Saayman, Andrea Saayman and Peet van der Merwe Fatal attraction: How terrorism, crime and corruption hurt tourism . . . . . . . . . . . . . . . . . . . . . . 104 Maria Santana Gallego, Jaume Rossell´ o Nadal and Johan Fourie Integrating push-pull factors and destination attachment in a latent variable model for second-homeowners’ intention to move . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105 Igor Sarman and Adam Czarnecki The relationship between length of stay and transportation mode in the tourism sector: a discrete-continuous analysis of Swiss data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 Stefano Scagnolari and Andrea Pellegrini Elicitation of tourist accommodation demand for counter-seasonal responses: evidence from the Slovenian Coast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Tina Segota and Tanja Mihalic The Economic Observatory of Meetings Tourism of the Argentine Republic . . . . . . . . . . . . . . . 108 Pablo Singerman Agglomeration Effects in the Norwegian Tourism Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109 Oddne Skrede and Sigbjørn Tveter˚ as Variations in seasonal asymmetric tourism behavior across the business cycles . . . . . . . . . . . . 110 Egon Smeral Exploring unique challenges of small and medium tourism enterprises . . . . . . . . . . . . . . . . . . . . . 111 Ekaterina Sorokina, Robertico Croes and Alan Fyall Gastronomic tourism and street food as an innovative product of Budapest . . . . . . . . . . . . . . . 112 Orsolya Szak´ aly Smart destinations for smart Generation? – The requirements of Generation Y in the area of innovative communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Ivett Sziva TOURISM AND ECONOMIC GROWTH: CASE OF A RESOURCE-STRICKEN TOURIST DESTINATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Pui Sun Tam 7
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Factors affecting tourists’ preferences for urban or nature destinations in international and domestic tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 Sharon Teitler Regev and Shlomit Hon-Snir Willingness to pay for airline security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Sharon Teitler Regev and Shosh Shahrabani The effect of public and private goods and services on campsite pricing: empirical approach in Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117 Anna Teixidor, Albert Sal´ o and Anna Garriga Game theory insights in the debate on the role of tourism as a development tool . . . . . . . . . . 118 Frederic Thomas, Peter Richards and Potjana Suansri Residents’ quality of life and support for tourism development: the role of moderating factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 Oksana Tokarchuk and Oswin Maurer Religious Proximity as a Factor for Outbound Tourist Choice Destination: Impacts for Productivity and Migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120 Annie Tubadji, Paolo Figini, Peter Nijkamp and Andrea Saayman Balassa-Samuelsson Effect, Culture and Pricing. The Case of Lonely Planet Tourist Guidebooks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Annie Tubadji, Maurizio Mussoni and Lorenzo Zirulia Linguistic Proximity in Tourist Destination Choice and the Balassa-Samuelson Effect: A Regional Economics Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 Annie Tubadji and Peter Nijkamp Labour market insertion of young people in the hospitality and tourism sector . . . . . . . . . . . . 123 Maria Tugores What impact is Experiential Tourism having on Competitiveness? . . . . . . . . . . . . . . . . . . . . . . . . 124 Natalia Tur, Javier Rey-Maquieira and Vicente Ramos Seasonality determinants for the main markets in Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Judith Turrion Prats and Juan Antonio Duro Moreno Regional Divergence in Nordic Winter Tourism Demand Growth. . . . . . . . . . . . . . . . . . . . . . . . . . 126 Sigbjorn Tveteraas and Martin Falk Staff Workload Mismatch and Service Productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Sigbjorn Tveteraas, Kristin H Roll, Ragnar Tveter˚ as and Helge Jørgensen The Factor Structure of Spa Satisfaction: a Penalty-Reward Analysis . . . . . . . . . . . . . . . . . . . . 128 Akarapong Untong, Vicente Ramos and Mingsarn Kaosa-Ard A Stimuli-Response Decision Model for Chinese Travelers to Thailand . . . . . . . . . . . . . . . . . . . . 129 Akarapong Untong, Vicente Ramos Mir, Danaitun Pongpatcharatomtep and Mingsarn Kaosa-Ard EUROPEAN TOURISM: A CENTRE – PERIPHERY PERSPECTIVE . . . . . . . . . . . . . . . . . . 130 Mara Ursache 8
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Industry and services in Baleares, 1950-2015: regional deindustrialization in a tourism economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 Elisabeth Valle and Carles Manera The Tourism Economy in Spain, 1900-1939: New sources, new methodologies and new results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132 Rafael Vallejo Pousada, Elvira Lindoso-Tato and Margarita Vilar-Rodr´ıguez Online Hotel Demand Model and Own-Price Elasticities in a Mature Resort Destination . . 133 Aldric Vives, Marta Jacob and Eugeni Aguil´ o Price Variation Sources, Customer Segmentation, and Price optimization Methods in the Hotel Sector: A Critical Review of the Literature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 Aldric Vives, Marta Jacob and Margarita Payeras Social responsibility toward community and small tourism enterprises’ performance: the moderating effects of owners’ demographics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Caiping Wang, Honggang Xu, Gang Li and Jason Li Chen Forecasting Tourism Demand Using Search Query Data: A Hybrid Modelling Approach . . 136 Long Wen, Chang Liu and Haiyan Song Past Unknown: Living Archaeological Digs as a Stimulus to Tourism Ryan White and Daniel Langehough (under dir. of Prof. R. Alden Smith) Baylor University . . . . . . . . . . . . . . . 137 Ryan White and Daniel Langehough Tourism Demand Modelling – A Nonlinear Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Doris Chenguang Wu, Jason Li Chen, Gang Li and Haiyan Song Is forecast combination a choice when interval forecasts are required? . . . . . . . . . . . . . . . . . . . . . 139 Doris Chenguang Wu and Menglin Zhou The Impact of UK’S Climate Conditions on Inbound Tourism Demand from Italy . . . . . . . . 140 Xi Wu, Shuang Cang and Adam Blake The Different Effects between Tourism Arrivals and Receipts on Poverty Alleviation: A Panel Quantile Regression Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Hanlin Xu Sleepless nights in hotels? Understanding guests’ sleep quality from online reviews . . . . . . . 142 Yang Yang and Zhenxing Mao The Impact of the Managerial Judgment in Benchmarking of Cities: Does It Make a Difference in the End? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 Bozana Zekan Benchmarking of Airbnb Providers: How Competitive Are European Cities? . . . . . . . . . . . . . . 144 ¨ Bozana Zekan, Irem Onder and Ulrich Gunter Tourism development and regional productivity efficiency: evidence from southwest China 145 Bo Zhou and Yanping Xu
9
The IATE: Ten years of a successful partnership Eugeni AguilĂł*
The growth in the number of publications in Economics of Tourism since the second half of the nineties has been extraordinary. Economists with long expertise in applications to tourism, and others who were coming from other economic fields joined and contributed to the study of Tourism Economics. The exchange of ideas between teachers and researchers of the University of the Balearic Islands and scholars of other universities who were teaching in the Master in Tourism and Environmental Economics (MTEE) at UIB led us to create the International Association for Tourism Economics – IATE. The initial discussion did not centre on the need, by part of the economists, on whether or not to accept epistemological issues such as the multidisciplinarity. On the contrary, it was a question of finding a common space that would give continuity and room to the relevant growth of the economic analysis of tourism, in order to share knowledge and concretely collaborate within the wide limits of the economic science. The increasing success of the biennial conferences is an important signal showing that we are before a very significant initiative and for which many colleagues of the University of the Balearic Islands spent time and effort for creating a mechanism of transmission of a very widespread feeling.
* Emeritus Professor, University of Balearic Islands
WHO IS THE IDEAL TOURIST AND WHY SHOULD ECONOMISTS CARE? Larry Dwyer*
Abstract Increasing attention is being given to identifying the characteristics of the ‘ideal tourist’. While no single definition has the support of all researchers, attributes of the ‘ideal tourist’ commonly advanced include features such as ‘high spending’, ‘responsible’, ‘caring’, ‘involved’, ‘environmentally aware’, ‘culturally sensitive’, ‘seeking meaningful social encounters’ and so on. It is argued that different economic measures serve different purposes, and in any case, are insufficient to specify the ‘ideal tourist’. A framework for identifying important social and environmental behaviours is presented which, taken together with economic measures, advance both the concept of the ideal tourist and its measurement into the ‘sustainability’ arena. Some potential evaluation techniques are discussed as are the underlying challenges to operationalise a concept of ‘sustainable yield’. The paper concludes with a discussion of the implications of the ‘ideal tourist’ concept for tourism marketing, planning and strategy.
Professor, Faculty of Economics, University of Ljubljana, Slovenia. Adjunct Professor, Griffith Institute for Tourism, (GIFT) Griffith University. Honorary Professor, School of Marketing, Australian Business School, University of New South Wales. Board Chair, International Academy for the Study of Tourism. International Advisory Board and former President, International Association for Tourism Economics. *
International trends and tourism policy in OECD countries Armando Peres*
Abstract Tourism has undergone tremendous evolution over the last few decades, covering both the structure of the industry and its supply chain and the size, origin and behaviour of the travellers-tourists. Above all, given the sector's growth scenario that by 2030 will bring us to nearly 2 billion international travellers worldwide. Demographic change, rising inequality, climate impacts, globalization, digitalisation, increasing mobility, geopolitical factors, working / leisure time balance, safety and security are some of the important factors and trends that have fundamentally changed the environment for tourism in the last two decades and that will continue to change it in years to come. In this framework the OECD Tourism Committee acts to identify and stimulate efficient and effective market-oriented tourism policies to maximise economic, environmental, social and cultural benefits of tourism also supporting countries in integrating tourism into the broader policy framework. Moreover the OECD provides inputs on global tourism trends and challenges and on policy options to enhance competitiveness in tourism also by supporting a new approach to measure competitiveness. After illustrating the major international changes of the tourist industry and after discussing the main challenges today for the competitiveness of destinations, the main areas on which the OECD is currently working will be illustrated such as the issues of security, of quality jobs, of financing approaches for tourism SMEs or of the opportunities arising from a greater collaboration between tourism and creative industries. Finally, some considerations on the Italian system will be discussed, also in relation to the implementation of the recent national Strategic Plan for Tourism.
* Chair Tourism Committee OECD
Decision-making, strategies and performance evaluation of Italian travel agencies Graziano Abrate, University of Eastern Piedmont1* Clementina Bruno, University of Eastern Piedmont Fabrizio Erbetta, University of Eastern Piedmont Giovanni Fraquelli, University of Eastern Piedmont
Abstract The evolution of tourism supply chain poses severe challenges to the business model of the traditional travel agencies. The profitability of the latter has been threatened both by the economic crisis and, especially, by the diffusion of ICT. The digitalization of market relationships led to a sort of cannibalization of traditional travel agencies that operate physically on the market and have face-to-face contacts with the clients. Given these premises, the study develops a conceptual framework to analyse the strategic opportunities that traditional operators might pursue to face such challenges. Building on theoretical literature, the paper identifies three strategies that may help traditional travel agencies defend their economic performance: higher involvement in incoming tourism, higher degree of vertical integration, and belonging to a network of agencies. From the methodological point of view, this study uses a frontier type method, which has become increasingly prevalent in benchmarking firm performance in tourism and hospitality literature. More specifically, the study uses a twostage approach estimating operating efficiency in the first stage through the Data Envelopment Analysis (DEA) methodology, and in the second stage, regressing the estimated efficiency scores on a set of explanatory variables to investigate which drivers affect firm performance. The empirical analysis focuses on the Italian travel agencies context, with a dataset including 117 firm-level yearly observations. The findings highlight the efficiency-enhancing impact of vertical integration with tour operator activities and the improved operational performance of travel agencies focusing on incoming tourism. It seems reasonable that the least efficient units exploit these strategic levers to improve their competitive position. On the contrary, results provide no empirical support for being part of a network. One possible explanation for such finding might be the relatively small size of networks operating in Italy. In this regard, future research could investigate whether belonging to a large network generates a different effect compared to membership of medium or small networks.
1
Via Perrone 18, 28100 Novara – Italy. Email: graziano.abrate@uniupo.it
Ride on the roller-coaster. The impact of dynamic pricing on hotel performance Abrate Graziano, University of Eastern Piedmont* Viglia Giampaolo, University of Portsmouth
Abstract As hotel rooms are a perishable service, designing rates’ temporal profile to maximize revenues is of paramount importance. This paper presents specifically an analysis on the additional revenue, measured in term of Revenue per Available Room (RevPar), due to the extent of the application of dynamic pricing strategies. The underlying hypothesis is that the more hotels make use of dynamic pricing strategies, operationalized through inter-temporal price variations, the more they increase their RevPar. The empirical analysis use daily information on a sample of 821 hotels from 18 major European cities. Data are collected for 4 consecutive weeks in April 2016 (thus, 28 booking dates for each hotel). The final dataset matches two sources of information: public information available on the web and the access to a database offered by STR data center, an organization specialized in hotel data storage for academia and business. For what concerns web-based information, the selected source was one popular online search engine (booking.com) and the data collection process started at the beginning of February 2016. In particular, an ad-hoc electronic spider collected data by simulating the booking process different days in advance. This methodology allows to collect price changes while approaching the booking date. In this respect, for each hotel and date we computed the coefficient of variation as a proxy of the use of dynamic pricing strategy. Together with prices, data concerning the average online review score as well as the number of reviews were recorded. Daily hotel performance data provided by STR Share Center were then matched with the web-based information. In particular, the database was integrated with information on the amount of rooms sold per day (daily occupancy rate) and the corresponding revenues (measured by the RevPar, i.e. the revenues per available room). The process of data matching was anonymized by STR. By means of panel data regression models, the paper investigates the determinants of occupancy and revenues. The proposed model deals with the endogeneity problem in the causal relation performance-price. Preliminary results show that price variability boosts both the occupancy rate and the revenues, thus providing support to the practice of dynamic pricing. All models include controls for city dummies, hotel category and date. The effectiveness of dynamic pricing in increasing hotel performance is a central problem of revenue management strategies. This question has been largely overlooked in previous studies, *
Via Perrone 18, 28100 Novara – Italy. Email: graziano.abrate@uniupo.it
often due to the poor availability of disaggregated performance data. Thanks to a unique dataset this paper answers to a neat question: what is the impact of inter-temporal price changes on hotel revenues? The findings suggest that, on average, price variability measured through the coefficient of variation has a positive impact on hotel performance (e.g., RevPar). Results are robust across difference specifications. Findings are relevant to hotel operators as they suggest that the benefits of dynamic pricing overcomes a possible damage in the performance due to consumer perceived price unfairness. Before drawing definitive conclusions, further robustness checks are needed. An intriguing direction is testing the impact of price variability between different dates, going beyond this approach that measured the inter-temporal variations approaching the checkin date.
Is Spain benefiting from the Arab Spring? On the impact of terrorism on a competitor country MarĂa Santana-Gallego (University of the Balearic Islands, Spain)1* Julio A. Afonso-RodrĂguez (University of La Laguna, Spain) Abstract Terrorism is likely to have detrimental effects on tourist arrivals in countries with persistent terrorist incidents. A growing number of papers have explored the effect of terrorism on tourism arrivals to the countries that are experiencing the instability and political violence. Therefore, previous research has been devoted to explore the effect of terrorism on tourist arrivals to the country where the attack took place. However, the substitution effect and tourism deviation caused by terrorism to alternative tourist destinations is still a developing field. In the present research, a novel hypothesis in the tourism economic literature is tested. That is, whether terrorism affects regional competition in the tourist industry. In that sense, the risk of terrorism causes tourists to substitute risky destination choices with safer choices. We explore if a higher frequency of occurrence of terrorist incidents in one country will divert tourists to a competitor market. To that end, evaluating the effect of the Arab Spring on tourist arrivals to Spain is an interesting case study. The empirical study includes the analysis of a dynamic regression model adjusted to the series of tourist arrivals with a flexible nonlinear trend component to account for the potential level shift in the series measuring terrorism impact. Additionally, we consider introducing a deterministic smooth transition function to model broken or unbroken trend lines, and also smooth transition or abrupt breaks in the deterministic component of the series.
1
Applied Economic Department. University of the Balearic Islands. Carretera de Valldemossa km 7.5 07122 (Palma de Mallorca). Balearic Islands, Spain. Email: maria.santana@uib.es
A nonlinear dynamic model for international tourism demand on the Spanish Mediterranean coast Albaladejo, I.P and GonzĂĄlez-MartĂnez, M., University of Murcia1*
Abstract Tourism is an important economic sector in the Spanish Mediterranean coast. It has become one of the most important sources of employment. Moreover, the number of people visiting it is increasing every year. In this context of consolidated destination with a growing tourism demand, we consider it very interesting to gain a better knowledge of the determinants of its demand. A nonlinear dynamic specification to model international tourism demand on the Spanish Mediterranean coasts, and investigate how habit persistence and word-of-mouth recommendations can affect tourism demand decisions is proposed. The use of a dynamic specification is justified in the sense that past visitors influence current tourism demand. Tourism destination can become popular (or unpopular) as consequence of experiences of past tourists. Furthermore, the nonlinear model adopted allows the effect of past tourists to depend on the destination´s features usually linked to its reputation or attractiveness as tourism destination. The quality of tourism services of a destination and its tourist overcrowding are two characteristics with a high impact on its visitors and therefore on its reputation. Our aim is to study how these attributes affect the relationship between previous tourists and current tourism demand on the Spanish Mediterranean coast. Empirical findings on quality and congestion play an important role in policy decisions. The model is estimated using a panel data set for the period 2005 to 2015. The data are disaggregated both by province of destination (the 11 Spanish provinces that make up the Mediterranean area) and by country of origin. Since the main tourist market is the European Union (EU), we consider European tourists from the following countries: Belgium, France, Germany, Holland, Italy, Portugal and United Kingdom. A system GMM dynamic panel data analysis (Blundell and Bond, 1998) is carried out to the estimations. The results show that one of the most important determinants of the international tourism on the Spanish Mediterranean coasts seems to be the lagged dependent variable, which controls both the effect of the word-of-mouth recommendations and the effect of habit persistence. As expected, the effect of this lagged dependent variable depends positively on the percentage of luxury hotels, and negatively on the ratio between tourists and hotel 1
Albaladejo, I.P.
Campus de Espinado (Murcia) isalba@um.es.
beds. There is a non-constant effect of the previous number of tourists over current tourists that varies across the destinations and through time. In any given year, it varies between the different Mediterranean provinces depending on its percentage of luxury hotels and the relationship between its tourism demand (tourists) and tourism supply (hotel beds). And, given a particular destination, it increases with the quality of services offered by hotels, and decreases when the increase in the tourists is not accompanied by a proportional increase in the number of hotel beds. In consequence, the provision of high-quality services and an appropriate hotel capacity are crucial for earning a good reputation and attracting new and repeat tourists to the Spanish Mediterranean coasts.
Tourism, environment and growth in an economy with pollution abatement activities Albaladejo, I.P, Arnaldos, F. and Martínez-García M.P, University of Murcia1*
Abstract: In this paper a dynamic model of economic growth, tourism and environment is studied. The model considers tourists in the economy as optimizing agents, interacting with domestic consumers. The number of tourists arriving in the country follows the Tourism Are Life-cycle model with a tourism carrying capacity dependent on environmental quality. Tourism hurts environment and abatement activities have to be carried out in order to keep the economy growing. The paper studies, first, the conditions under which sustained economic growth and the sustainability of the environmental are compatible and, second, how tourism/environmental policy affects long-run growth. Tourism promotion usually relies on the destination original attractions such as beaches, scenery and culture (Butler, 2009), which depreciate as tourism grows. Societies have realized the dangers from uncontrolled tourism growth and a new concept has emerged, sustainable tourism, which focuses on the environmental, social and economic aspects in this sector. With the aim of sustainability, there has been a general increase in the number and scope of tourism-related taxes, fees and charges (OCED, 2014), over the last years. Specific taxes on hotel stays are being implemented in many countries, to the national or regional level. However, the establishment of these taxes is always under debate. In this paper, the controversy of the taxes is developed in a formal framework by formalizing concepts and linking the effects of environmental policy on tourism exploitation and growth. It may contribute to the debate clarifying the possible effects of different policies. The main questions addressed are: for an economy based on tourism, under what conditions are sustained economic growth and the preservation of environmental quality compatible? In such case, which are the taxes necessary to reach this goal? In a pure market economy growth is unsustainable. Producers and tourists ignore the effects of their decisions on tourism congestion and environment. Abatement activities are not affordable and, consequently, the tourism carrying capacity cannot grow. Tourism arrivals growth will stop, once tourism occupation reaches the carrying capacity. Consequently, foreign capital inflows stop growing and the decreasing returns on domestic capital drive the economy to the stagnation. 1
Martínez-García M.P. Campus de Espinado (Murcia) pilarmg@um.es.
Tourism/environmental policy moves the economy from the unsustainable outcome to the optimal long-run growth. Taxing firms’ revenues and tourist consumption would move the market economy to the social optimum. Nevertheless, a tourism tax to finance abatement has two counteracting effects. Abatement increases the tourism carrying capacity which has a positive impact on long-run growth rate. However, since an increase in the tourism tax is understood by tourists as an increase in the price, they would reduce their demand of tourism services, which harms growth. The model concludes that a single value added tax does not guarantee Pareto optimality and a specific tourism tax is necessary for the market economy reaches the social optimum.
Labour Demand Flexibility: Do Strategy and Room Capacity Matter? Alemayehu, Fikru Kefyalew1 and Tveterüs, Sigbjørn1,2 1. Norwegian School of Hotel Management, University of Stavanger, P.O.Box 4036 Stavanger, Norway 2. Institute of Industrial Economics, Risk Planning and Management, University of Stavanger P.O.Box 4036 Stavanger, Norway Abstract This study investigates service operators’ ability to match staff hours to changing demand in a business environment characterized by relatively strict labor regulations and a large share of employees organized in labor unions. We use panel time series techniques to estimate a dynamic labor demand. Specifically, we use an error correction model based on a daily data for 94 hotels belonging to three different chains over a period of twelve years. The result shows that on a daily level there is only a moderate stickiness in temporal staff adjustment pattern, based on drivers of staffing level output, quality, and wage. However, the adjustment pattern varies with the size of hotel firms and across hotel chains. These differences are likely influenced by the size of the pool of skilled labor available and because of differences in strategies. The paper further discusses short-run and long run elasticities of labor demand to point out the variation further and provide managerial implications. Key words: workforce scheduling; dynamic labour demand; heterogeneous panel; hospitality
Abstract for the 2017 6th International Association Conference for Tourism Economics, Rimini – Italy 21-23 June 2017
Examination of Individual Preferences for Smart Hotels in Crete Alexandros Apostolakis (corresponding author), Department of Business Administration, Technological Educational Institute (TEI) of Crete, Heraklion, Greece, aapostolakis@staff.teicrete.gr Markos Kourgiantakis, Department of Business Administration, Technological Educational Institute (TEI) of Crete, Heraklion, Greece, mkourg@teicrete.gr Shabbar Jaffry, Department of Economics and Finance, University of Portsmouth, Portsmouth, England, shabbar.jaffry@port.ac.uk Abstract The hospitality sector is considered as one of the top energy consumers worldwide. At an era of considerable concern over the over-exploitation of natural resources and heightened attention to environmental deprivation, operational, business as well as managerial practices in the hospitality sector have come under scrutiny. A direct result of this rising skepticism regarding the hospitality sector’s operations has materialized onto increased legislative effort in order to restraint tourism activity ’ s negative side effects. In the European Union, this has resulted in considerable legislative action, linked to zero greenhouse gas emissions, energy efficiency incentives, certification and standards issues, or employment of energy efficiency techniques and practices for the industry. At a practical level, environmental and energy concerns have given rise to the concept of the ‘smart’ hotel. The smart hotel concept is the industry’s way to showcase its efforts to come up with an innovative product that takes into consideration concerns about environmental and energy practices in the hospitality sector. However, one issue pertaining to the abovementioned discussion relates to the fact that diffusion and adoption of the smart hotel concept (and thus consumers’ willingness to pay for such managerial initiatives) depends upon public acceptance and whether consumer preferences are in support of these initiatives or not. Hence, in order to justify the development and market viability of smart hotels, managers, practitioners and policy makers in the area should examine and evaluate individual preferences for these policy initiatives. For this purpose, the paper employs stated preferences discrete choice modelling methodology to evaluate individual preferences for a number of managerial and policy initiatives associated with smart hotels. The empirical results indicate that respondents value negatively managerial efforts to engage the consumer more into the service delivery process. Additionally, respondents argued very strongly (and positively) towards policies aiming to reduce and reuse water at hotels. They also exhibited a positive willingness to pay for different energy saving technologies. Finally, respondents exhibited strong and negative preferences (thus, indicating that they would not be willing to pay) for policy initiatives that are not certified according to international standards. Keywords: Discrete Choice Modelling, Crete, Smart hotels, Willingness to Pay
Assessing the macroeconomic impact of extending hotel height limitations Silvio Attard and Brian Micallef, Central Bank of Malta
Abstract This paper presents estimates of the macroeconomic impact of the recently revised policy framework by the Malta Environment and Planning Authority (MEPA) to facilitate the vertical extension of hotels which are rated as three-star or above by the Malta Tourism Authority (MTA). The simulations are based on the Central Bank of Malta’s structural econometric model described in Grech and Micallef (2014). Under the baseline scenario, we find that the policy has a positive effect on economic activity, with its impact on GDP being felt from 2015 onwards and stabilizing at around 0.25% in the long run. Model decomposition suggests that this effect is driven by a number of factors including the initial investment in construction, the impact on the supply potential and higher tourism exports. The policy also has positive effects on employment, income and the fiscal balance. This policy should not be assessed in isolation but rather from a holistic perspective as part of ongoing efforts by policy makers and the business community to upgrade the tourism product. Model simulations suggest that the macroeconomic impact of this policy, both in terms of output and employment, would be higher if the investment in supply infrastructure is complemented with demandside oriented policies to address the issue of seasonality.
Climate Change Denial and Social Representations: The Case of Florida’s Coastal Destinations Roberta Atzori, Sustainable Hospitality Management, California State University Monterey Bay* Alan Fyall, Jill Fjelstul, Asli Tasci, Rosen College of Hospitality Management, University of Central Florida Graham Miller, University of Surrey Abstract The issue of climate change has moved beyond the domain of the natural sciences, and become a domain of the social sciences. Society’s perceptions of climate change and the response to it at various decision-making levels have become urgent issues to deal with. With climate change being perceived as a slow phenomenon, society is not reacting quickly enough. This paper examines the case of Florida’s coastal destinations. Florida, one of the most visited tourist destinations in the world, holds one of the most ‘unenviable’ positions in terms of its vulnerability to climate change. The effects of rising sea levels and changing climatic conditions are already visible, particularly on its low-lying coastal areas. Second, and even more concerning given its vulnerable position, is the lack of political will to address these issues at the state level. For the tourism industry, the costs of inaction will be substantial. If unpleasant climate of the business-as-usual scenario makes Florida no more attractive year-round, the loss of tourism revenues is projected to total $9 billion by 2025, $40 billion by mid-century, and $167 billion at the end of the century. The fact that the climate change issue is so controversial suggests that there is not a single way of looking at reality in this context, as the existence of climate change deniers suggests. The theory of social representations postulates that people construct shared perceptions and theories that represent the social realities that they live. Within the issue of climate change, we can observe how science, politics, mass media and everyday knowledge meet, creating new social representations. The theory of social representations postulates that people’s views about complex and controversial societal issues are shaped through the interaction of individuals with the groups they belong to. In an attempt to shed some light on tourists’ views about climate change in relation to the groups they belong to, the religious and political orientation of tourists how had previously visited a coastal destination in Florida were examined. An online survey was designed to accomplish the objectives of this study, with a total of 432 responses obtained. The study findings showed that both political and religious orientation shaped the socially constructed views of climate change of respondents. With climate change seemed to have turned into a socially and culturally constructed issue, the way it is framed and communicated is highly important to determine how individuals perceive it. If motives related to uncertainty in the scope and severity of climate change associated to personal and political interests of policy makers at the state and the national level continue to delay taking action to address climate change, the action being taken by policy makers at the local level will not be sufficient, alone, to keep the impacts of climate change on Florida’s coastal areas under control. Effective and reliable communication programs would be required to make sure that scientific information about climate change is not subject to skepticism but can instead be understood and trusted by the general public, including tourists visiting the destination.
*
Sustainable Hospitality Management, California State University Monterey Bay, Seaside, USA Email:ratzori@csumb.edu
Abstract- “A Strategic Program to Educate the Next Generation of Sustainable Hospitality Managers” John L. Avella Ed.D- California State University Monterey Bay Jarett Bachman Ph.D- Fairleigh Dickinson University Vancouver There are hundreds of Hospitality Management Programs in the US and they are all very similar in their academic approach. The authors took a big step away from the traditional Hospitality Management program and have embraced the ever-important concept of Sustainable Hospitality Management. Development of the program was aided by working with local Hospitality community leaders. The Bachelor of Science degree in Sustainable Hospitality Management provides students with a broad foundation in hospitality, sustainability, leadership and management, operations, marketing, and information technology and it provides students with local, regional, and global perspectives on current and pressing sustainability issues and problems within the hospitality industry. The central core of the program focuses on the concept of “sustainability plus”, going beyond sustainability to address issues in terms of the five-dimensioned lens of People, Ethics, Equity, Planet and Profit. Students can focus on sustainable hotel, resort and event management or sustainable ecotourism management. Through internships and Capstone projects students gain hands-on knowledge and skills needed to pursue careers in the Tourism industry. Creating the degree was a cooperative effort with the College of Business and the Environmental Studies program, creating a new university learning community. Students and faculty will be resources for the local and international community interested in sustainable resort, hotel and event management and sustainable ecotourism. The journey from an idea to a BS degree in Sustainable Hospitality Management including curriculum development and Hospitality industry partnerships culminated with the start of the program in August of 2015 with 40 students. Enrollment for Fall 2016 is 75. This program is only the second BS degree program in Sustainable Hospitality Management in the United States. Keywords: Sustainable Hospitality, Hospitality Management, Sustainable Hospitality Management, Eco-Tourism Management, Sustainable Hotel and Resort Management, Sustainable Event Planning and Management.
Tourism, "game" and sustainability: myths and paradoxes
of accountability Maria Gabriella Baldarelli (University of Bologna)
Abstract In the transition from weak to strong sustainability (Baldarelli and Del Baldo, 2015) an important role is played by the instruments of accountability (Matacena, 2010). Especially in the tourism system the instruments to measure and to account about corporate sustainability have a fundamental function of the enterprise legitimation (Gray, 1993) in Its own territory. In this paper we want analyze, from the accounting perspective, the myths and paradoxes that can be found in the tools of accountability (Gray, Adams, Owen, 2014) in the gambling enteprises (Cefaloni, 2014). The research design develops through a deductive and inductive approach. The deductive approach is based on the analysis of the literature contributions about the relationship between sustainability development and accountability in tourism enterprises (Sorci, 2006; Ruisi, 2009). The inductive method is based on the analysis of one significant research case ( Naumes and Naumes, 2006) related to SISAL enterprise. Under the methodological profile, the empirical research is based on the analysis of the documentation obtained from the consultation of corporate website, social and environmental sustainability reports analysis. The research case analysis helps to understand the stakeholder’s expectations and such reflections can be drawn in the transition from weak to strong sustainability when gambling enterprises are involved in. However, the work has the main limitation that regards the empirical approach based on a one case, which hinders the generalization of results and requires a further research step aimed at considering more cases to submit to a deepened investigation.
TRANSMISSION OF COMPETENCIES AND HOTEL PERFORMANCE IN A MATURE TOURISM DESTINATION Barbini, F.M, CAST & Department of Management, University of Bologna Battilani, P., CAST & Department of Economics, University of Bologna∗ Savioli, M., Department of Economics, University of Salento & RCEA Abstract PURPOSE OF THE STUDY The primary goal is to deepen the understanding of the impact of traditional and formal competencies on hotel performance in a mature destination. METHODOLOGY We designed a quantitative survey and we performed a regression analysis (generalised linear models with a logit link and the binomial family) to assess the impact of different sources of hotel-management competencies on hotel operational performance. The sample was composed of hotels located in Rimini, which is a mature and iconic tourism destination, and the questionnaire was developed following approaches adopted by other investigations of the hospitality sector, and the suggestions of a preliminary focus group composed by local hotel managers and institutional stakeholders. FINDINGS Hotel managers build and develop their skills according to complex learning processes that necessarily include two fundamental factors: (1) education, aimed at learning management principles and techniques, and (2) experiential intelligence, coming from life experiences including growing up in a hotel. Having a bachelor’s degree, having chosen the job she/he likes and having had parents working in hotel industry do affect significantly and positively the occupancy rate. The same is true for some organizational features as the adoption of informal task execution, the existence of conflicts among workers and the decision to hire people not on the basis of the experience they have. In conclusion, the main finding of our study is that tradition still plays a key role for building competencies and strengthening hotel performance. ORIGINALITY Different organizational solutions and different learning processes coexist and succeed together. In addition, tacit knowledge embedded in family-run hotels is very important for the actual performance of organizations. Finally, the more the hotel manager is able to complement experience, traditions and academic education, the better the hotel performs in the competitive arena. RESEARCH IMPLICATIONS & LIMITATIONS ∗
Corresponding author, Center for Advanced Studies in Tourism & Department of Economics, University of Bologna, Piazza Scaravilli 1 – 40126 Bologna, Italy, patrizia.battilani@unibo.it
This investigation could be replicated in different typologies of tourist destination to compare traditional with formal competencies in different settings. For instance, what role traditional competencies have, if any, in "new destinations"? PRACTICAL IMPLICATIONS The fact that the slavish application of management best practices to all sort of hotels often results in worsening hotel performance should ring a bell. Organizational solutions need to be specific and customised according to the needs, traditions and the strategic vision of each hotel.
Tourism Consumption Behaviour of Italian Households in the Crisis Time Cristina Bernini, Department of Statistical Sciences and Centre for Advanced Studies in Tourism; University of Bologna, Italy. Maria Francesca Cracolici, Department of Economics, Business and Statistics, University of Palermo Peter Nijkamp, Tinbergen Institute Amsterdam and Adam Mickiewicz University, The Netherlands Abstract The Great Recession and the most recent recession were the deepest and longest-lasting in Italy after the Second World War. This prolonged decrease in disposable income negatively affects consumer confidence of future income, with subsequent changes in consumption behaviour. Since 2008, with the exception of 2010, real total expenditure dropped, declining by 3.8% in 2012 and 2.5% in 2013. However, the cuts in household expenditure differed across the various expenditure categories and the extent of the effect differs among individuals. In this paper we investigate how expenditure on tourism and leisure goods has been affected by the recent recessions, and how these effects differ across individuals over the life cycle. Using data provided by the Italian Households Budget Survey carried out by ISTAT, a Cragg model has been performed to explore how tourism consumption behaviour has changed during the crisis in different cohorts and household typologies. The analysis enables us to investigate both changes in the life cycle profile of the mean expenditure and also whether the Great Recession has affected the tourism expenditure inequality over the life time. This is the novelty of our analysis, enabling us to measure the extent to which the crisis has modified a household's access to the tourism market.
Visitor expectations and perceptions of sustainability in a mass tourism destination
Cristina Bernini, CAST & Department of Statistical Sciences, University of Bologna Laura Vici, CAST & Department of Economics, University of Bologna∗
Abstract Recently, the role of tourism sustainability has increased, especially for mature and mass tourism destinations. While the literature has largely focused on residents’ evaluations of tourism sustainability, little attention has been devoted to investigate the extent to which tourists either recognize the presence or evaluate the importance and quality of tourism sustainable policies at the destination. This study tries to fill this gap and to improve the knowledge of tourism sustainability in mature destinations, investigating tourists’ perceptions of sustainability experienced during their holiday and the consequent level of satisfaction. A sample of tourists (domestic and foreigners) who have chosen the District of Rimini (Italy) as a destination for their holidays in 2014 were interviewed. A mapping analysis is carried out to evaluate the features of the destination. In appraising how visitors assess their tourism experience, their expectations on the sustainable behaviour of the destination are not met. Even if Italian and foreign tourists ascribe, on average, the same level of importance in assessing several aspects concerning sustainability, inbound tourists are less satisfied with the solutions adopted by the tourism destination. Tourists in mass destinations consider sustainability a less relevant factor of the holiday and a less satisfactory aspect than others. Sustainability is still a feature that comes after the main and classical ones such as the sea, beach, sun, relax, entertainment. Several managerial implications of this study are drawn and recommendations for future research are presented. Keywords: sustainable tourism; mass tourism destinations; tourist evaluation; environmental impact
∗
Corresponding author: Laura Vici, Center for Advanced Studies in Tourism (CAST) and Department of Economics, Strada Maggiore 45, Bologna (Italy), laura.vici@unibo.it.
Factors affecting excursionists’ museum attendance: evidence from Abbonamento Musei Torino Piemonte 2004-2014 E. Bertacchini, A. Durio, M. Nuccio Department of Economics and Statistics “Cognetti De Martiis”, University of Torino DESPINA Big Data Lab
The aim of the paper is to provide an exploratory investigation of the factors affecting museum attendance behaviour by excursionists. Traditional approaches studying cultural tourism and excursionism patterns have usually relied on dedicated surveys to identify individual socio-economic characteristics that are likely to influence visiting behavior to museums. Conversely, we use a unique dataset of visits to museums in Piedmont by individual members of the Abbonamento Musei Torino Piemonte (AMTP) for the period 2004-2014, integrated with information about museums characteristics and activities. With more than 100,000 subscribers per year the AMTP is considered one of the main effective policy instrument to support the local demand for museums and cultural heritage institutions in Piedmont and an excellence case in Italy.The available database containing time series data over 15 years of museum attendance by the 300,000 subscribers of the AMTP represents a unique opportunity to address several hypotheses and research questions linked to museum attendance by excursionists. More specifically, considering the specificities of demand and supply structure of museum services in Piedmont (highly concentrated in the metropolitan area of Torino), we analyze the visiting patterns of AMTP subscribers from Torino to museums and cultural heritage institutions located in other areas of the Region. Firstly, we investigate what type and characteristics of institutions outside of the metropolitan areas are more likely to attract excursionist flows of AMTP-members. Secondly, we investigate what factors affect excursionism behaviour and the relationship between within-city museums visits and out-of city visitation patterns. Our preliminary results indicate that distance, organization of temporary exhibitions and the presence of amenities, such as parks, is positively related to excusionists’ visit. From the demand side, findings suggest that excursionism behaviour among AMTP subscribers is influenced by age and habit formation dynamics. The paper contributes to the tourism economics literature by providing new empirical evidence of the cultural consumption behaviour of excursionists.
Tourism-Led Growth Hypothesis in New Zealand: a Country Specific Approach
Giuliano Bianchi, Ecole hôtelière de Lausanne∗ Mondher Sahli, Victoria University of Wellington Laura Vici, CAST & Department of Economics, University of Bologna
Abstract Tourism plays a key role in driving the growth path of many countries and is one of the largest industries in the World, almost resilient even during the recent economic and financial crises. However, growth determinants are country specific. The aim of this study is to test the tourism-led-growth hypothesis (TLG) in New Zealand while including one of the main factor contributing to New Zealand’s growth: dynamics of dairy product exports. In particular, the analysis tests the existence of short and long run relationships among tourism receipts, dairy product exports, real exchange rate and real GDP. The analysis is conducted first in the whole sample from 1990 to 2014 (quarterly observed) and then in two subsample: before and after 2008 financial crisis. Johansen test suggests that a cointegration relationship occurs only in the sub-period 1990-2008. A Vector Error Correction Model (VECM) is estimated only for the sub-period 1990-2008, whereas a vector autoregressive model (VAR) is estimated for the whole period. A long-run relationship is, thus, highlighted only before the financial crisis, whereas short-run dynamics and causalities are explained for the whole sample. Keywords: TLG hypothesis; Vector Error Correction model; Economic growth
∗
Corresponding author: Giuliano Bianchi, Ecole hôtelière de Lausanne, Route de Cojonnex 18, 1000 Lausanne 25 (Switzerland), giuliano.bianchi@ehl.ch.
Tourism and Poverty Alleviation: Tools and Policies Adam Blake (Bournemouth University) Abstract Tourism is a substantial economic activity in many developing countries with high levels of poverty. However, research on the impact of tourism on local poverty alleviation is not always positive, and even at macro levels the advice from previous research is often that while tourism can help to alleviate poverty, this link is not automatic. Developing countries need to do more than assume that tourism provides incomes that must at least in part end up providing incomes to poor households. The study of the effects that tourism has on poverty is still in its infancy. While literature on tourism in developing countries, and in particular on the role that tourism has in development, dates back to the 1970s, and has been part of the tourism economics literature (e.g. Sinclair 1998), the relationship between tourism and poverty only came to the fore after Ashley, Boyd and Goodwin (2000) put “poverty at the heart of the tourism agenda”. This led to the definition of ‘pro-poor tourism’, The UNWTO’s Sustainable Tourism – Eliminating Poverty programme and poverty alleviation gaining importance in tourism programmes through the World Bank, the International Trade Centre and other international organisations. Advances in the last decade have moved beyond consideration of the contribution made by tourism to the incomes of poor households to assessing the potential of tourism to move households out of poverty. While the early evidence on tourism and poverty, through Pro-Poor Tourism and ST-EP case studies, has concentrated on the incomes earned by poor households, the real benefit of tourism is its ability to move households out of poverty, with academic literature demonstrating that at macro levels this can happen but also that it doesn’t necessarily happen, and that impacts of tourism on prices, costs and (real) exchange rates can reduce incomes for poor households. This paper examines how the poverty agenda has influenced economic policies in NGOs and developing countries, reviewing economic and tourism policies and planning documents. It identifies where there is an evidence base that enables policy makers to design and implement policies at (large) scale and where such evidence is lacking.
Daily Deals in the Hotel Industry: an S-C-P perspective Miha Bratec1*, Faculty of Economics, University of Ljubljana, Slovenia. Larry Dwyer, Faculty of Economics, University of Ljubljana, Slovenia. Tanja Mihalič, Faculty of Economics, University of Ljubljana, Slovenia. Abstract As information technology progresses, Internet-enabled hotel distribution channels are replacing the traditional ones. Among such intermediaries, Online Travel Agencies (OTAs) play a crucial role in the hotel distribution. The recent economic crisis, coupled with the rise of social media has generated the interesting phenomenon of Daily Deals (DDs), which has quickly established itself as a discounted distribution channel among customers and hoteliers (Berezina, Semrad, Stepchenkova, & Cobanoglu, 2016). Despite this, the research relating to the impact, the use and the nature of the DDs is extremely limited, often marketing-oriented, anecdotal and in need of further theoretical and empirical elaboration (Sigala, 2013). This paper seeks to fill this gap by looking at the hotel industry as a whole, as opposed to the majority of related studies that either use customers, or a single hotel as a unit of analysis. It aims to inform about the various functions that DDs assume in tourism distribution from the perspectives of tourism economics and strategic management, using the wellestablished SCP paradigm as a framework of operationalisation. The applied SCP framework guides us in a systematic review of the available DDs literature, which we enrich with critically assessed industry insights and conclude by logically structuring the findings along the SCP framework. By such means, we obtain an enhanced and holistic understanding of DDs and their potential impacts on both the market of electronic distribution – where we specifically focus on assessing their potential to threaten the oligopolistic position of the OTAs among the intermediaries – and the general performance of the hotel industry, which we treat under the common umbrella of e-hotel industry. Within the paper we discuss the nature of DDs and their functions, as well as assessing their impacts on hotels’ and other intermediaries’ conduct and performance. Furthermore, we explore all potential DDs’effects on the intermediation and future hotel industry. Finally, we present our findings in a form of a comprehensive model construct of SCP, customized to the nature of DDs’ impacts on the e-hotel industry, as well as propose a future DDs research agenda. References: Berezina, K., Semrad, K. J., Stepchenkova, S., & Cobanoglu, C. (2016). The managerial flash sales dash: Is there advantage or disadvantage at the finish line? International Journal of Hospitality Management, 54, 12–24. http://doi.org/10.1016/j.ijhm.2016.01.003 Sigala, M. (2013). A framework for designing and implementing effective online coupons in tourism and hospitality. Journal of Vacation Marketing, 19(2), 165–180. http://doi.org/10.1177/1356766712471839
1
Faculty of Economics, University of Ljubljana, Kardeljeva pl. 17, 1000 Ljubljana, Slovenia; miha.bratec@ef.uni-lj.si
All-inclusive and value creation: evidence from the Balearic Islands Aleix Calveras, Universitat de les Illes Balears1
Abstract We study all-inclusive (AI) in hospitality at a mature tourism destination as a case of product bundling in competitive markets. We show that product bundling (all-inclusive) will more likely be part of a market equilibrium when it involves a higher value creation, whether in terms of cost efficiencies or demand convenience, or both. Our empirical analysis, with data from the lodging industry in the Balearic Islands, years 2001 - 2010, does support our hypothesis linking AI and value creation. Thus, we observe that AI is more likely a part of the offerings of large establishments, establishments belonging to a hotel chain, and for families and sun-and-sea tourism, while less likely for cultural, biking, cultural and city tourism, all of this being indicative of the existence of cost efficiencies and a demand convenience linked to AI.
Department of Business Economics, UIB, Cra. Valldemossa km7,5 – 07122 Palma (Spain). Email: aleix.calveras@uib.es
Competition and the quality of a tourism destination Aleix Calveras, Universitat de les Illes Balears1
Abstract What is the impact of firm competition in the quality of a tourism destination? This paper contributes to the analysis of quality competition by firms in a spatial framework (à la Salop) as a way to model quality provision in an economic destination. We extend a model previously used by Economides (1993) and Brekke et al. (2010, 2012) with two additional characteristics that some industries such as tourism one show: the presence of external effects in quality choices, and the (industry) circular city’s demand being endogenous to firm’s choices (price and quality). We show that, while external effects always reduce market quality (as expected), its effect on firm entry, as well as the impact of market competition on quality is a priori ambiguous when industry demand is endogenous (contrary to some previous results with exogenous demand, e.g. Economides, 1993). We also show that market quality will tend to be underprovided from a social point of view, and that firm entry is always socially excessive, in spite that it is sometimes the case that larger external effects on quality might decrease firm entry when demand is endogenous. Finally, some policy recommendations are derived from our analysis: in order to increase market quality and social welfare, it seems best to try to reduce the extent of the external effects on quality (i.e. by means of Pigouvian taxation) or increase competition among current firms (i.e., more transparent markets) rather than increase competition increasing the number of firms since this might have a negative impact on market quality.
Department of Business Economics, UIB, Cra. Valldemossa km7,5 – 07122 Palma (Spain). Email: aleix.calveras@uib.es
Tourism and Economic Globalization: An Emerging Research Agenda Dr. Zheng Cao, University of Surrey1* Prof. Gang Li, University of Surrey Prof. Haiyan Song, The Hong Kong Polytechnic University
Abstract Globalization characterizes the economic, social, political and cultural spheres of the modern world. Tourism has long been claimed as a crucial force shaping globalization, while in turn the developments of the tourism sector are under the influences of growing interdependence across the world. Alongside the process of globalization, destination countries have become more and more susceptible to various events at a distance. By linking existing literature coherently, this study explores a number of themes on economic globalization in tourism. It attempts to find out the forces underpinning globalization and the implications on both the supply side and the demand side of tourism sector. In view of a general lack of quantitative evidence, future directions for empirical research have been suggested to investigate the interdependence of tourism demand, the convergence of tourism productivity and the impact of global events.
1
School of Hospitality and Tourism Management, University Guildford GU2 7XH, United Kingdom, zheng.cao@surrey.ac.uk
of
Surrey,
The impact of e-learning and e-examination on the gained knowledge of students of Tourism Economics Matteo Maria Cati, Campuses of Bologna, Forlì and Rimini of the University of Bologna1
Abstract Recent years have been characterized by the development of two major Information Technology (IT) instruments in the academic world: web – based e-learning (WBE) and eexamination (EE) (computer based assessments) as technologies that facilitates students learning and improve their performance in class. This paper studies the impact on the learning skills of students and on their ability to communicate, within an international environment, deriving from the introduction of WBE and EE and its research design is a quasi – experimental research. Differently from part of the existing literature (Swoboda Aaron and Feiler Lauren – 2016, Harandi Safiyeh Rajaee – 2015, Amirault, Ray J., and Visser, Yusra L. – 2010) that collects data through questionnaire surveys and focuses its attention only on one course (e.g. computer science), this analysis consider a set of different experimental groups of students, for different courses (e.g. microeconomics, macroeconomics and other subjects) and years (particularly first and second year students), enrolled in both the Bachelor and Master degree programs in the Campuses of Bologna, Forlì and Rimini (with particular reference to the Bachelor and Master degree programs in Tourism Economics) and uses data on their exam performance (grades), taken from both midterm and final exams. The results show that not only students involved in e-learning activities and in eexaminations tend to perform better that the other students, but also that WBE and EE have a positive effects on students’ motivation and on their psychological attitude toward taking exams. Keywords: information technology, web-based e-learning, e-examination, exam and learning performance, motivation. References: • Amirault, Ray J. And Visser, Yusra L. (2010): The impact of E-Learning Programs on the Internationalization of the University. New York: Nova Science Publishers. ISBN: 978-1-61728-317-8; • Harandi, Safiyeh Rajaee (2015): Effects of e-learning on Students’ motivation – Procedia – Social Behavioral Science – 11 May 2015 Vol. 181: 423 – 430 – Proceedings of the third International Conference on Leadership, Technology and Innovation Management; • Swoboda Aaron and Feiler Lauren (2016): Measuring the Effects of Blended Learning: evidence from a Selective Liberal Art College – American Economic Review Vol. 106, N° 5, May, 2016 (pp. 368 – 72).
1
Matteo Maria Cati – School of Economics, Management and Statistics - Campus of Rimini of the University of Bologna – 22, Angherà Street – 47021 Rimini – Italy – e-mail: matteomaria.cati@unibo.it
How free admittance affects charged visits to museums: An analysis of the Italian case
Roberto Cellini and Tiziana Cuccia ( University of Catania ) cellini@unict.it, cucciati@unict.it
Abstract: This paper aims to evaluate whether and how the free admittance to museums and monuments affects the charged visits. We take the Italian state museums and monuments as the case study, and we consider monthly data, aggregate at the national level, from January 1996 to December 2015. Within a multivariate analysis approach, which takes into account the seasonal structure of time series, we document a positive influence of the number of free visitors upon the contemporary and subsequent number of paying visitors. We also analyse the effect of the change in free admission policy, which has recently occurred in Italy: since July 2014 free admission is no longer reserved to specific segments of population, but it has been extended to all visitors on the first Sunday of each month. We show that this new rule has entailed an increase in the numbers of both free and charged visits, and a stronger link between the patterns of free and charged visits. Our present results can be relevant in the current political debate in Italy, in front of new rules concerning free admission to museums. More in general, we provide pieces of evidence that can be informative in the ever-green debate about free attendance to museum and its relations with individual choices and public policies concerning cultural consumption. Keywords: Museums, Free attendance, Cultural consumption, Seasonal time series. JEL Classification: Z11, C22.
INCOME, WEALTH, AND TOURIST CONSUMPTION: EVIDENCE FROM CHINESE OUTBOUND TOURISM Yong Chen (University of Applied Sciences Western Switzerland) Giuliano Bianchi (University of Applied Sciences Western Switzerland) Abstract While the income effect of tourism demand has been well addressed in the literature, we argue that tourism consumption is more related to wealth that tourists have accumulated in their lifetime. This conjecture is built upon the permanent income hypothesis proposed by Friedman (1957) while, as we argue, has profound context-specific relevance to tourism consumption. Compared to daily consumption that has been extensively addressed in the literature, tourism demand, or specifically spending on vacations, is more forward-looking as vacation needs to be planned in advance. For a family vacation, this planning can be months or a year ahead; for an individual travel, it can still take weeks before the consumption is actually fulfilled at the destination. Therefore, tourism demand would be determined by consumers’ expected wealth in their lifetime, rather than by their current income, which though lies at the heart of conventional tourism demand research. As the expected income is expected to increase or discount in the future due to various economic, social, and personal factors, tourists would demand more or less for tourism products, services, and vacation as a whole. In the long term, tourism demand would approximate what economists call “consumption smoothing”, which may demonstrate a different consumption pattern that has not yet to be addressed in the literature. This study begins by decomposing consumers’ total income into wealth, representing their long-term savings and assets, and wages and salaries, representing their current income streams from labor. We aim to test the hypothesis that tourism demand is positively associated with tourists’ wealth, and the wealth effect of tourism demand would prevail particularly in international tourism demand. We investigate the income and wealth effects in Chinese outbound tourism.
Landscape attributes and expenditure behaviour during agritourism vacations: An exploratory study Cicero Lucia, University of Udine Marangon Francesco, University of Udine Osti Linda, Free University of Bozen1* Troiano Stefania, University of Udine
Abstract This exploratory research work analyses tourism expenditure behaviour during agritourism vacations. In specific, it focuses on the impact of landscape attributes on the forecasted expenditure for both specific farm’s and general tourism products and services. According to the growing body of research-based literature on the attractiveness of landscape beauties, tourists receive benefits derived from the cultural ecosystem generated by the rural landscape. In fact, many tourists seek rural destinations, which offer experiences related to the landscape, environment, cultural patterns, historical features, and wine and food products (Bessiere, 1998; Gao et al., 2014; Renkoa et al., 2010). Despite the recognition that rural landscape is one of the most valuable agricultural externalities (Marangon & Visintin, 2007), that a pleasant landscape affects people’s wellbeing, and that the benefits of landscape preservation are higher than the costs (Tempesta, 2014), little empirical work has been conducted on the economic value of landscape. As regards expenditure behaviour in tourism, it has been demonstrated to be influenced by sociodemographic factors (Cai, 1998, 1999; Cai et al., 1995; Craggs & Schofield, 2009; Dardis et al., 1981, 1994; Dowanward & Lumsdon, 2004; Jang et al, 2004; Jang et al., 2002; Oppermann, 1996; Seiler et al., 2002), satisfaction (Disegna & Osti, 2016) and perception of authenticity (Brida et al., 2013). This study focuses on a data collection conducted among agritourism firms in the North East of Italy, through a selfadministered questionnaire to tourists spending at least one night at the farm and a logit model is employed. Expenditure was divided into three spending categories: accommodation, food and beverage, products of the farm. Landscape was investigated based on the tourists’ perception towards the presence of pleasant (such as orchards, vineyards, meadows, animals) and unpleasant (such as high voltage pylons, congested roads, factories, overcrowded places) elements. Data were collected in South Tyrol, an Italian province with a total of 7.400 km2 of which 64% are located over 1.500 m above s.l.. Thirty-six percent of its surface is used for farming and 39.5% is represented by woods. The investigated farms are operating on the downs and the hilly areas located between 200 and 1
Faculty of Economics and Management, Piazzetta Brunico (BZ), Italy. Email: linda.osti@unibz.it
dell’Università
1,
39031
450 m above s.l. Results of the explorative analysis show that the different landscape attributes exert significant different impacts across the three expenditure categories. The perception of landscape exerts a higher influence on expenditure for accommodation rather than expenditures for food and beverage and farm products. The likelihood to spend more is affected by the perception of pleasantness and/or unpleasantness of the following attributes: presence of green/flowered meadows, electricity pylons, view on urban centres, careless environment, nearby factories. Vineyards, congested roads, and tourists’ overcrowding are not significant. Our findings provide useful insights for farmers, tourism operators and institutional decision makers on the economic impact of landscape.
Weather forecasts accuracy and tourism prices: an empirical investigation on Italian ski resorts Simona Cicognani (University of Verona) Maurizio Mussoni (University of Bologna) Lorenzo Zirulia (University of Bologna)∗
Abstract Weather conditions play a fundamental role for several tourism products, with a significant effect on tourists’ willingness to pay. In this context, weather forecast providers can affect the decision to visit a destination, a fact which in turn has raised concerns among tourism operators about the negative consequences of biased forecasts. Based on data concerning 46 ski resorts in Italy, this paper aims at investigating two research questions. The first one relates to reliability of weather forecasts. Comparing forecasts of three different sources (both private and public) with actual weather for our sample destinations, and controlling for several other factors, we do find evidence of biased (pessimistic) forecasts for private meteorological companies, but not the public source. Following this result, we then look at the effect of weather forecasts on hotel prices, based on sample of hotels in each destination retrieved via the website Booking.com. We find that commercial diffusion of forecasts, rather than their accuracy, has a statistically significant effect on hotel prices. The implications for firms’ strategies and destination management policies are then derived.
∗
Department of Economics, University of Bologna, Rimini Campus, Via Angherà 22, 47921 Rimini, Italy, email lorenzo.zirulia@unibo.it
Determinants of tourism demand: How do price and income variables affect Turkish outbound travelers? İnci Oya Coşkun1* and Mustafa Kırca
Abstract International tourism is on the one hand considered a necessity and on the other hand it is regarded as a reward. The number of tourist arrivals has been increasing since 1950’s, however there are not many changes to the list of tourist generating or tourist receiving countries. Turkey is one of the world’s most visited destinations, in the top ten, and as the number of outbound tourists has been increasing, factors affecting Turkish outbound travellers have been a new subject of study. Turkish outbound tourism demand has been growing since 2012, and the market size has reached 9.25 million outbound visitors. As the growth in the number of outbound tourists from Turkey is still immature and recent, the empirical studies are limited. In literature there are a few studies analysing the determinants of Turkish outbound tourism demand. Economic growth is mostly studied for inbound tourism in case tourism’s contribution to the economy by foreign exchange earnings is an important issue. There are some studies exploring the effects of income on outbound tourism demand, nevertheless there are none for Turkey. This study attempts to investigate the effects of economic growth (income) and exchange rates (price) on Turkish outbound tourism demand, using Kapetenious (2005) multiple structural breaks unit root test to incorporate the structural breaks in the series and Maki (2012) cointegration analysis to investigate the long term relations between dependent and independent variables. Quarterly data for the period 2004:1-2016:2 is used for the variables namely the number of Turkish citizens visiting abroad, real GDP and effective exchange rates for US Dollar and Euro. GDP is used as a proxy for economic growth and real income, and effective exchange rates are used as a proxy for the possible effects of relative prices. The results indicate that Turkish outbound tourism is positively affected by the real GDP in the long run. Exchange rates are found to be statistically insignificant. Possible reasons of the findings and policy implications are discussed in conclusion. Keywords: Outbound tourism demand, Turkey, Economic growth, Real exchange rates, Kapetenious unit root test, Maki cointegration
1
Anadolu University Faculty of Tourism Eskisehir/TURKEY, ioyazicilar@anadolu.edu.tr
Yunus
Emre
Campus
26470,
The effects of business cycles on tourism demand flows in small island destinations Robertico Croes PhD, University of Central Florida Jorge Ridderstaat PhD, University of Central Florida
Abstract This study examines the liaison between business cycles and tourism demand flows to Aruba and Barbados by considering the between- and within-dimensions of business cycle effects. The study demonstrates that business cycles have a causal, dynamic bearing on tourism demand cycles, depending on the intrinsic dimensions that connect the two cycles. The methodology includes panel data analysis (unit root, cointegration, and Granger causality testing) on a transformed annual time series from 1970-2014. The study reveals that negative cycles indicate larger effects than positive cycles. However, these effects are not always present, are of short-term duration, and transitory in nature - depending on the cycle interval, the source country, and the destination. The study indicates the nature of the relationship between business and tourism demand flow cycles, which could help tourism managers and policy-makers refine their tourism development strategies.
Children’s preferences as drivers for family leisure choices Curtale R., Sarman I., Maggi, R, Università della Svizzera italiana*
Abstract For some tourist destinations, the role of family tourism and the demand it generates assume a crucial importance in the definition of leisure activities and marketing projects. In fact, destinations that consider the family as a fundamental generator of tourism demand spend their organizational and marketing efforts in order to create and promote an offer of leisure activities aimed at such a market segment. In this respect, attention is paid to the role of young children in the family unit. Modern tourism literature highlights how children represent one of the main influences on family leisure choices considering the relevance of their role in family decisions. Children’s satisfaction or dissatisfaction in leisure activities generate contrasting feelings on parents and hence they will take decisions based on the outcome on children’s sentiments. Notwithstanding the relevance of kids’ influence and parents’ willingness to accommodate their preferences, the impact of children’s feelings related to leisure alternatives on parents’ decisions may vary drastically with a series of factors. In particular, children’s influence may be mediated by the parenting style of the parents, the relevance that parents assign to children’s role in the family unit and the level of acceptance of their negative responses. The present article aims to investigate what is the role of children satisfaction on parents’ leisure-related decisions. In particular, our work specifically examines the role of parental attitudes in fulfilling children satisfaction or accepting negative reactions. In our specific framework, we do not assess a direct interaction between different decision-makers (children and parents) rather we consider the children as decision-influencers (through their levels of satisfaction for the different choice alternatives) while the parents act as decision-makers. Taking into consideration these roles, we decide to apply SP experiment to the parents, who are considered the final decision makers, and take in consideration children’s preferences in the utility function of the alternatives. The data have been collected with paper questionnaires and tablets from different cities in Canton Ticino, Switzerland. The place of interview are public or private tourist places throughout the Canton, like parks, beaches, camping or touristic attractions with the label for family destination. The final sample is composed of *
Department of economics, riccardo.curtale@usi.ch
Via
Maderno
24,
Lugano,
Switzerland,
172 families, children’s age starts from 4 years old, that is empirically the minimum age necessary to understand the questions and interact with the interviewer, to 16, with 92% of the children between 4 and 12. As expected, our results show a negative impact of cost and distance on the choice of the activity, while children’s satisfaction has a positive and non-linear impact on the choice of activity. Furthermore, different parenting style features may enhance or reduce the impact of children’s preferences on the choice. Tourist operators and entrepreneurs can take advantage of the results of this research for the development of their product or activities and planning their market strategies.
"Tell me what you do" Mapping tourist behaviour in time and space from tourist card data. Raffaele Scuderi, University of Enna “Kore”, Italy Chiara Dalle Nogare, University of Brescia, Italy
Abstract Destination cards are a popular tool for destination managers who wish to promote attractions and events and stimulate consumption at local commercial activities. Recording of data through a card may be very useful for tracing out the behaviour of consumers in space and time. The literature on tourist consumption has paid little attention so far to destination cards. This paper aims to mine data of a destination card that provides a wide range of free admissions and discounts at local attractions, museums and local producers’ shops. Our object of investigation are the summer visitors of Val di Non, a valley in Trentino (Italy), a renown Alpine area. This destination is characterised by diverse tourist attractions. Pattern recognition methods are applied in order to find out the most frequent behaviours of tourists from sequences of actions that emerge during their visit at the destination. In particular, clusters of sequences of events are identified, using an appropriate distance measure accounting for the ordering of activities recorded by each card. Evidence shows that most tourists give priority to outdoors moderately engaging activities, that there is a love for variety and that cultural tourists are the only relevant group characterized by choosing activities belonging to the same type (“indoors-intellectual engagement”) along the engagement-leisure scale. However, they are a minority among castle and museum visitors.
Understanding tourists’ leisure expenditure in the destination: a social network analysis Tatiana David-Negre, University of Las Palmas de Gran Canaria – Tides * Juan M. Hernández, University of Las Palmas de Gran Canaria – Tides Sergio Moreno-Gil, University of Las Palmas de Gran Canaria – Tides
Abstract The aim of this study is to identify spending patterns of tourists in relation to the leisure activities performed at the destination. In order to achieve this objective, the analysis focused on monitoring leisure activities developed by tourists from different nationalities in a coastal destination (Gran Canaria) throughout their day-by-day staying. From this sample, and through the methodology of social network analysis, a tourists-activities bipartite network was identified following a pattern known as core-periphery. The effect of this structure on tourism expenditure is analyzed through a multiple regression model, to which were added different sociodemographic variables and others related to travel. This study reveals that through the analysis of social networks, in this case, between tourists and activities, we can study the behaviour of tourists in a novel way. The results obtained are useful for Destination Marketing Organizations (DMOs) in order to plan design their leisure activity portfolio and its promotion.
1
Institute of Tourism and Sustainable Economic Development (TIDES), University of Las Palmas de Gran Canaria, Las Palmas, Spain – PhD-Student - tatiana.david101@alu.ulpgc.es.
Does good governance attract tourists? Claudio Detotto, Sauveur Giannoni, Claire Goavec UniversitĂ di Corsica Pasquale Paoli, UMR CNRS 6240 LISA
Abstract For twenty years, democracy, political instability (including terrorism), and their consequences have become household discussion topics, and they are still under social scientists' scrutiny. Due to their specific vulnerabilities to terrorist attacks and to fluctuations in consumer sentiments, the tourism sector and airline demand have received special attention from scholars. The consensus points to a clear negative impact of political instability on tourism and airline demand. However, political stability is not only a matter of the absence of violence or the existence of democracy, but it is also a proxy for the wider concept of governance. An important strand of research focuses on the role of institutions and economic freedom in explaining observed differences in economic development and performance. Essentially, the economic literature has moved from inputs and technological perspectives to a broader understanding of the prerequisites for growth. Good governance is needed to assure property right security, contract enforcement, and collective action. The positive impact of good governance arises mainly from two sources. First, it reduces transaction costs, allowing markets to work more efficiently. Second, good governance allows markets to ``overcome entrenched market failures in allocating assets, acquiring productivity-enhancing technologies and maintaining political stability in contexts of rapid social transformation.'' Starting from this premise, we seek to verify the intuition that tourists take into account factors other than price and ``direct'' service quality. Specifically, we seek to measure the importance of governance quality on the development of and motivation for tourism. Is the governance quality of an economy crucial to the attractiveness of tourism? In addition, if yes, how? To what extent can the governance level of a country and its security image influence tourism consumption? The tourism market is known to be global and very competitive. In this context, small differences in resources and/or institutional environments are likely to have immense short-run and long-run consequences. The idea is to use the tourism industry, given its characteristics and peculiarities, as a case study in order to clearly observe governance quality effects. We might expect that a small variation across
countries and periods leads to significant performance changes. Although some links seem straightforward, no bridge exists between the literature on governance and that on tourism. Thus, this study aims to investigate the relationship between governance and the tourism industry by comparing the tourism performances of countries with different governance qualities. To this end, a dynamic panel data approach is performed using data on 100 countries over 2002-2012. Our variables of interest are the Worldwide Governance Indicators collected by the World Bank. The WGI are six composite governance indicators that measure governance quality as perceived by enterprise, citizen, and expert survey respondents. Our results show that higher governance quality has a positive and significant impact on aggregate tourism revenue.
A PRICE-DEPENDENT DEMAND SYSTEM: AN ALTERNATIVE APPROACH TO MODEL TOURISM DEMAND Sarath Divisekera Victoria University, Melbourne, Australia Since the publication of the first empirical study by Guthrie (1961), many tourism demand studies employing various models and data appeared in the literature. Most of these early studies were based on the single equation approach and focussed on individual countries or destinations. This approach fails to incorporate possible interdependencies of demand. The work of O’Hagan and Harrison (1984) marks a significant departure from previous studies. Based on the systems approach to demand modelling, which allows incorporation of potentially substitutable and complementary destinations simultaneously, they modelled US demand for tourism in Western European destinations. This was the first attempt to employ the neoclassical theory of consumer behaviour, the cornerstone of modern empirical demand analysis, to analyse tourist demand. This was followed by numerous studies using alternative theoretically consistent demand systems. They include the Linear Expenditure System (Sakai, 1988; Smeral, 1988; Pyo et al., 1991), the Translog Demand System (Bakkal and Scapalanda, 1990; Bakkal, 1991) and the Almost Ideal Demand System. These contributions have enriched our understanding of the tourist’s decision-making process. However, one might wonder whether the conventional approach to demand modelling, widely adopted in the tourism literature, is readily applicable to tourism goods and services. This is because, unlike many goods and services available in the marketplace, quantities of most tourism goods and services tend to be fixed in the short run or are exogenously given. An example is quantities of available hotels rooms at a given point of time. The same applies to international aviation, available capacity in a given route is predetermined if not fixed in the short run. Moreover, most tourism goods and services exemplify the case where the non-storability of the final retail product and inherent seasonality in demand combine to make quantity adjustment difficult in the short run, forcing markets to clear based on price adjustment. Thus, the conventional approach to demand modelling where quantities adjust to clear markets may not necessarily hold in relation to most tourism goods and services. In this situation, the inverse specification of demand functions, where quantities are assumed to be predetermined, are more appropriate to the analysis. The proposed study attempts to model tourism demand using a price-dependent demand system.
Keywords:
Tourism Demand, Inverse demand functions
INNOVATION AND FIRM PRODUCTIVITY: EVIDENCE FROM AUSTRALIAN TOURISM BUSINESSES Sarath Divisekera &
Van K Nguyen
Victoria University, Melbourne, Australia Abstract Innovation is perceived to be crucial to business success by keeping the firm at a competitive edge and improving performance. Studies on innovation in tourism are limited. Existing literature has mainly been focused on describing the concept of innovation and its adaptability in tourism, little is known about the effect of innovation on business performance. This study aims to contribute to this important area by examining the impact of different types of innovation on firm productivity in an Australian context. An ordered logistic regression model is used to explore the relationship between productivity and innovation among Australian tourism firms. Along with different types of innovation - goods, services, process, organisational, and marketing - other factors that drive productivity growth, including information technology, skills and training, and market competition are also included as controlled variables in the model. Necessary data for the study is drawn from Business Longitudinal Database developed by the Australian Bureau of Statistics. The regression results reveal a positive association between innovation and productivity in general. Of the different innovation types, services and marketing are the two most important drivers of productivity. The three remaining types (goods, process, and organisational innovation) are found to be statistically insignificant. These findings are consistent with apriori expectations and empirical realities. Tourism businesses sell products/packages and provide services to customers who travel for recreation, family or business purposes. Therefore, innovation leading to a new service/product to meet customer demand; or innovation that enhances the service quality yielding higher consumer satisfaction are likely to bring new customers, and improve overall service efficiency. As a demand-driven industry, marketing plays a crucial role in driving demand for tourism. Those firms implementing innovative marketing methods could experience increases in demand and differentiate their products from competitors leading to improved overall business performances. Of the controlled variables, adoption of information technology is an important driver of productivity. Given the specific nature of tourism that requires a firm’s capabilities to organise information and knowledge across geographical and user boundaries, increases in ICT usage help to reduce costs and increase operational efficiency. Finally, increasing training for employees is also found to be an important driver
of productivity. A well-trained workforce is more likely to work efficiently and provide better services to customers, leading to increases in productivity. In conclusion, our findings suggest that service and marketing innovation, along with training and information technology, are the major drivers of productivity among tourism firms. The findings should provide an informed platform to evaluate and formulate appropriate policy measures to address productivity-related issues affecting the Australian tourism sector. Keywords:
Innovation, Productivity
Tourism economics and sustainable development in Moroccan Rif mountains Prof. Dr. EL-FENGOUR Mohammed, University Mohamed V in Rabat, University Institute for Scientific Research. Morocco. *
Abstract: The tourism in Morocco employs 540,000 people, 4.5% per cent of the total labour market and generates more than 15% of foreign currencies. However, the 2020 strategy of the government which aims
to
attract
20
million
tourists
coincides
with
the
Mountain
areas
be
new
international economic crisis. The
Ecotourism
in
Moroccan
Rif
can
a
development path for local community to serve their agricultural products, handicraft activities, and can be a development lever for raising public awareness of environmental friendliness. The mountainous tourism also represents a high potential for support to
traditional
activities
and
improve
the
Well-being
of
local
people. The mountainous area, object of this study, is chosen for its unique natural and cultural heritage in fragile context, with its Mediterranean
climate
and
topography
culminating
(+2400
m
at
Tidrine mountain summit). Deforestation and overgrazing destroyed largely the natural land cover
and
resulted
in
degraded
land
systems
or
even
desertification. More traditional agricultural practices are more and more lost and a spatial harmonization of agricultural land uses
is
missing.
The
illegal
agriculture
of
Cannabis
(drugs)
destroyed the entire sustainable system in Rif mountain area, this study focus on a new trend of green market for local development to contribute in sustainable economy in Northern Morocco zone.
*. Av. Allal El Fassi – B.P. : 6287. Rabat – Instituts. Rabat. Morocco. University Institute for Scientific Research. Email, fengour.med@gmail.com .
Innovation and oleotourism: a theoretical analysis applied in the southern region of Buenos Aires (Argentina) Silvina Elías, Andrea Barbero & Flavia Poinsot, Economic Department, UNS1 Abstract In the last years, social and economic aspects are converging in the Argentine rural sector, boosting the tourist development. In order to understand its boom, we must observe two compatible trends: the influx of people seeking to move away from urban life and the incipient vision of the producer, who, by diversifying the activities of his agricultural enterprise, is able to generate employment and promote rural roots. More tourists are visiting rural areas with the purpose of getting to know the idiosyncrasy of their villages and in this sense, tourism seeks to discover characteristics of rurality such as nature, traditional architecture, gastronomy, traditions, folklore, popular customs, physical environment and traditional ways of life. In this context, new proposals such as “enotourism” (wine tourism) and “oleotourism" (olive oil tourism) emerge. These are complementary activities to agriculture focused on the services and leisure sector and are able to generate new prospects for growth in rural areas. Melián, Millán and López (2008) indicate that, "there is a growing number of people who want to devote part of their money and free time to discovering the world of wine and oil, their stories, their landscapes, their elaboration, the people that makes them possible". The promotion of olive oil tourism in the rural environment promotes new economic activities to maintain and improve the living conditions of its population. Its objective is "to achieve a product that includes the largest number of actors, generating more jobs in these areas and diversifying the existing supply" (Blanco and Riveros, 2004). The Southwest region of Buenos Aires is no stranger to these processes. Because of climate change, it has been experiencing severe droughts and deteriorating its environmental quality for years, which directly affects the productivity of traditional agricultural activities and makes it necessary to think about alternative ecofriendly proposals. This work advances the study of the innovative processes, capacities and interactions generally related to the olive growing activity and in particular to the oleotourism in the region, reflecting on possible guidelines that favor its development. To do this, the first part will develop a theoretical model following Schumpeter's clock model (Mensch et. al., 1984) to continue with 1
Department of Economics, Universidad Nacional del Sur, IIESS, UNS-CONICETSan Andrés 800, Bahía Blanca, Argentina. Correo electrónico: selias@uns.edu.ar;
the characterization of the study area and analyze the incipient cases of oleotourism. References BLANCO, M. y RIVEROS, H. (2004). Las rutas alimentarias una herramienta para valorizar productos de las agroindustrias rurales. El caso de la Ruta del Queso Turrialba (Costa Rica). Congreso Agroindustria Rural y Territorio, Toluca (México).En línea: http://www.scielo.org.ar/scielo.php? script=sci_nlinks&ref=2767835&pid=S15155994201000020001400005&lng=es MENSCH, G., HAAG, G., & WEIDLICH, W. (1984), The Schumpeter Clock, Ballinger, Cambridge. MELIÁN A., MILLÁN G. y LÓPEZ T. (2008) Vinos con denominación de origen. La Denominación de origen de Alicante. Revista Viticultura y Enología Profesional, (114), 515.
Testing the presence of spatial spillovers in visitor attractions Juan Luis Eugenio-Martin (Universidad de Las Palmas de Gran Canaria) Estefania Sanchez-Cevallos (Universidad Tecnica Particular de Loja) Abstract This paper explores the spatial spillovers of the demand of visitor attractions. Two issues are considered: i) The first issue deals with the demand of visitor attractions and how they are affected by neighbour attractions of the same kind. The argument is based on route taking and how much concentration of visitor attractions is providing positive externalities for demand. ii) The second issue deals with how much aggregate demand at municipalities level is affected by the presence of visitor attractions. Different models are estimated for different kinds of visitors, i.e. sand and beach tourists, ecotourists, cultural tourists, city tourists and adventure tourists. It tests how relevant is the presence of other kind of attractions for the demand of a kind of tourism. In other words, for instance, how much are ecotourists willing to visit a place with ecotourism attractions and, also sand and beach attractions? Are cultural attractions pulling ecotourists to a microdestination? Does it provide a difference? Hence, it deals with complementarity among attractions and the convenience of concentration. The application is based in Ecuador, where a tourist survey was conducted to 777 tourists. They stated to have visited 547 attractions. The country was split up into 1032 microdestinations with a varying offer of attractions of different kind.
Modelling booking channel selection: Evidence from European level data. Martin Falk, Austrian Institute of Economic Research, Raffaele Scuderi, Kore University of Enna 1*Mar
Abstract Guests are increasingly doing hotel reservations online at the hotels website or via online travel agencies. Booking online makes price comparisons across different hotels easy. Prior internet, guests called the hotel directly or use travel agencies to make a reservation. Online booking systems are regarded as one of the 100 most important innovations in the tourism literature (Hjalager, 2015). Evidence based on a representative travel survey shows that about 45 per cent of the Europeans booked their holiday trip in 2015 via online sources (either from online commercial services listing private housing offers from individuals or from tour operators, airline companies). Although online bookings have increased steadily over time, traditional booking channels still account for a significant portion of bookings (with a share of 32 per cent among Europeans). The aim of the paper is to investigate the characteristics of the choice of the booking channel using a representative data set of all Europeans. Guests can choose between multiple channels including directly online booking, calling the hotel directly or use traditional travel agencies. The choice of the channel is likely to be different across guest characteristics. The empirical model is based on a multinomial logit model distinguishing between four categories (offline booking only, online booking or both with no booking as the base). In addition, mixed effects multinomial probit models are used where the coefficients are allowed to vary across (NUTS) regions. Data for the empirical analysis is based on the Eurobarometer travel survey covering 30,000 Europeans of which 19,000 travelled for professional or personal reasons in 2015. The database contains a wide range of socioeconomic and demographic characteristics. A multinomial logit model determining the factors influencing the different booking channel shows that these choices depend significantly on socioeconomic and demographic characteristics including age, occupation, the size of the local population in ones place of residence, and country of residence. Respondents in skilled occupations are more likely to book online. In addition, there are remarkable cross-country differences in the probability of booking online with the highest levels recorded in small and wealthy western and Northern European countries (Belgium, Denmark, Luxembourg, Finland, Ireland, the Netherlands, and the UK) and the lowest in southern and southeast European countries. Thus our estimations confirm the digital divide hypothesis. Older people and retired people are less likely to book online. People living 1
Raffaele Scuderi, UniversitĂ raffaele.scuderi@unikore.it.
degli
Studi
di
Enna
"Kore"
I-94100
Enna,
in capital cities are more likely to book online than those living in rural areas. Frequent travellers (travelling between 6 and 10 times) have the highest probability of online booking. Overall, the results show that choice of online booking depends on a bundle of factors.
Returns on investments: The downhill skiing story Martin Falk1* (Austrian Institute of Economic Research); Sigbjørn Tveteras (University of Stavanger) Abstract In South Tyrol/Alto Adige the number of lift transports is stagnating around 115 million for each winter season. Despite the stagnation companies continue to increase their lift capacity by replacing older lifts by newer and faster ski lifts. Between 20002014 about 66 new ski lifts have been installed. Little is known on the returns to investment in new ski lifts. The aim of the paper is to investigate the effect of new ski lift installation on total output at the ski area level. To account for a presumptive business stealing effect, which cannot be detected at the individual ski area level, we also estimate the wider effect of these investments on the neighbouring ski areas. The difference-in-differences approach is used to estimate the narrow and wider effects of these investments. Control variables include size, share of fast lifts, average elevation of ski lift and a dummy variable belonging to a large ski network. A common believe is that investment in transport infrastructures exhibit high returns (see Melo, Graham & Brage-Ardao 2013 for a meta-analysis). However, recent studies show no significant relationship between transport infrastructure and regional growth (Crescenzi, & Rodríguez-Pose, 2012). The previous literature on performance of ski lift companies has focussed on measuring technical efficiency (Brida, Deidda & Pulina 2014), environmental strategies and efficiency (Goncalves, Robinot & Michel, 2016), the relationship between performance and weather factors (Shih, Nicholls & Holecek, 2009, Steiger, 2011) and mergers of ski areas (Falk, 2017). This work is also related to Beaudin and Huang (2014) who investigate the impact of the investment decision in snowmaking on survival of ski lift companies where investment is assumed to be endogenous. This study is also related to the literature on the productivity effects of investment spikes or vintage capital. Evidence for manufacturing firms show that investments are rarely conducted on an annual basis. This is commonly refereed as the “lumpy nature of investment”. Using data for in manufacturing establishments, Power (1998) finds that productivity growth does not increase after periods of large amounts of new capital investments. To the best of our knowledge this is the first study investigating the link between ski lifts replacements and performance by taking into account the wider effects using microeconometric models. Data is based on panel data for about 50 ski lift companies in South Tyrol with about 370 ski lifts which results in about 600 observations pooled over the period 2000-2014. Evidence based on the difference-in-difference model augmented by the control variables shows that the output effects of new lift installations are large and long-lasting. On average, ski areas 1
Martin Falk, Austrian Institute of Economic Research (WIFO), Arsenal Objekt 20, A-1030 Vienna, martin.falk@wifo.ac.at
with new ski lift installations have a 9 per cent higher output in the subsequent winter season and between 9 and 10 percent in t+2 and t+3 respectively. However, the wider effect (inclusion of neighbouring ski areas) is much smaller ranging between 3 and 5 per cent depending on the time period. With respect to policy one can conclude that innovative investments leads to higher output of ski area, however part of the large returns to investment are caused by stealing the business from the neighbours.
Online booking channels allow for last-minutes bargains Martin Falk* (Austrian Institute of Economic Research); Markku Vieru (University of Lapland) Abstract There is increasing evidence that hotel guests pay different room rates depending on when they book (early or late). Differences in booking behaviour and prices are likely to reflect the guest heterogeneity in terms of willingness of pay and degree of risk aversion. The emergence of online travel distribution technologies has facilitated guests’ booking opportunities worldwide and changed the pricing over time as well as the booking behaviour of guests. Online hotel prices can be easily compared and last-minute deals are much easier to find. Despite the interest of customers and industry still little is known how booking price of a hotel room change when the arrival day comes closer (Chen and Schwartz, 2008). Theoretical models suggest that customers who book late are willing to pay higher rates (Schwartz, 1998, 2000; Gallien, 2006). More recently, Su (2007) develop dynamic pricing models where the price booking time relationship is driven by heterogeneous customers with different degrees of willingness to pay and risk aversion. Empirical evidence on the relationship between booking lead time and room rates is scarce with mixed empirical results, and studies are often limited to room rates drawn from online booking platforms (e.g. Lee et al., 2011). Exceptions are studies by Masiero, Nicolau and Law (2015) – who employ actual paid room rates – and Stangl, Inversini and Schegg (2016) – who use survey data. This paper investigates the relationship between hotel room rates and the time difference between booking date and check-in date. Contrary to previous studies we distinguish between offline booking and online booking channels .The latter is distinguished between online travel agents (OTAs) and direct online bookings via the hotel‘s website. Having information on different channels provides a more complete picture of the relationship between prices and booking time. The price equation is estimated using quantile regressions with standard errors clustered across hotels. The study uses unique data drawn from a hotel reservation system of a chain with about 130,000 individual bookings over a five-year period. Quantile regressions shows that hotel room rates depend significantly on the booking lead time. In particular, for online bookings (either via OTAs or from the hotel’s website) estimations show that early bookings are associated with the highest room rates while late bookings (same day or up to nine days) achieve the lowest prices controlling for all other room and guest characteristics. Thus prices on average monotonically decrease when arrival time comes closer. For offline bookings there is a ushape relationship with bookings between 10-24 days reaching the lowest room rates. In general these patterns can be observed for *
Martin Falk, Austrian Institute of Economic Research (WIFO), Arsenal Objekt 20, A-1030 Vienna, martin.falk@wifo.ac.at
low and high price rooms, bookings in the high season and for domestic guests. Overall, the price dispersion across different booking times is larger for offline than for online bookings. Overall, the results based on the hotel reservation database are very promising since both online and offline booking prices for specific points in time are available. Another advantage of the data is that the hotel reservation system contains a large number of control variables that have to be accounted for when studying price determinants. Thus, findings based on such databases complement studies based on experimental data (Chen and Schwartz, 2008) and online booking data (Abrate, Fraquelli and Viglia, 2012).
The causal effect of VAT and city taxes on overnights stays in European cities Martin Falk1* (Austrian Institute of Economic Research); Yang Yang (School of Tourism and Hospitality Management Temple University)
Abstract Many European cities introduced a city tax after the economic and financial crisis. For example, Barcelona, Berlin, Rome and Paris all introduced or increased a city tax (also referred to as a “bed tax” “tourism tax” or “hotel room tax” from 2008 onwards. In other EU countries, governments increased the VAT rate for accommodations (e.g. in the UK from 15 to 20 percent). Reasons for such tax increases include rising public deficits and the search for new sources of income. At the same time, European cities have experienced strong growth in overnight stays. Between 2004 and 2014 growth of overnight stays in the top European city destinations exceeds four percent per year on average with the highest growth in Berlin followed by Istanbul, Barcelona, Rome, Madrid and Vienna. This paper provides further empirical evidence on the impact of tax increases on overnight stays. The impact is measured as the change in overnight stays in subsequent year by the use of the difference-in-differences estimator. This estimator compares the difference in overnight stays between the treatment group (cities with tax increases) and the control group (cities not affected by the tax increase) before and after the introduction of taxes or tax increases. Control variables include sea border, size measured as population, local costs of living, world heritage size, presence of airports and universities as well as climate zone). Knowledge of the impact of tax increases is important because policymakers and city planners are considering the introduction of a city tax (London, Hong Kong) or increases in the VAT for hotels (Vienna in 2016). Policymakers argue that the negative impact of tax increases on overnight stays is negligible because of a strong rise in city tourism. The results using the difference-in-differences estimator show that increases in the VAT rate lead to a strong decline in overnight stays of cities as compared with those that are not affected. On average, overnight stays are six percent lower in the two subsequent years following the increase in VAT as compared to the control group. Thus, the magnitude of the causal effect of the VAT increase is quite large. However, the introduction of the city tax does not lead to a decline in the number of overnight stays. A possible explanation is that the city tax is rather low of about 2 Euro on average.
1
Martin Falk, Austrian Institute of Economic Research (WIFO), Arsenal Objekt 20, A-1030 Vienna, martin.falk@wifo.ac.at
Tourism and Growth: A Review and Meta-Analysis Elvira Fetahu, Faculty of Economics, University of Elbasan, Albania Roberto Patuelli, Department of Economics, University of Bologna, Italy Laura Vici, Department of Economics, University of Bologna, Italy
Abstract In recent decades, several waves of studies on tourism have considered its potential role in generating economic development. This objective is often operationalized by attempting to measure the effect of a number of tourism-related variables on GDP or other economic outcomes. In other words, a so-called “tourism-led growth hypothesisâ€? (TLGH) is tested. Most studies in this line of research focus on single countries or even destinations, building on rather specific case studies or on a limited number of observations. On the other hand, other studies present evidence for groups of countries, aiming at generating generalizable findings. Several different methods are employed for this purpose, going from standard time series and Granger causality approaches to advanced dynamic panel data models. Only few papers have till now tried to reconcile the results from such different approaches and case studies, either qualitatively in the form of reviews, or quantitatively by means of meta-analysis (the only available contribution in this case being the one by Castro-NuĂąo et al., 2013, Journal of Travel Research). This paper aims to provide an overall assessment of a large sample of almost 100 studies on the TLGH published over the last thirty years and their respective findings. We do so by first providing a detailed literature review, and by subsequently carrying out a set of meta-analytical regressions. In particular, we focus on the different dimensions by which studies vary, such as the year of publication, the type of database used, country of application, period considered, econometric method employed and more. In addition, we control for the different possible variables used as indicators of economic outcome as well as to measure tourism demand (e.g., in this case, tourism receipts, tourism expenditure, tourist arrivals).
Booking in the rain. The impact of weather forecast on sea and sun destinations Paolo Figini, Department of Economics and CAST – Centre for Advanced Studies on Tourism, University of Bologna* Simona Cicognani, Department of Economics, University of Verona Lorenzo Zirulia, Department of Economics, University of Bologna Abstract A particularity of tourism is the dependence on factors beyond the control of supply and demand, as weather conditions. The availability of accurate weather forecasts increases the overall market efficiency, although not everyone’s welfare might be gaining but, on the contrary, if weather forecasts are biased and tourists are not aware of the distortion, the equilibrium is welfare worsening for both firms and tourists. It has recently been argued that private weather forecasters systematically bias forecasts for commercial purposes, with negative effects on the tourism market. Media have often echoed the complaints of tourism operators, amplifying the alleged cost that hotels have to pay for a strategy that has also been defined as “meteo-terrorism”. Within this framework, this paper tackles three main research questions. Is there any systematic bias in the accuracy of weather forecasts and, in case, is this bias larger for private than for public forecasters? Do (biased) weather forecasts impact on the tourists’ behaviour and, as a consequence, on the pricing strategy of the hotel sector? What is the estimated economic impact of wrong weather forecasts on the hotel sector in a seasonal sea & sun destination? Data have been collected through a scraper in the period June – September 2015, monitoring Rimini, an important Italian seaside destination. Each day the scraper collected information on: i) the weather forecasts published by three commercial websites / apps and one public provider; ii) the actual weather as recorded in the official and public archive; iii) the prices published on an important booking engine by the population of hotels of Rimini for standard holiday types. The lead period considered is of 15 days, for both weather forecasts and prices. The whole dataset includes more than 1 million observations related to 874 hotels. Results show that weather forecasters are not systematically biased and, surprisingly, the commercial providers are more accurate than the public service. Moreover, by regressing the posted price on the weather forecast posted in the same day we found that, controlling for a set of variables, that in the case of a popular private forecaster there is a strong impact of weather forecasts on prices: the worse the forecast, the lower the price. Finally, we provide a rough estimate of the total cost of bad forecasts, by distinguishing the impact of bad weather from the one of bad forecasts. The joint reading of these results allows us to conclude that, on average, weather forecasts are not biased and that, as a consequence, the variability of prices when the forecasts are bad is the rational response of the tourism supply when tourists are less willing to pay for a holiday break that is perceived of lower quality. Keywords: Weather forecasts; Big Data; Pricing strategy; Exogenous quality.
* Corresponding author: E.mail: paolo.figini@unibo.it Preliminary version, not to be circulated. The present research is part of the research project “Big Data and Destination Management: an economic and statistical analysis of Rimini (Italy)” for which authors acknowledge financial support from CAST and UNIRIMINI. A huge thanks to Marco Montanari for his assistance in data scraping.
On noise and difficult convergence of non-certified review systems. It is like rolling a dice. Paolo Figini,* University of Bologna Laura Vici, University of Bologna Giampaolo Viglia, University of Portsmouth Abstract Reputation serves as a signal for the quality of a product, with consumers willing to pay a premium for the offerings of high-reputed firms, especially in markets characterized by high level of uncertainty. Previous research agrees that consumers consult online reviews to form their ideas on the reputation of the product and certified rating systems can help to increase the trustworthiness of the review. A relatively new strand of the literature has recently focused on analysing fake reviews (Luca and Zervas, 2016). This paper suggests a link between the presence of noise in review scores and the absence of a certified rating system. While it is virtually impossible to filter fake reviews, both the presence of extreme ratings and of a difficult convergence of ratings over time might signal the presence of biases. To test for this, the study investigates two environments characterized by different degrees of certification: a website with the absence of a certified rating system (TripAdvisor) is compared to a website where only former customers who previously underwent a transaction can write a review (Booking.com). Data have been collected through a scraper in April and May 2016 on more than 100,000 reviews posted since 2006 on hotels in Rimini, an important Italian seaside destination. The dataset allows to test the following hypothesis: H1: In a non-certified review system the average rating along with the volatility of reviews are inflated. H2: In a non-certified rating system, fake reviews are more effective at the start of the rating period and the convergence of the hotel’s rating on its average takes more time. Provisional results show that, for the majority of hotels in Rimini, the average rating and its standard deviation is higher in TripAdvisor than in Booking.com, consistently with H1. Moreover, in line with H2, the convergence to the final values of average and standard deviation is longer in TripAdvisor, with a relatively larger share of extreme ratings in the early reviews, compared to what is shown by Booking.com. Such result holds also when we breakdown by category (2/3/4 star), location (city centre / seaside area) of the Hotel and through a cluster analysis. Finally, TripAdvisor tends to have a bimodal distribution of ratings, while Booking.com distribution is unimodal. The likely reason is that fake reviews (which are assumed to be higher in a non-certified system) tend to be concentrated in the top and the bottom part of the distribution. Keywords: Reputation; Fake reviews; Certified ranking systems; eWOM variance.
* Corresponding author: paolo.figini@unibo.it . The authors thank Marco Montanari for the precious assistance in data scraping.
The Role of Personal Photos in Generating Trust on Airbnb Eyal Ert, Aliza Fleischer and Nathan Magen Department of Environmental Economics and Management Hebrew University of Jerusalem
Abstract Sharing economy platforms such as Airbnb have recently flourished in the tourism industry. The prominent appearance of sellers’ photos on these platforms motivated our study. We suggest that the presence of these photos can have a significant impact on guests’ decision making. Specifically, we contend that guests infer the host’s trustworthiness from these photos, and that their choice is affected by this inference. In an empirical analysis of Airbnb’s data and a controlled experiment, we found that the more trustworthy the host is perceived to be from her photo, the higher the price of the listing and the probability of its being chosen. We also find that a host's reputation, communicated by her online review scores, has no effect on listing price or likelihood of consumer booking. This null effect is shown to stem from the uniformly high review scores on Airbnb. We further demonstrate that if review scores are varied experimentally, they affect guests’ decisions, but the role of the host’s photo still remains significant. We can conclude that guests on Airbnb use not only the listing’s information, but also the host’s information to make their decision. The reliance on the visual cues (hosts’ photos) might be facilitated by the bias of the non-visual one (hosts’ reputations). Nevertheless, the finding that the personal photos continue to play a significant role even when reputation varies implies that the reliance on the visual information is robust, and that the visual (hosts’ photos) and non-visual (reviews) information has an additive effect on trust building. This implies that the strong need for trust in sharing economy platforms leads consumers to use any information available to them. As we demonstrated, this information is not necessarily relevant and we are not sure if consumers use it consciously. However, sharing economy platforms must understand what consumers infer from both the visual and the non-visual information posted on their sites and should design their sites accordingly to attempt to reduce potential biases.
Who are the big spenders travelling to South Africa?
Alicia Fourie* School of Economics and Tourism Research in Economic Environs and Society (TREES), North-West University Melville Saayman Tourism Research in Economic Environs and Society (TREES), NorthWest University Elmarie Slabbert School of Tourism Management and Tourism Research in Economic Environs and Society (TREES), North-West University
Abstract To ensure that South Africa capitalises on tourist spending, this paper aims to apply expenditurebased segmentation to international tourists visiting the country. This study differed from previous ones in the sense that it also analysed how different attractions/destinations influence spending within the country. To achieve the aim, a survey was conducted at the OR Tambo International Airport in 2014, where 451 tourists participated in the survey. A two-step cluster analysis was used to identify two types of tourists: the average spender and the big spender. Results indicated that there was a significant difference between the spending habits of the average spender and the big spender at different attractions. It is therefore recommended that the South African tourism industry take note of where the big spenders spend their money compared to the average spenders. From an economic point of view, the industry should capitalise on the big spenders. Keywords: expenditure-based segmentation, spending behaviour, international tourist, attractions, poverty alleviation.
North-West University, Private Bag X6001, Potchefstroom 2520, South Africa. alicia.fourie@nwu.ac.za
Offshoring of Services as a Competitive Strategy in the Tourism Industry Fuster, B., Lillo-Bañuls A. Lillo-Bañuls, A.*; and Martínez-Mora, C. University of Alicante, Spain
Abstract The offshoring of services has steadily expanded in recent years and acquired growing importance in certain tourism subsectors. The present study analyses for the first time the offshoring indices and the trend seen in tourism services, based on input-output data (Spanish National Accounts) during the 2000-2007 expansive period. A distinction is made between offshoring associated with international fragmentation of production and offshoring due to a shift from domestic to foreign suppliers. The results point to a relocation of intermediate services to foreign countries in certain tourism subsectors (including travel agencies and air and maritime transport), involving both the international fragmentation of production and a substitution of the source of supply.
*
Department of Faculty of Economics. Department of Applied Economic Analysis. University of Alicante. alillo@ua.es
Evaluating the economic legacies of the 2010 FIFA World Cup in South Africa Dr María Santana Dr Shina Prof. Andrea Prof. Leo
Gallego, University of the Balearic Island, Spain Li, University of Surrey, United Kingdom Saayman, North West University, South Africa Jago, University of Surrey, United Kingdom
Major sports events are increasingly used by policy-makers to stimulate economic development. Indeed, the latest major sport events have been hosted by developing countries such as China, South Africa or Brazil. This has resulted in a growth of academic interest in ways of analysing their economic contribution. In that sense, Computable General Equilibrium (CGE) model has been considered as a very useful tool to quantify the economic impact on the host country. Previous papers have used CGE modelling to quantified the effect of mega events such as the London 2012 Olympics (Blake, 2005); Sydney 2000 Olympics (Madden, 2006); Beijing 2008 Olympics (Li et al, 2013) and South Africa 2010 FIFA World Cup (Bohlmann and Heerden 2005), among others. However, these papers focus in quantifying the impacts of the mega-event during the events. This study aims to quantify the economic legacies of the 2010 FIFA World Cup on the South African economy. We are not going to focus in a single city but in the whole country since the event was celebrated in several stadiums across the country. The novelty of this study is that it takes the first attempt to evaluate a wider range of legacies brought by a large event. Previous studies have taken into account the legacy effects when estimated the economic impacts of events (e.g. Li and Song, 2013). This paper will take a more holistic view to evaluate three types of legacies, tourism expenditures, Foreign Direct Investment and Exports. This objective is achieved by combining a gravity model and a Computable General Equilibrium (CGE) model. The methodological approach consists in two stages. In the first stage, a gravity model will be used to evaluate the international tourist arrivals to SA, net capital inflow and value of exports because of the 2010 World Cup. In the second stage, a CGE model will be applied to evaluate how the changes in tourist arrivals, capital inflow and exports affect the household welfare. References: Blake, A. (2005), The Economic Impact of the Olympics, TTRI Discussion Paper No 2005/5, Nottingham University Business School, Nottingham. Bohlmann, H., and J. Heerden. 2005. “The impact of hosting a major sport event on the South African economy.” Department of Economics Working Paper Series: 2005-09, University of Pretoria.
Li, S. N., Blake, A. and Thomas, R. (2013) "Modelling the economic impact of sports events: the case of the Beijing Olympics". Economic Modelling, 30: 235-244. Li, S. and Song, H. (2013) “Economic Impacts of Visa Restrictions on Tourism”. Annals of Tourism Research, 43: 251-271. Madden, A.R. (2006), ‘Economic and fiscal impacts of mega sporting events: a general equilibrium assessment’, Public Finance and Management, Vol 6, No 3, pp 346–394.
Market-segment targeting and long-term growth in a tourism-based economy Sauveur Giannoni*, Juan M. Hernandez**, Jorge Perez-Rodriguez** * UniversitĂ di Corsica Pasquale Paoli, UMR CNRS 6240 LISA ** Universidad Las Palmas de Gran Canaria
By 2025, travel and tourism industry could represent 10.5% of global GDP with an expected average growth rate of 3.8% a year. In a context of global crisis and slow growth, a growing number of regions are interested in developing their tourism attractions. Simultaneously, for almost twenty years, academic literature on the relationship between tourism and economic growth expands steadily. An important achievement of this literature is to support, theoretically and empirically, the so-called Tourism-Led Growth Hypothesis according to which tourism development fosters economic growth. Nonetheless, tourism is a delicate industry and a relevant strand of literature stress the fact that a tourism destination is going to face sooner or later a stagnation of its tourism revenue. A key issue of the tourism management literature is to identify strategies in order to rejuvenate a destination experiencing stagnation. Although it seems obvious that tourism-led growth is possible only if a destination does not experience stagnation in demand, to the knowledge of the authors, no previous theoretical paper addresses the crucial issue of the compatibility between TLG and the potential occurrence of a stagnation phase in the destination. The aim of this paper is to partly fill this gap and to provide a theoretical framework of tourism-led growth accounting for the possibility of rejuvenation strategies. A model of endogenous growth for a tourism-based economy is built following the argument of Romer (1986) according to which the engine of growth is a learningby-doing effect. Two important theoretical results are obtained. First, provided some conditions are satisfied, it is possible for a destination to identify a particular segment of the global tourism market compatible with sustained growth. Second, a destination experiencing stagnation can switch to a new market segment for which the level of welfare is higher in the long-run. The main contribution of this paper is to give theoretical support to the strategy of reorienting tourism supply toward more selected tourism markets in order to overcome stagnation. The common practice among mass tourism
destination stakeholders that consists in upgrading the quality of their supply to focus on new market-segments is theoretically proven to be a suitable practice in order to achieve optimal welfare in a tourism-based economy. Empirical investigations for Balearic islands validates the theoretical conclusions of the model. The case of Canary islands is a bit controversial since the reorientation strategy was not evenly implemented.
The Tourism Value Chain and The Prospects of Pro Poor Tourism. Babul Thomas Gomes, Adam Blake, Neelu Seetaram Bournemouth University Abstract: Value chain analysis encompasses the full spectrum of activities involved in the production or delivery of goods or services from the planning stages to inward logistics and on to delivery to customers or end users and final disposal after use (Kaplinsky and Morris 2000). In the tourism industry the typical value chain includes a range of functions and processes including booking, tour operators, international transport, local transport, accommodation, cafes, catering and retail. In addition, linkages to a wide range of service industries can be included within the tourism value chain process. Value chain analysis also incorporates analysis of activities in the informal as well as the formal economy. It is seen as a useful diagnostic tool which can identify critical issues and barriers for specific groups (Mitchell et al. 2009). Value chain analysis is useful because of its ability to identify activities which result in an increase in economic revenue and contribute to the local economy. There is research which indicates that due to import leakages and repatriation of profits, many tourism projects in emerging economies generate relatively low revenue for the local economies and consequently have little impact on poor households and on poverty alleviation (Chok and Macbeth 2007; Desforges 2000; Parnwell 2001; Scheyvens and Russell 2012). The aim of this research is to identify and measure the linkages and leakages in the tourism value chain in order to analyse the extent to which the tourism industry in Bangladesh is pro-poor. The linkages in the tourism value chain are complex and dynamic and their measurement has been the subject of
0
debate (Choudhury et al. 2005. There is a range of research providing empirical evidence on the effectiveness of pro poor tourism for individual projects or small scale areas (Jamieson et al. 2004) but little research that examines the linkages between tourism and poor households for large-scale destinations such as national economies. The proposed research studies the linkages between tourism and poor households in large scale tourism destinations. In this research each major activity along the tourism value chain in three tourism destinations in Bangladesh are analysed to identify whether the resultant revenue flows to poor households in local communities. Data will be collected using questionnaires through random sampling. Quantitative methods of data analysis will be employed. Based on the findings, recommendations will be made on the criteria for implementation of pro poor tourism strategies using value chain methods. The results of this research will contribute to knowledge about the application of value chain analysis in tourism with specific reference to the impact on poor households.
Keywords: Poverty, Pro-Poor Tourism, Value Chain Analysis.
1
Word-of-mouth communication and reviewer sentiment as indicators of quality in tourism Carla Guadalupi1, Universidad de las Islas Baleares Paul Wander2, Pontificia Universidad Católica de Chile Abstract Word-of-Mouth (WOM) communication is a powerful instrument for dissemination of product information prior to purchase. Indeed, when uncertain about product quality and characteristics, consumers are able to learn from their peers and tend to pay attention to their fellow consumers’ recommendations. WOM is particularly important in markets for experience goods, whose quality can only be ascertained only after interaction with the product, which often requires purchase. It is also particularly important for products sold by individuals or small firms via online platforms, where reputation is unknown and product standardization and quality control is limited. We conduct sentiment analysis of more than 200,000 online reviews for rental properties in San Francisco for sale on Airbnb and use the results to formulate several conclusions regarding the importance of WOM for sharing economy sales platforms. We classify reviews as varying degrees of positive or negative based on the Hu and Liu (2004) lexicon. We show that the vast majority of reviews are overwhelmingly positive, but that after a change in the way buyers and sellers mutual review each other, positivity decreased and negativity increased slightly. We show that review sentiment is highly correlated with price in a hedonic pricing model, and look closely at the effect of highly negative reviews on future price, (estimated) booking rates and market duration. The results highlight the importance of WOM communication in markets with large information asymmetries as well as the use of review mechanisms that facilitate honest information flows.
1
Departamento de Economía de Empresa, Universidad de las Islas Baleares, Ctra. Valldemossa km. 7.5, Palma de Mallorca, España, E-mail: carla.guadalupi@uib.es.
2
Instituto de Economía, Pontificia Universidad Católica de Mackenna 4860, Santiago, Chile, E-mail: pjwander@gmail.com.
Chile,
Vicuña
Behavior of Medical Tourism in Thailand Kansinee Guntawongwan1, Faculty of Economics, Chiang Mai University Vicente Ramos, Department of Applied Economics, University of Balearic Islands Akarapong Untong, School of Tourism Development, Maejo Univerity Mingsarn Kaosa-ard, Public Policy Studies Institute Abstract This article investigates the relationship between the experience of using medical services and future behavior intention of medical tourists in Thailand. The study employed the framework of the causal relationships between motivation, service quality, perceived value, satisfaction, and behaviour intention. A structural equation model (SEM) is used to analyse 351 primary observations obtained from the interviews with medical tourists in five private hospitals in Pattaya, Phuket and Bangkok. The model includes twenty-four observed variables, and five latent variables. The coefficients are estimated by MLR (maximum likelihood estimation with robust standard error). The empirical study demonstrated that medical service experience was the main factor affecting the satisfaction of the medical tourists in Thailand (qualities of the medical services and effectiveness of treatments are the indicators of medical service experience of medical tourists). Furthermore, hospital motivation (mainly captured by effectiveness of treatment) was the major factor that affected medical service experience. The results reflect that Thai government should support and encourage private hospitals to provide efficient services. These recommendations will allow medical tourists to receive worthwhile experiences of using medical treatments in Thailand, especially the experience on the quality of the services and effectiveness of the treatment. These actions will likely result in an increase of medical tourists' satisfaction, and good future behaviour intention as revisit or positive word of mouth (WOM).
1
Faculty of Economics, Chiang Mai University, 239 Huay Kaew Road, Muang District, Chiang Mai, Thailand, 50200. E-mail: kansineeg@gmail.com.
Determinants of Airbnb Demand in Vienna and its Implications for the Local Hotel Industry Ulrich Gunter and Irem Ă–nder, MODUL University Vienna* Abstract The so-called Sharing Economy has gained importance in major city tourism destinations around the world. In particular, staying at non-traditional accommodation establishments such as private apartments offered for short-term rental via the website of Airbnb (www.airbnb.com) has become increasingly popular. This development has also affected Vienna, which is one of the top-10 European tourist cities. Its advantages notwithstanding, this non-traditional form of accommodation also entails potential threats to city tourism, especially to the local hotel industry. The topic of the present research is therefore to identify key determinants of Airbnb demand in Vienna, to quantify their respective contributions in terms of demand elasticities, and to deduce management recommendations for the hotel industry. In doing so, a comprehensive cross-sectional data set from AirDNA (www.airdna.co) of all 7,864 Airbnb listings in Vienna that were active between July 2015 and June 2016 is examined. Estimation is carried out by employing Ordinary Least Squares (OLS) estimation using cluster-robust standard errors. Results show that Airbnb demand in Vienna is price-inelastic, thus there is room for revenue increases via price hikes. Demand is significantly positively influenced by the size of the listing, by the number of photos, and by the responsiveness of the Airbnb host. Significant negative drivers of Airbnb demand include its own price, distance from the city centre, and response time of the Airbnb host. The results are robust for different measures of demand, own price, and size of the listing, and also against the inclusion of additional variables such as extra fees or interaction terms. Potential implications for the local hotel industry are that, on the one hand, it should focus on its advantages compared to Airbnb in terms of its higher responsiveness, faster response time, lower minimum duration of stay, as well as higher room availability throughout the year. These advantages, which also Airbnb users seem to be looking for, need to be better communicated to potential customers. On the other hand, the hotel industry should increase its offer of bigger hotel rooms (e.g. suite rooms) since size and the possibility to host more than two guests at a time is one of the major benefits of non-traditional accommodation establishments.
1
MODUL University Vienna, Department of Tourism and Service Management, Am Kahlenberg 1, A-1190 Vienna, Austria, email: ulrich.gunter@modul.ac.at, phone: +43 (1) 3203555 411, fax: +43 (1) 3203555 903.
Measuring the impact of the European Capital of Culture programme on overnight stays: Evidence for the last two decades Martin Falk* (Austrian Institute of Economic Research); Eva Hagsten (University of Iceland)
Abstract The European Capital of Culture (ECoC) programme introduced in 1985 is regarded as one of the most successful cultural projects ever launched by the European Union (Palmer & Richards, 2007). So far, more than 50 European cities have hosted the ECoC. This mega cultural event attracts a large amount of domestic and international visitors, and leads to image enhancement and urban revitalization (Richards & Wilson, 2004; Palmer & Richards, 2007; GarcĂa & Cox, 2013; Liu, 2014). The aim of this study is to investigate quantitatively the impact of the ECoC designation on local tourism demand. Tourism demand is measured as overnight stays and the analysis takes into account the effect on the year of the event as well as the two subsequent years. Just like in the cases of Gomes and Librero-Cano (2017) and Srakar and Vecco (2017), the difference-in-differences estimator (DID) is used for the exercise. By use of a control group (cities non-treated) this estimator filters out the pure effect of hosting the event (city treated) by controlling for the average time trend and other factors that affect overnight stays. The control group includes either those cities with the highest degree of similar characteristics to the city treated, based on an index, or an average of all cities that have not been treated. In addition, to account for differences in the distribution of tourism flows across the two groups of cities, the quantile difference-indifferences (QDID) estimator is employed. Since the budgets of the event vary widely across cities and the application procedure as well as the political purpose has developed over time the effects are also estimated separately for each single host city. The main results from the quantitative analysis reveal that a boost in tourism demand, approximated by the number of overnight stays, is common in the year of the event, but rapidly declines. Three alternative estimators are used with similar results: difference-in-differences combined with propensity score matching, quantile difference-in-differences combined with propensity score matching and standard difference-in-differences. Detailed evidence for the 34 ECoC cities during the years 1998 to 2014 shows that the tourism effects are sizable and significant in the year of the event and insignificant in subsequent years. On average, hosting the ECoC lead to an increase by eight per cent in the year of event, which is equal to a rise in overnight stays by 40,000 for a representative city with about 500,000 overnight stays. Regressions for the 0.75 quantile confirm that tourism *
Martin Falk, Austrian Institute of Economic Research (WIFO), Arsenal Objekt 20, A-1030 Vienna, martin.falk@wifo.ac.at
effects are large and significant in the year of event and the following year but not significant in the second year after the event. Standard difference-in-differences estimates for each city separately show that long-term effects could only be observed in a few cases (Essen, GuimarĂŁes, Salamanca, and Tallinn). Another new finding is that there is large heterogeneity across the ECoC host cities, even in the year of event. Second tier cities with major heritage and cultural attractions benefit most (Weimar, Graz, GuimarĂŁes, Tallinn and Salamanca) while industrial cities gain the least or even suffer (negative effects are observed for Rotterdam, Liverpool, Genoa, Stavanger and Marseilles).
A growing model for the lodgings and services network in a destination Juan M. Hern´andeza,∗, Christian Gonz´alezb a
Department of Quantitative Methods in Economics, Institute of Tourism and Sustainable Development (TIDES), University of Las Palmas de Gran Canaria, c/Saulo Tor´ on s/n, 35017, Las Palmas, Spain b Department of Quantitative Methods in Economics, University of Las Palmas de Gran Canaria, c/Saulo Tor´ on s/n, 35017, Las Palmas, Spain
Abstract In this study, we present a network formation model that explains how the supply components in a destination (accommodations, attractions and services) grow and are connected each other through tourists’ behavior. A link between these components appear if a representative tourist staying in a certain lodging visits or enjoys a service/attraction during his/her stay. The probability that a tourist visits a service depends on a combination of a random choice and the previous popularity of the service, measured by the number of previous links to the service (service’s degree). We analyze theoretically and numerically the pattern of relationships between lodgings and services/attractions in the long term and found that follows a specific heterogeneous degree distribution, similar to those presented in scale-free topologies. The model results are compared with real data coming form a tourist area in Gran Canaria, Spain. Specifically, we have collected recommendations of lodgings and services/attractions in the destination published by tourists in tripadvisor.com during the period 2005-2016. Starting with this data, a bipartite network between those categories is built. Some topological metrics of the empirical data are calculated, such as degree distribution and clustering coefficient. The results show a good agreement between simulated and real data for specific values of the parameters in the model. The model and empirical results contributes to identify the characteristics of tourists movements within a destination. Keywords: destination, supply network, degree distribution, network formation model, tourist’s movements
∗
Corresponding author Email addresses: juan.hernandez@ulpgc.es (Juan M. Hern´ andez), christian.gonzalez@ulpgc.es (Christian Gonz´ alez ) Preprint submitted to Elsevier
December 16, 2016
Micro-economic determinants of FIT-tourist expenditures in Israel Shlomit Hon-Snir, Department of Economic and Management, Yezreel Valley College, Israel* Sharon Teitler-Regev, Department of Economic and Management, Yezreel Valley College, Israel Anabel Lifszyc Friedlander b Faculty of Medicine, Tel Aviv University, Israel
* Yezreel Valley College, Yezreel Valley, 19300, Israel , shlomith@yvc.ac.il, Abstract Tourism, one of the world's largest and fastest growing industries, exerts a major economic influence. The number of international tourists is growing every year and the relative portion of independent (FIT) tourists is growing as well. The characteristics of independent tourists differ from those of tourists who travel in organized trips. Independent tourists usually have more experience traveling abroad, know more about their destination and its culture, are generally more educated and are looking for challenges and self-fulfillment. In Israel, the number of international tourists is about 3 million and the income from inbound tourism is around 2.6 billion dollars a year, making it the country's third largest export industry. Independent tourism accounts for 60 percent of incoming tourism. Therefore, it is very important to understand the spending patterns of independent tourists and the effects of those patterns. The current research will use data collected by the Israeli Ministry of Tourism in 2015 from individual independent tourists at the end of their visit to Israel. The research covers 5864 questionnaires. The purpose of the research is to identify the factors that affect the individual tourist's expenses in Israel: total expenses, expenses per day, expenses per tourist, expenses per day per tourist, accommodation expenses, dining expenses and transportation expenses. The effect of each variable may change over different levels of total expenses as found by Marrocu, Paci, and Zara (2015). The QR theory is appropriate for analysing such cases. Preliminary results show that: • At lower levels of expense, only income has a (positive) effect on total expenses, while at higher levels of expense, both income and length of stay have (positive) effects. • The effect of income on total expenses is higher for higher levels of expenses than for lower level of expenses. • The number of sites visited during the trip has a (negative) effect on tourist accommodation expenses only for tourists with a high level of total expenses. Due to the increasing share of independent tourism in Israel and around the world and due to the importance of tourism to Israel, it is very important to understand the factors that influence the expenses and behavior of independent tourists. Understanding the factors that affect independent tourists' expenses in Israel can help Israeli policymakers in their promotional efforts to attract tourism to Israel. Marrocu, E., Paci, R., & Zara, A. (2015). Micro-economic determinants of tourist expenditure: A quantile regression approach. Tourism Management, 50, 13–30.
Data Envelopment Analysis to measure efficiency of hotels in Tunisia Rabiaa Hsouna, University of Tunis (El Manar), Laboratoire de Recherche Economie et Stratégies des Affaires, IHEC, Tunisia∗
Mondher Sahli, Victoria University of Wellington, New Zealand Hatem Salah, University of Manouba, Ecole Supérieure de Commerce, Laboratoire de Recherche ThEMA LR16SE10,Tunisia
Abstract There is a growing awareness amongst academics and policy makers for the need to develop robust performance management tools for hotels to be sustainable in today’s highly competitive environment. This study provides an original framework for efficiency measurement in the context of a country that has promoted ‘mass tourism package tours’ as a means of securing foreign currency earnings to finance needed imported goods for economic performance and industrialization. The purpose of this paper is twofold. Firstly, we present new tools to assess the performance of hotels in terms of labour and capital productivity. These new tools are based on the collect of 33 hotels’ internal accounting information over the period (2007-2010). As the Tunisian tourism industry has experienced a severe decline since the Jasmine revolution in January 2011, we preferred not to include the post revolution period in our analysis so that it does not influence the main results. Secondly, we examine further the hotel efficiency by proposing Data Envelopment Analysis (DEA) to explore whether there are differences in terms of productivity and efficiency between hotels of different size, age, star rating, location, ownership, nature of the business, mode of management, origin of managers and the availability or not of a thalassotherapy centre within the hotel. Our results show that over the period 2007-2010, the average efficiency of hotels in Tunisia was around 71.5%, but 60% of hotels performed at a lower level than the average. Furthermore, our statistical tests show that the efficiency of hotels varies significantly according to the age, mode of management and the origin of managers. However, the other selected attributes (size, type of product, region, hotel category, type of property and the availability of a Thalassotherapy centre) do not seem to have influenced the technical efficiency of our sample. The results of this paper offer useful insights for hotel managers and tourism policy ∗
Corresponding author: Rabiaa Hsouna, Laboratoire de Recherche - Economie et Stratégies des AffairesIHEC, Carthage, Tunisia. Email : rabiaa_hsouna@yahoo.fr .
makers, suggest ways of enhancing hotel productivity in Tunisia and provide guidance on which aspects to focus their attention in the decision making process.
Keywords: Hotels, Efficiency; Data envelopment analysis.
Understanding the Impact of Tourism on Economic Development: The Potential of Tourism Satellite Accounts Calvin Jones, Max Munday & Chen Xu Cardiff Business School
Abstract The causes of national economic development remain a subject of debate, not least in terms of tourism, with developmental benefits generally held to be positive but contingent on a number of factors. Similar findings describe the impact of foreign direct investment: In both cases the nature of capital ownership, labour use (and quality) and the source and direction of revenue flows appear very relevant. For countries that have significant or dominant tourism industries, developmental impacts at the aggregate national level are therefore important to understand, but research in this area has been somewhat limited, especially in regard to how the nature of the tourism industry influences the link between tourism activity and growth in GDP. The formalisation and development of the Tourism Satellite Account provides framework within which to better understand these relationships, and indeed to do so in a time- and country-comparative manner. This paper describes how the TSA structure might be amended and refined, whilst retaining UN-WTO compliance, to provide policy relevant intelligence on the likely or potential impact of tourism activity on national economic development, here through the accounting of capital ownership and labour use.
THE EFFECTS OF TERRORIST ATTACKS ON DESTINATION PREFERENCES OF DOMESTIC AND FOREIGN TOURISTS: A SPATIAL ANALYSIS FOR TURKEY’S REGIONS Mehmet KARACUKA* Ege University
Necmettin CELIK Ege University
Abstract Tourism is one of the greatly affected sectors in the economy by terrorist attacks that have been increasing dramatically in all over the world. This study aims to investigate the effects of terrorist attacks on domestic and foreign (from OECD Countries) tourism demand in Turkey. In terms of terrorist activities both the frequency degree and hardness degree of terrorism are taken into account as determinants of demand. The empirical analysis in this study covers the time period between 2001-2015 and all 26 NUTs-II regions in Turkey. The model considers the possibility of spatial dependency because of clustering patterns of the destination preferences at regional level, and employs Spatial Error-Fixed Effects Panel Model. Findings indicate that the hardness degree of terrorism has distortion effects on tourism preferences unlike the frequency degree. This demonstrates that there is a systematic relationship between tourism destination preferences and terror’s anxiety dimension on civilians. Furthermore, the effects of terrorism on preferences of domestic and foreign tourists are different. According to our findings, though unexpectedly, the distorting effects of terrorism are more significant on domestic tourists rather than foreign tourists. However, we also find that foreign tourists divert their preferences to more stable destinations as well. Furthermore, income level and exchange rate variables are also found to be significant, as main determinants of tourism demand, both for foreign and domestic tourists. We also find that tourism demand has positive spatial dependency. In other words, when there is an increase in average tourist number of neighbourhood destinations of a region, tourism demand for that region also increases. This means that tourism demand has positive spillover effects across regions. Keywords: Tourism Demand, Terrorist Attacks, OECD Countries, Turkey, Spatial Dependency, Panel Data Analysis. JEL Codes: C31, D74, R11, Z32.
*
Corresponding author; Ege University, Faculty of Economics, E-mail: mehmet.karacuka@ege.edu.tr, Phone: + 90 (232) 311 52 98
"What rationalities lie behind visitors' willingness to fund a hallmark event with public means?" The case of a music-festival in Sweden Anna Klerby* Background: The Swedish event sector is a mixture of private businesses, public administration-organisers and non-profit-organisations with different aims and financial prerequisites. The event of this study is a non-profit organisation with a minimum of public funding and was during the study period the largest music festival in Sweden, a hallmark event. The market conditions for events are relatively uncertain due to the income and expenditure structure. To the visitor the event is a collective experience. The social aspects of the experience make it interesting to analyse in respect to the visitors attitude towards tax funding the event, as a potential financial lifeline for the event managers. Objective: This paper examines whether the attitude towards funding an event with tax money can be explained through financial rationality, the values of collective actions, the political agenda or non-monetary self-interest aspects. Data and Methods: Survey data from app. 500 respondents visiting the 2010 Peace & Love festival in Borlänge. An ordered probit model is used for the estimation. Results: 55 per cent of the sample is positive to a regular tax funding to some extent if needed. The financial rationality is found significant among males, not among females. The males in younger generations with lower incomes are more in favour of tax supporting the event than older males with higher income. The visit as an expression of collective action is supported through the locals being more positive than non-locals, and through males, who are more positive if they are members of an association. The political agenda is not distinct in its influences, only males voting right-wing follow the expected behaviour of being negative towards tax funding the event. The non-monetary self-interest is only significant among females, expressed through playing an instrument themselves and whether the visit has increased their quality of life. Conclusion: The majority of the visitors are positive to tax support an event in need. The utility function for both females and males seem to be influenced by other aspects than strictly financial. The study adds to the analysis of how to value cultural experiences and how local politicians should prioritize allocation of tax money, but more research needs to be done. Keywords: event, music, public funding, attitude, tax, collective experience __________________________________________________________________ * Dalarna University. Department of Regional Science - Tourism. Borlänge. Sweden. akb@du.se
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The impact of tourism on retail Jeroen Klijs, NHTV Breda University of Applied Sciences, Department of Tourism, The Netherlands, klijs.j@nhtv.nl Joppe Curvers, NHTV Breda University of Applies Sciences Ondrej Mitas, NHTV Breda University of Applied Sciences Diana Korteweg Maris, HZ University of Applied Sciences Abstract Tourism and retail are closely linked. Observations in the field show that regions that attract many tourists generally have more establishments in retail than regions with less tourists. From the analysis of tourism expenditure this can be explained: a significant proportion of expenditure ends up in retail. However, economic impact analyses of tourism, for example based on a InputOutput model, do not reflect this relationship. They seem to underestimate the impact of tourism on retail. For example, in an economic impact analysis of tourism in the Province of Zeeland in the Netherlands about 30% of tourist spending ended up in retail, but ultimately only 3% of the total employment due to tourism is allocated to retail. This does not match local experiences and expectations. The Province of Zeeland and the municipality of Sluis put forward the question to investigate the relationship between tourism and retail. They would like a better understanding of this relationship in order to demonstrate the importance of tourist expenditure for the local economy and the local retail offer. Our aim was therefore to examine the relationship between tourism and retail spending in detail. For this we used a quantitative analysis. The relationship between tourism nights spent and the number of jobs in retail was analysed using a nonlinear regression model, based on data for all municipalities in the Netherlands. With this model it can be determined which part of the retail jobs in a municipality (the dependent variable) is there because of tourism nights spent, as well as the number of additional jobs caused by an increase in tourism nights spent. Control variables in the model are the share of residents of pension age (to control for differences in spending patterns and preferences between senior citizens and other age groups), mean standardized income (to control for differences among municipalities in the purchasing power of their inhabitants) and address density (as a proxy for different types of tourist destinations). Municipalities with a high address density are regarded as more urbanized destinations, while a low address density indicates a more rural character. Urban and rural destinations are expected to attract different types of tourists, and may therefore show different levels of touristic impact on the retail sector. In order to minimize multicollinearity among the variables used, the dependent variable (retail jobs) and the tourism nights spent were both expressed as intensities rather than their absolute values. This was implemented by dividing both
by the number of residents of the destination. The resulting model was run both for the retail sector as a whole, and for nine retail subsectors separately. The model developed can be used to calculate the impact of tourism for retail jobs in all municipalities in the Netherlands for which the number of tourism nights spent is known. It is therefore a useful addition to the existing tools for regional economic impact measurements in tourism. It is also a tool that can be used to reflect on the results of other economic impact calculations, for example the Input-Output model.
Competitive Structure of Accommodations in A Japanese Onsen (Hot Springs) Resort Area: A Spatial Econometric Approach
Shohei Kurata, Chiba University Yasuo Ohe*, Chiba University
This paper investigated the competitive structure of prices in a traditional onsen (hot springs) resort area in Japan from a spatial econometric perspective, which has not been introduced in the onsen resort areas that have been gradually losing momentum due to ageing of operators and diversification of leisure activities. The study area is one of the three oldest onsens in Japan, Dogo, Matsuyama, where hotels and ryokans are numerous. Spatial error models were employed to test the hypothesis that spatial closeness will intensify price competition while social closeness will mitigate price competition. The estimation results revealed that our hypothesis was verified in that the social network, which has been nurtured for generations in onsen areas, mitigated price competition in comparison with the non-onsen area in Matsuyama. Thus, good partnerships among local operators based on this social network should be more closely scrutinized toward revitalization of these traditional hot springs areas. Key words: spatial econometrics, onsen, hot springs resort, ryokan, spa, Japanese accommodations
*Corresponding author. Address: Department of Food and Resource Economics, Chiba University, 648 Matsudo, Matsudo, Chiba, 271-8510, Japan. E-mail: yohe@faculty.chiba-u.jp
Fast and furious? The impact of AirBnB in an important tourism destination: the case of Balearic Islands. Veronica Leoni (University of the Balearic Islands)* Paolo Figini (University of Bologna) Jan O.W. Nilsson (University of the Balearic Islands)
Abstract In the last few years a growing interest for what is commonly known as “sharing economy” has been recorded in academic research, media and everyday public discourse. Sharing is nothing new; what is new is the scale and the penetration of these experiences into daily life. Such developments also result in important structural and social changes in markets. Internet mediation leads to lower transaction costs. Online platforms allow people to obtain fast and reliable information about the available supply, thereby reducing time spent for information search, bargaining and enforcement costs. In many cases, the same market boundaries blur, allowing new players and new products to easily compete with incumbents. Online platforms currently offer several kinds of products and services, but sharing economy marketplaces have flourished particularly within the field of travel and tourism, in which locals supply services to tourists. As tourism is with no doubt one the sectors most affected by the introduction of ICT and, for this reason, it is in continuous adaptation with new trends, the constant renewing and the change in the social paradigm encourage people to choose alternative types of tourism far away from the traditional schemes. Inside what is usually called collaborative tourism we have, for example, activities of house swapping, ridesharing, couch surfing, dinner hosting and the similar, that might be a reflection of tourists’ desire of more real contact with the local community (Heo, C. Y., 2016). Within “Collaborative tourism”, Airbnb is one of the most popular companies. On a global level, this commission-based web-platform is now surpassing the major hotel chains in term of beds availability, and its disruptive power on tourism destinations and competitors, has been probably understood with a massive delay. This paper analyses a very important case-study for international tourism, the Balearic Islands, by assessing and evaluating the dimension and the growth of Airbnb offer in the accommodation sector of the islands, and to provide insights for tourism policy and planning. By performing statistical analysis on a rich panel of 32,000 observations (data has been collected through Airdna, a company scraping Airbnb pages twice a week, from June 2015 to September 2016), we develop a throughout empirical investigation by applying different methodologies. The starting point is the Hedonic Price Model where several interesting price elasticities can be estimated (e.g. with respect to the location of the apartment). In this line of research, we evaluate how the price is related to the information that the owner can provide, as a signal of the quality of the apartment, to the rating and to other characteristics. A second focus of the paper is more policy oriented, in order to detect areas where the rental market for tourist has flourished so far and helping forecast where, ceteris paribus, would be expected to expand. Provisional findings show that, although growing quickly, the market share of private apartments rented on Airbnb is still low, with relevant differences between areas and islands. Our results allow us to evaluate alternative scenarios of change in the current regulation of short-term letting in Balearic Islands, a process that is already ongoing. Results and conclusions of the study can be relevant also for other destinations and for other collaborative markets.
*
Corresponding author: veronica.leoni@uib.es
Examining the Determinants of Job Satisfaction among Tourism Workers Lillo-Bañuls, A.*; Casado-Díaz, J.M., and Simón, H. University of Alicante, Spain
Abstract Employees’ job satisfaction influences their commitment, exerts a relevant effect on the levels of quality and productivity and is therefore a crucial element in a highly labour-intensive industry such as Tourism. In this article the determinants of job satisfaction are examined in comparative terms for tourism workers versus those employed in the rest of the service sector. In contrast with previous research, the analysis is not restricted to hospitality workers, includes all types of occupations, and is based on a nationwide representative sample. Four explanatory models of job satisfaction are estimated using ordered logit techniques, considering personal and household characteristics as well as objective and subjective job characteristics. The results indicate that in some cases notable differences exist between the factors influencing job satisfaction in the tourism sector compared with the rest of the service sector, which might be relevant for managers and policymakers.
*
Department of Faculty of Economics. Department of Applied Economic Analysis. University of Alicante. alillo@ua.es
Income elasticity of overnight stays over seven decades Martin Falk, Austrian Institute of Economic Research (WIFO) Xiang Lin (University of Södertörn)1*
Abstract This paper provides new evidence on the stability of the aggregate income elasticity of tourism and travel demand. The model is estimated using the recently developed smooth time-varying cointegration regression model developed in Neto (2012) which greatly simplified the approach suggested in Bierens and Martins (2010). The time varying income elasticity is characterized by a series of functions of time serving as proxies of unobservable factors that affect the income elasticity. This paper implements the Fully Modified Least Squares (FMLS), proposed by Phillips and Hansen (1990), to regress the overnight stays on the Hadamard products of income with Chebyshev time polynomials. Time varying cointegration is tested by two approaches. First, we adopt the FMLS based CUSUM time-varying cointegration test developed in Neto (2014). This test has an advantage over the traditional residual based cointegration test by avoiding the possible under-rejection of the null of no-cointegration when possible structural breaks present. In addition, this paper also carries out a Wald timevarying cointegration coefficient test. Data are based on overnight stays in Switzerland by visitor countries for the period 1934-2015. The results show a time-varying long-run relationship between overnight stays and GDP per capita, despite the WWII and the Great Recession of 2008, the events can be characterized as structural breaks. This holds true not only for domestic overnight stays but also for foreign overnight stays of the seven major visitor countries. In particular, the domestic income elasticity is close to unity and relatively stable from the early 1970s onwards. The income elasticity of foreign overnight stays ranges between 0.7 and 0.9 depending on the visitor country. Income elasticities are highest in the 1960s but have not changed much from the 1980s onwards.
1
Department of Economics School of Social Sciences Södertörn University Alfred Nobels allé 7 141 89 Huddinge Sweden E-mail: xiang.lin@sh.se
Is there evidence for the tourism destinations convergence hypothesis in the crosscountry setting?
Yi-Chen Lin∗
Wen-Shuenn Deng†
Tamkang University
Tamkang University
Abstract
This paper presents new stylized facts on the evolution of the distribution of per capita international tourist arrival across 149 countries between 1995 and 2014. The results from nonparametric stochastic kernel estimation suggest that the external shape of the distribution of international tourist arrival per capita evolved from a twin-peak towards a unimodal one. The analysis of intra-distribution mobility reveals that countries at the lower tail of the per capita international tourist arrival distribution significantly improved their relative position. The Gini, Atkinson, and Generalized Entropy indices for tourist arrival per capita decreased substantially over time, suggesting that the distribution of tourist arrival per capita across countries has become more equitable, i.e., there was σ-convergence in tourism. Tests of absolute and conditional β-convergence provide strong evidence that tourist arrival in initially unfrequented destinations increased at a faster rate. These results support that there is tourism destinations convergence in the cross-country setting.
Keywords: Tourist arrival; convergence; distribution dynamics; stochastic kernel; nonparametric methods.
∗
Department of Economics, Tamkang University. Tamsui, New Taipei City, Taiwan 25137. Email:ylin@mail.tku.edu.tw. †† Department of Statistics, Tamkang University. Tamsui, New Taipei City, Taiwan 25137. Email:121350@mail.tku.edu.tw.
To Love or To Hate --The Investigation of the Attitude of Host to Tourism Development using a Utility Maximization Model Daisy X.F. Fan, Anyu Liu*, Richard TR Qiu The Hong Kong Polytechnic University
Abstract It is believed that the attitude of host to tourism development is essential for the success of tourism industry. However, some negative attitude towards tourism have been observed in some destinations such as Amsterdam, Barcelona and Hong Kong in recent years. Without the support of local residents, the sustainable development of tourism is difficult to achieve. Hence, it is imperative and valuable for both academic and industry to investigate the relationship between the attitude of host and tourism development. Although scholars have shed light on this issue for years (Milman & Pizam, 1988 ； Ap, 1992 ； King, Pizam & Milman, 1993 ； Hasani, Moghavvemi & Hamzah, 2016), the findings of most current studies are based on case study analysis. Although some valuable insights have been obtained, it is difficult to extract the rationale from induction research. To fill in this gap, a utility maximization model is developed in this study from the perspective of deductive. The model cannot only analyse the relationship between the attitude of host and tourism development, but also play as a benchmark for future research to investigate this issue under the same framework. It can be proved that as the development of tourism, the evolution of the host’s attitude is as follows: the attitude of host becomes more positive first and then starts to be less supportive when the number of tourist arrivals surpasses a certain level. At the very beginning of tourism development, although host has to share the public goods with tourists, as the number of tourist arrivals is much less than the population of host, the positive effects caused by private consumption and leisure would be larger than the negative impact resulting from the decrease of public goods consumption. According to social exchange theory, host shows positive attitude to tourism. When the number of arrivals reaches a certain level, the negative impact due to the loss of public goods offsets the positive influence, it is the maximized level of tourism development which the host can accept in the destination. Thereafter, as host shares even less public goods, the negative effects would be much larger than the positive aspects if the visitor arrivals keep increasing. As a result, the host would withdraw the supports of tourism development. The evolution of the
*
17 Science Museum Road, anyu.liu@connect.polyu.edu.hk
TST
East,
Kowloon,
Hong
Kong,
attitude is also consistent with the Irritation index model of Doxey (1975). To conclude, a utility maximization model is employed in this study to illustrate the social exchange theory and Irritation index model completely from the perspective of economics. In future studies, the model can be further expanded to calibrate various destinations. As the models are developed based on the same framework, the findings can be compared to further understand the relationship between the attitude of host and tourism development. The tourism demand can also be developed into an endogenous variable so that we could investigate the change of host’s attitude in a whole tourism area life cycle (Bulter, 1980).
Pricing Congestion on a beach. Analysis of an access fee to the protected island of Lobos (Canary Islands) Francisco López-del-Pino and José-María Grisolía-Santos, University of Las Palmas de Gran Canaria, University Institute of Tourism and Sustainable Economic Development (TIDES)
Abstract There is a growing need of instruments to control and reduce the impacts of the increasing number of tourists visiting protected natural areas. Among these economic instruments, the use of access fees shows positive effects on enhancing the environmental sustainability by reducing the number of visitors, and they are also a source of financing the management costs of the protected area. Among these negative impacts, users of beaches perceive congestion as a reason for reducing the final value of the touristic experience. This paper analyses the perception of locals of an access fee to enter into the small Canary island of Lobos, a protected natural area with nice beaches, whose quietness is endangered by an increasing number of visitors, clearly exceeding the current carrying capacity. This paper uses a discrete choice experiment to estimate the willingness to pay for entering in the island and reducing the congestion costs.
The present value of the past: Evidence on vacation memories and satisfaction with life Rico Maggi and Eva Vroegop, University of Lugano (USI) Switzerland
Abstract There is no doubt that everyone has a holiday memory. The question asked in this paper is what people remember from how far back, and how this links to their present evaluation of their satisfaction with life (SWL). The more specific curiosity that drives this research is how memories relate to a more close or distant past, and how they are discounted (Wolf, 1970). There are two strands of literature relevant to this: memory research on the one hand (for an overview see Kahneman, 2011), and the impact of holidays on SWL on the other (Sirgy, Kruger, Lee, & Yu, 2014). While the first one is very rich, the second is extremely scarce. This is regrettable, because understanding the importance of the holiday memory would not only help to understand the relevance of vacations over the life span, but also revisiting intentions and the role of word of mouth in holiday decisions. The scarce literature on the impact of holidays finds a very rapid decay in impact (Nawijn & Damen, 2014), which is surprising given the pleasure with which everyone remembers and talks about holidays long time after. The challenge addressed in our research is methodological. Memory research is almost exclusively based on qualitative research in the form of laboratory experiments and in-depth interviews. What we propose to do is eliciting memories using online surveys, the challenge being how to evoke memories, without opting for in-depth interviews remembering the whole life. What we do is use variants of an online survey where vacation memories are being evoked in different ways. The data collected so far indicate that holiday memories regard very recent vacations as well as ones from a very distant past, and more interestingly that the timing depends on the framing, i.e. the way in which they are being evoked. The descriptive statistics on a relationship between SWL on the characteristics such as time in variables and other controls on
preliminary dataset show the one hand and holiday past, duration, and socio-economic the other hand.
Keywords: Holiday memory, Present value of the past, Satisfaction with life (SWL) Topics: Experimental economics and tourism, Impact of tourism
References Kahneman, D. (2011). Thinking, fast and slow. London: Penguin. Corresponding Author: Rico Maggi, University of Lugano (USI), Institute for Economic Research (IRE), Via Maderno 24 - CP 4361, CH-6904 Lugano, Switzerland. Email: rico.maggi@usi.ch
Nawijn, J., & Damen, Y. (2014). Work during vacation: Not so bad after all. Tourism Analysis, 19(6), 759-767. Sirgy, M., Kruger, S., Lee, D., & Yu, G. (2011). How does a Travel Trip affect Tourists' Life Satisfaction? Journal of Travel Research, 50(3), 261-275. Wolf, C. (1970). The Present Value of the Past. Journal of Political Economy, 78(4), 783-792.
Corresponding Author: Rico Maggi, University of Lugano (USI), Institute for Economic Research (IRE), Via Maderno 24 - CP 4361, CH-6904 Lugano, Switzerland. Email: rico.maggi@usi.ch
Willingness to pay for common pool resources: A comparison between Ponta do Oura and Portofino Sandra Makumbirofa (PhD student) and Prof Andrea Saayman North-West University, Potchefstroom Campus Private Bag X6001, Potchefstroom South Africa 2521
Abstract The need to move towards sustainable Marine Protected Areas has long been dominated by efforts to minimise current consumption behaviour which renders coral reefs extinct for future generations. Since these Marine Protected Areas fall under common pool resources, the consequence has been the tragedy of the commons (the tendency of non-excludable rival good to be consumed until their marginal benefit falls to zero). One such consumption activity is scuba diving, where the fragile marine ecosystem is prone to destruction from diver activity. Using the user-payer principle, two study areas have been chosen: Ponta do Ouro Marine reserve in Mozambique which is rich in biodiversity especially coral reefs and Portofino Marine Protected Area in Italy which is also rich in biodiversity, less corals but famous for the moon fish and Christ of the abyss statue. This paper aims to compare the divers’ willingness to pay user fees towards conservation between Ponta do Ouro and Portofino Marine Protected Area. A contingent Valuation (CV) survey is conducted using the upper and lower bounded dichotomous choice questionnaire. This type of CV method is chosen mainly because it is more efficient and less biased than other CV methods. The willingness to pay results from the survey will be used to estimate the mean amounts, and calculate the user fee that are an indication of the divers’ willingness to pay to ensure sustainability. The willingness to pay will give an economic value to the marine reserves which will allow a comparison to be made between the two sites which, although offering the same product, offers vast differences in experiences. This should shed light on the environmental characteristics of the marine resources which divers value the most. Keywords: Contingent valuation; common pool resources; scuba diving; Mozambique, Italy
Andrea Saayman North West University, Private Bag X6001 Potchefstroom 2521 South Africa, Andrea.Saayman@nwu.ac.za
On the implications of Tourism Specialization and Structural Change in Tourism Destinations Simone Marsiglio University of Wollongong, School of Accounting, Economics and Finance, Northfields Avenue, Wollongong 2522 NSW, Australia simonem@uow.edu.au
Abstract We explore the relationship between tourism specialization and structural change, analyzing its implications for both economic growth and tourist flows. We consider a two-sector economic growth model where the development of tourism activities generates a production externality and a structural change which modify the resources-use intensity, ultimately affecting tourist flows. We characterize the balanced growth path equilibrium and analyze under which conditions structural change may generate fast economic growth, providing a theoretical support for the empirical evidence on tourism countries. We also show that structural change may alternatively lead to stages of rejuvenation, stagnation or decline consistently with what advanced by the tourism area life cycle hypothesis. By combining these different results, we also show that an eventual phase of decline generated by structural change does not necessarily have to be interpreted as a poor economic outcome since there might exist a bell-shaped relationship between residents' income and number of visitors. Keywords: Tourism Specialization, Tourism Area Life Cycle JEL Classification: O40, O41
Structural
Change,
Economic
Growth,
An analysis of long-haul tourist preferences for stopover destination visits Lorenzo Masiero1 and Richard TR Qiu The Hong Kong Polytechnic University
Abstract Long-haul travel experiences a positive trend in the global tourism industry. Airbus (2016) finds that more than 90% of the long-haul traffic in 2015 was generated “on-route/from/to� 55 cities (or aviation mega-cities). Airbus (2016) also forecasts that the number of cities that generate long-haul traffic will nearly double in the next 20 years. This represents a great opportunity for the development of city destinations but also a tougher competition among cities located in the same geographical regions. Aviation mega-cities needs therefore to exploit the potential demand from different market segments including their role as either main or secondary (stop-over) destination. By analyzing data for Hong Kong, McKercher and Wong (2004) illustrate how the two dimensions, namely, first-time/repeat visitors and main/secondary destination, are interrelated and influence the behavior of travelers. The proposed research aims to enhance the understanding of longhaul tourist preferences for stop-over destination visits. Based on experimental analysis, the research method is composed of two stages. The first stage relies on a stated choice experiment for long-haul destination choice while the second stage focuses on a set of questions regarding the willingness and motivation to trade time at the main destination with the opportunity to visit a stopover destination. A web-based survey was conducted among residents of the US, the UK, and Australia because these three countries are both English speaking and among the world’s top spenders. The management of sample and data collection was outsourced to a specialized research company to guarantee a sufficient number of observations from a representative sample within each of the three markets considered. The sample is composed of 500 long-haul leisure travelers per each of the three markets investigated, corresponding to a total of 1500 respondents. The data are analyzed through discrete choice models and regression techniques. Tourist preferences for stop-over destination visits are modeled as a function of traveler destination choice, travel pattern, motivation, personality indicators and socio-demographic characteristics. The results are expected to provide insight into the under-researched topic of stop-over tourism and guide aviation mega-cities toward a better understanding of the potential demand. 1
1
17 Science Museum lorenzo.masiero@polyu.edu.hk
Road,
TST
East,
Kowloon,
Hong
Kong,
References Airbus (2016). Airbus Global Market Forecast 2016. McKercher, B., & Wong, D. Y. (2004). Understanding tourism behavior: Examining the combined effects of prior visitation history and destination status. Journal of Travel Research, 43(2), 171-179.
Reference-dependent Behavior in Destination Choice: Stated Choice Experiment for Long-haul Leisure Travels MASIERO, Lorenzo and QIU, Richard TR1 The Hong Kong Polytechnic University Abstract Studies on tourism destination choices develop tools for destination management organizations to improve destination image and therefore attract more tourists. Knowledge of tourists’ preferences provides essential information to cost-benefit analysis in destination development strategies. Tourism destination choice process can be described as a process of evaluating trade-offs among different attributes of tourism destinations. The final decision on a choice implies that the benefits of visiting the chosen tourism destination exceed the benefits of visiting other alternatives. While the attributes of current alternatives are important for tourists’ destination choices, people also refer to their past travel experiences in evaluating current alternatives. A direct integration of the past experiences into a model for tourism destination choice is, therefore, crucial. The majority of current literature use past visitation as a market segmentation criteria or one of the influential factors. Prospect theory, in addition to that, allows the emerging of another treatment of past travel experiences: the standard of reference in comparing tourism destinations. This study aims to provide a solid theoretical contribution by introducing a referencedependent behavior perspective to the decision-making process of individuals when selecting a tourism destination. This study focuses on destination choice for long-haul leisure travels and thus analyses the long-haul tourism segment in depth. To achieve the research objectives, this study implemented stated choice experiment on 1,500 respondents from Australia, U.K., and U.S. to investigate tourist preferences and travel demand. A Mixed Multinomial Logistic (MMNL) model are used in evaluating the results of the experiment. Reference-dependent behavior, which is primarily focused on prices in tourism studies, is analyzed in relation to several attributes that influence the selection of a tourism destination. The preliminary results show significant differences between respondents’ sensitivity to gains and losses in terms of tourism destination attributes. Loss aversion is observed in most tourism destination attributes across respondents. Heterogeneity of respondents in terms of preferences on tourism destination attributes are also identified across the sample and find to be related to respondents’ personality, past travel experiences, and age. With parameters estimated by the model, measurements of willingness to pay (WTP) and willingness to accept (WTA) are derived. The two measurements provide important information for practitioners in their revenue management strategies. Resources can be withdrawn from the aspects that have low WTA and relocated to the aspects that have high WTP. Such resources relocation will potentially increase the revenue for both the industry and the government.
1
17 Science Museum Road, TST East, Kowloon, Hong Kong, richard.tr.qiu@connect.polyu.hk
The relationship between immigration and tourism supply: the case of Hotels and Restaurants in Italy Carla Massidda Department of Economics and Business, University of Cagliari, Cagliari, Italy. massidda@unica.it Ivan Etzo Department of Economics and Business, University of Cagliari, Cagliari, Italy. ietzo@unica.it, Romano Piras Department of Social and Institutional Sciences, University of Cagliari, Cagliari, Italy. pirasr@unica.it
Abstract Recent studies have demonstrated that in Italy the strong expansion of the number of immigrants has helped to give positive impetus to tourism demand by pulling international tourist arrivals, number of nights and total expenditure (Etzo et al. 2015). Conversely, there are not studies analyzing the nexus between immigration and tourism supply. The mechanisms that, from an increase in the stock of immigrants, can lead to a rise in the Italian tourism supply go through two main channels. The first is the consumption channel that is related to the tourism demand. In fact, the presence of immigrants stimulate tourism demand of goods and services and, therefore, the production activities aimed at its fulfilment. The second is the production channel that is powered by the presence of immigrants along two dimensions. On the one hand, foreign population represents workforce, mostly low-skilled, which often implies lower wages paid by firms. Under this perspective, in Italy foreign labour might create a favourable environment for opening new activities and/or rise the production scale of existing ones. On the other hand, immigrants can be entrepreneurs whose activity contributes to enlarge the tourism market by rising the number of firms and of their employees (natives and foreigners). The present paper aims to address this issue by investigating whether in Italy the presence of immigrants represents an opportunity for tourism firms to increase the number of local production units (establishments) and their employees. To this scope, we focus on the sector Hotels and Restaurants whose revenues are mainly given by the expenditure of tourists in Italy. As a matter of fact, according to the National Institute of Tourism Research (ISNART), more than 45 percent of total tourism expenditure in Italy is for accommodation and restaurant services. The investigation is conducted at both the nation-wide level and, separately, for the two macro-areas of the Country, namely Centre-
North and South. The analysis considers data on local units and their employees for 103 Italian provinces (NUTS 3) during the period 2004-2010. The empirical model, specified in terms of local units as well as of the number of employees, uses the immigrants share as the main explanatory variable. The other determinants of the model are the growth rate of value added per capita, the unemployment rate and the population density. The results from the two stages least square (2SLS) estimation strongly support a positive relationship between the provincial share of immigrants and the number of tourism establishments and their employees. This relationship seems to be stronger for southern provinces.
Foothold on Today, Outlook for Tomorrow: A Data Envelopment Analysis of Most Visited Global Art Museum
Renato Medei, CAST, University of Bologna∗ Laura Vici, CAST & Department of Economics, University of Bologna
Abstract Museums are non-profit institutions, open to the public, which acquire, preserve, research, communicate, and promote cultural goods (ICOM, 2007). They are permanent institutions driven by several purposes included education, scientific, and entertainment goals. In several tourism destinations, these cultural institutions are one of the primary attractions of the location, attracting not only cultural tourists and art-lover residents but also other segments of tourists. Despites their non-profit nature, museums serve the society optimizing their compound and collective goals but in the respect of economic constraints, effectiveness and efficiency conditions. Nowadays, in a period of public spending cut, assessing their performance is particularly important for cultural institutions for three main reasons: firstly, to identify those factors affecting the institution efficiency level; secondly, to promote the institution performances in comparison to other cultural organizations with fundraising aims; and third, to evaluate the attraction power of museums for the tourism destination, since non-resident visitors economically contribute to the destination GDP. The aim of this paper is to analyze and compare the efficiency level of a set of so called superstar art museums (Frey, 1998), detecting the real efficient institutions from a tourism perspective and the causes of their possible inefficiencies. The analysis is based on a sample of the 100 most visited art museums at World level (The ArtNewspaper, 2014). The complex nature of museums characterized by a different mix of activities, sets of inputs and outputs, with different ranking of priorities, diverse production processes, and heterogeneous human resource management mainly makes the definition of a unique efficiency measure difficult, complicated by the different nature of goals. To overcome the restrictions imposed by traditional performance assessment techniques, the Data Envelopment Analysis (DEA) technique has been adopted. DEA is an operational research approach which has proven to be particularly useful for evaluating the efficiency of organizations characterized by multiple input and multiple output structure. This quantitative method allows to compare the relative efficiency of the considered art museums, to ∗
Corresponding author: Renato Medei, Center for Advanced Studies in Tourism (CAST), Via AngherĂ 22, Rimini (Italy), renato.medei@unibo.it.
measure the inefficiency levels in terms of deviation from the frontier curve, and to distinguish between “pure� technical and scale inefficiency causes. Keywords: Efficiency; Envelopment Analysis
Art
museums;
Tourism
attractions;
Data
U.S. traveler classification based on their computer use in hotels abroad: Insight from a Latent Profile Analysis Cristian Morosan & Agnes DeFranco Conrad N. Hilton College of Hotel & Restaurant Management, University of Houston 4800 Calhound Rd., Houston, TX 77204, U.S. cmorosan@uh.edu Abstract Interconnectivity and Internet access in hotels is associated with a degree of cyber security risk, which has been increasingly prominent in recent years due to attacks and breaches on hotel systems and guests’ devices. Such risk increases as the consumers do not always have advanced knowledge of network security, data management/storage, and connect to public hotel networks and engage in online behaviors that jeopardize the security and integrity of the devices and the networks they are using. Given the gravity of the consequences of cyber attacks for both consumers and hotels, the lack of literature in this area represents a critical gap. This study proposes a methodology to classify U.S. consumers into classes based on their computer-related behaviors in hotels when traveling internationally, which represent behavioral responses to risk. Using the Protection Motivation Theory (PMT) as the main theoretical foundation, the study uses latent profile analysis (LPA) to distinguish among, and then characterize the resulting consumer classes based on their frequency of engaging in computer-related behaviors in hotels. Among several models, a four-class model was found to be the best theoretically interpretable model. The models were based on 24 indicators, which represented computer use behaviors that consumers can engage in while staying in hotels. Class 1 (n=97) had estimated means for indicators of 1.10, indicating that this class almost never engages in the behaviors described by the indicators. Therefore, this class tends to have a lower exposure to the risk associated with using computers in hotels. Class 2 (n=179) had estimated mean indicators of 2.50, and has a relatively lower frequency of computer use, therefore likely to be facing a lower degree of risk. Class 3 (n=362) had the highest means on all indicators and low variability, indicating that this class tends to engage in the behaviors described by the indicators. Class 4 (n=325) had the second-highest means of all classes, at 3.35 and a low variability. The class generally accesses secure resources, tends to bring important personal information with them, use email clients, and generally engages in a variety of tasks using computers. This study is the first to uncover classes (segments) based on computer-related behavior in hotels. As such, it contributes to the advancement of the literature in tourism and beyond, which includes segmentation studies predominantly based on traditional demographic, behavioral, and psychographic criteria, and which rarely takes into account behavior that put consumers’ devices, data, and hotel networks with risk. Moreover, as this is the first study addressing the use of computers in unknown settings, this study brings important contributions to advancing the literature in information systems, where most empirical studies are centered on predicting behavior that is aligned with a specific technology task.
Recreational sea angling and its effects on the English economy Max Munday1, Annette Roberts1, Neil Roche1, Adam Brown2, Mike Armstrong3, Jodie Hargreaves4, Sarah Pilgrim-Morrison4 and Kieran Hyder3. 1
Cardiff University, Colum Drive, Cardiff, CF10 3EU UK (mundaymc@cf.ac.uk) 2
Substance Coop, Manchester, UK
3
Office for National Statistics, UK. 4
CEFAS, UK
Abstract Evaluating the economic value of recreational sea angling is necessary in a number of related policy contexts, from tourism management and economic development policy, to the sustainable management of inshore fish stocks, particularly those seeking to in an ecosystems services framework. The research in our paper shows some of the issues in estimating the economic effects associated with recreational sea angling. In conclusion we provide estimates of the economic value of recreational sea angling in England. The results were derived from research undertaken in England in 2011-13 which was conducted as part a wide ranging government-funded study which attempted to develop intelligence of sea angler spending and activity. We show that recreational sea angling supported just over ÂŁ2bn of output and almost 24,000 jobs in England. Such information provides useful context and quantification of the possible economic consequences of government actions that may seek to limit, or enhance, sea angling activity.
Determinants of Innovation in Tourism: Theory and Evidence Van K Nguyen & Sarath Divisekera Victoria University, Melbourne Abstract Innovation is vital for long-term productivity growth, business improvement and competitive advantage. The need to be innovative has almost become a precondition for the survival, sustainability and future growth of the tourism. There is a dearth of empirical studies on innovation in tourism, the focus of existing studies has been on the exploration of conceptual and theoretical issues. The lack of empirical knowledge of the innovative process and its determinants presents a major obstacle to the development of strategies and policies to facilitate innovation. This study attempts to bridge this information gap by modelling and estimating the determinants of innovation among tourism firms in an Australian context. The theoretical foundation for the study is drawn from the economic theory of innovation and the binary regression model is used to quantify the determinants of innovation. The necessary data are drawn from the Business Longitudinal Database developed by the Australian Bureau of Statistics. Two tourism characteristic industries, Accommodation and Food Services and Arts and Recreation Services, are chosen for the study. The model is applied to five different types of innovation; goods, services, process, marketing and organisational innovation. Of the key determinants, collaboration for innovative purposes is found to be the most significant factor influencing innovation. The variable is positively correlated with all types of innovation outputs. Second in significance is human capital. Results indicate that increases in the stock of human capital positively affects the probabilities of generating product and organisational innovation. The third in significance is information technology. Increased adoption of IT is positively associated with higher probability of tourism firms implementing the process, organisational, and marketing innovation. Fourth in significance is funding. Financial assistance is found to be a significant factor that facilitates process and marketing innovation. Among the institutional factors, foreign ownership is found to be the most important driver, followed by market competition, firm size, and environment. Firms with some degree of foreign ownership are more likely to introduce innovation than domestic firms. The higher the degree of competition in the market, the more likely the firm will introduce or implement innovation. The larger the firm, the higher is the probability of it being innovative. To summarise, an attempt was made to explore the determinants of innovation in tourism using a longitudinal database and a binary
logistic regression model. In the process, this study makes several contributions to knowledge. First, drawn on contemporary literature, we develop a coherent conceptual framework incorporating unique features of the innovation process in tourism. Second, we employ a robust modelling strategy to explore and quantify the determinants of five types of innovation in tourism. The estimated models are found to be significant and fit the data well; the results are consistent with theoretical expectations and empirical realities. While the relative significance of each of the factors varies across the innovation types, they provide complementary insights about their role as the determinants and drivers of innovative efforts by tourism firms. The findings have implications for the theory, research methodology, and policy formulation. The study can be used as a benchmark for comparison with other similar studies. Keywords: Tourism Australian tourism
and
innovation,
Drivers
of
innovation,
Tourism Linkages, Income Inequality and Poverty Alleviation in Kenya: A Dynamic CGE Analysis Eric Tchouamou Njoya (University of Huddersfield) Neelu Seetaram (Bournemouth University) Abstract The aim of this paper is to identity the tourism linkages in the Kenyan economy in order to assess the effect of the expansion of this industry on income distribution and poverty alleviation in Kenya. The paper improves on the common practice in the literature by using the more comprehensive Foster-Greer-Thorbecke (FGT) index to measure poverty instead of headcount ratios only. The results demonstrate that tourism expansion benefits all household categories, but most of the gain accrues to medium and high income households. Industry-level results indicate that tourism expansion leads to an appreciation of the real exchange rate, resulting in the contraction of the traditional export sector confirming previous finding from the literature. This is mainly due to the contraction of the agricultural sector caused the appreciation of the real exchange rates. Consequently, the expansion of the tourism sector has only a marginal effect on the reducing poverty headcount. However, this paper demonstrates that the effect on poverty gap and poverty severity is nevertheless, significant for both rural and urban areas with higher impact in the urban areas. Tourism expansion enables poorer households to move closer to the poverty line improving their distribution of income.
Strategic orientation of hotels: Evidence from a contingent approach
Manuela Presutti (Department of Management, Bologna), Marco Savioli (Department of Economics, Bologna), Vincenza Odorici (Department of Management, Bologna)
Abstract Strategic orientation, which is considered a necessary condition to
achieve
important
and in
maintain
the
competitive
tourism
industry,
advantage, which
is
is
particularly
characterised
by
strong competition and a rapidly changing environment. This paper investigates whether different dimensions of strategic orientation (entrepreneurial, learning and market orientations) have a direct effect on hotel performance and whether the relationship between strategic
orientation
and
hotel
performance
is
contingent
on
various hotel-specific characteristics. The hypotheses are tested against a sample of 120 small hotels operating in a mature Italian tourist
destination.
The
results
show
that
although
entrepreneurial and market orientations are positive drivers of hotel
performance,
Moreover, performance (size
and
the is
learning
relationship contingent
quality).
Both
orientation between
on the
is
strategic
internal number
not
significant.
orientation
firm-related of
rooms
and
and
moderators the
star
classification reinforce the performance achievement of innovative and customer-oriented hotels
Forecasting International Tourism Regional Expenditure Benjamin Ognjanov ( Insyncresearch) Yihong Tang (Central University of Finance and Economics) Lindsay Turner (Victoria University)* Abstract The vast majority of tourism forecasting studies have centred on tourist arrivals at an aggregated level. Recent studies have begun looking at forecasting arrivals at regional levels. Little research has been done of forecasting tourist expenditure at a national level let alone at a regional level. This study uses expenditure data to assess the relative economic impact of tourism into regional areas and further develops an interest for further research on regional forecasting. Data from China is used for 13 main source markets into the 31 provinces of mainland China and an attempt is made to test some newer regional demand variables that can potentially aid in regional expenditure forecasting. Five time series models - the Naïve, Holt, ARMA and Basic Structural Model (BSM) with and without intervention, and three econometric models, the Vector Autoregressive (VAR) model and the Time Varying Parameter (TVP) with and without intervention are used for comparison forecasting 2 years ahead. The performances of the models are evaluated using mean absolute percentage error (MAPE) results. The results show that TVP models outperform other time series and econometric models. The research also provides practical management outcomes by providing methods for forecasting tourist expenditure as an indicator of economic growth in China’s provinces. The research concludes with the findings on the most appropriate model for regional forecasting and potential new variables suitable at the regional level. Keywords: Regional forecasting, tourism expenditure, China tourism
* Corresponding author: lindsay.turner@vu.edu.au.
Heterogeneous residents and sustainable tourism development Malgorzata OGONOWSKA, Dominique TORRE
Abstract : Tourism related activities rely on and, at the same time, have important impacts on the natural environment and on local populations everyday life. Tourists are attracted by environmental resources of the destination, but at the same time tourism makes extensive use of these resources and damages them. These damages often occur irreversible and are harmful for local residents. Since the late 1980s, residents began to gain more influence over the local choices made by governments concerning tourism development. On the one hand, tourism is considered by workers, storekeepers, craftsmen, and local governments as an important source of revenues. It brings jobs, new clients and taxes. On the other hand, residents who are not involved in tourism related activities, aware of pollution and its effects, react negatively to tourists causing damage to their environment, and disrespecting their way of life, culture and traditions. Since that time, new local models of tourism industry development have been promoted based on interactions among service providers, tourists, local authorities and residents. Many countries and regions have adopted a different approach to the tourism industry. In several mass tourism destinations, there is evidence of more responsible attitudes, while in others, sustainable concepts have been incorporated as fundamental components of local tourism development plans. In addition, some regions have chosen voluntarily to restrict tourist numbers to reduce pressure on the environment and to make tourism more acceptable to residents. Despite this move towards greater sustainability, in some cases, service providers have persisted with traditional forms of tourism by increasing the development of mass tourism or targeting high value customers. The dynamics that emerged have persisted and become consolidated during the last 30 years, with the co-existence in the tourism industry of many local models, differentiated by the number of tourists being targeted and respect for the environment and local culture. Against this context, if a given location desires to become a tourism destination, its economic tissue and local authorities have to take into consideration all effects that tourism development may induce, not only in economic, but also in environmental and socio-cultural terms. Therefore, this paper analyzes the influence of residents on the decisions made by public authorities regarding tourism development. It shows that taking into account residents perceptions accelerates the development of sustainable norms and policies. It investigates the reaction of market actors to these new policies, which can have two different outcomes. Indeed, service providers can either choose to meet the new sustainable standards, or to reduce the extent of their activity to a level acceptable for the residents. JEL Classification: L83, Q56 Keywords: Tourism Economics, Product Heterogeneity, Sustainable Tourism, Residents heterogeneity, Government Intervention, Environmental and Sustainability Norms, Public Choice.
Exploring the Dynamics in the Airline - Airport - Tourism Destination Authority Relationship Andreas Papatheodorou, University of the Aegean, Greece
Abstract The liberalisation of air transport markets at a global level means that airlines have greater freedom to choose where they fly to and from, and generally set fares, frequencies, capacities and routes according to commercial considerations. This has provided opportunities for airports to grow and expand their services and for tourism destination authorities to successfully promote their places to a wider audience. Nonetheless, it has also meant that airports are exposed to more risk from changes that airlines may make to the services that they provide. Likewise, tourism destination authorities may end up trapped into providing direct and/or indirect subsidies to airlines and airports that are deemed as illegal e.g. by the European Commission due to competition distortion or prove to be of limited added value. Transformations in the way that airports are owned and operated mean that, just as airline decisions are driven more by commercial considerations, so too are the decisions of airports. Airports have relatively large fixed infrastructure costs but low marginal costs of processing extra passengers who can provide additional revenue from commercial activities. This helps explain why it is so important for airports to seek growth and expansion. However, there are often investment needs associated with attracting new or expanded services, and the risk of investment is likely to be high given the relative freedom that airlines now must enter and exit the market with aircraft that are effectively mobile assets. Airports on the other hand generally have sunk assets, and are therefore vulnerable to reductions in traffic or the withdrawal of services altogether. New types of airline business models such as low cost carriers (LCCs) that have emerged because of liberalisation have provided traffic growth for many secondary and regional airports allowing less known tourism destinations to turn their peripherality into an advantage and set the fundamentals for progression in the tourism area life cycle. Nonetheless, the growth often comes from a single operator and therefore adds risk to the airport business and the tourism destination resulting in abrupt changes in tourism flows. Having the above in mind, the important yet fragile relationship among the three stakeholders, i.e. airlines, airports and tourism destination authorities may be bruised by a ‘lethal quartet’, i.e. white elephants where heavy airport investment in grandiose infrastructure is never fully recovered; winner’s curse where airports and/or tourism destination authorities outbid their peers by offering airlines too preferential terms to benefit sustainably in the longer term; free riding and coordination failure as few local tourism service suppliers may truly end up supporting financially regional airports and/or local tourism destination authorities in their efforts to attract airlines and improve accessibility; and the spatial, market and temporal risk of airports and tourism authorities as a result of strategic partnerships with a single airline operator. In fact, profit or welfare maximization of the three involved stakeholders from an individual perspective will inevitably lead to a conflict of interests because of their revenue/cost structure and the emerging transaction costs. The presentation highlights all the above issues from a conceptual point of view to conclude that subject to legal constraints, such a triangular relationship may become a ‘triple win’ by taking the shape of a long term trilateral agreement involving structural changes in airport charges; and the emergence of investment hostages, which may even lead to vertical governance.
Does the hotel supply take advantage of the opportunities of experiential tourism? A Case study in Sóller. Margarita Payeras. Department of Applied Economics, University of the Balearic Islands (Spain) [margarita.payeras@uib.es] Marta Jacob. Department of Applied Economics, University of the Balearic Islands (Spain) [marta.jacob@uib.es] Carmen Florido. Department of Applied Economic Analysis, University of Las Palmas de Gran Canaria (Spain) [carmen.florido@ulpgc.es] Abstract The main objective of this research is to seek new strategies that will allow the hotel industry in a rural area of the Balearic Islands (Sóller) to enhance their competitiveness and to mitigate the seasonality of their tourism activity, mainly through the development of new innovation strategies based on supplying experiential tourism products and services. Some secondary objectives are: 1) To identify the experiential tourism products in Sóller, situated in the “Serra de Tramuntana”, which was declared a world heritage site by Unesco; 2) To analize the supply of experiential tourism products and services by the hotel supply in Sóller; 3) To identify which experiential tourism products have helped the hoteliers to de-seasonalize their activity; 4) To evaluate if the complementary industries to the hotel sector have taken advantage of the experiential tourism strategies of hotel firms; and 5) To analyze the public-private and privateprivate sector collaboration initiatives in order to develop experiental products, taking into account that tourism is a complex sector where many players contribute to the final consumer experience. Four main sources of data will be used: (i) qualitative data from websites of hotels located in Sóller and from the online accommodation booking websites offering hotels in Sóller; (ii) quantitative data on innovation activity obtained from face to face interviews to hoteliers in Sóller; (iii) quantitative information obtained from face to face interviews with a sample of complementary industries or services to the hotel sector; and (iv) qualitative information obtained from interviews with DMOs. Different econometric techniques will be used, using the SPSS statistical package. Results provide some evidence to state that seasonality of tourim activities can be reduced through the development of experiential tourism products and services, increasing consumer loyalty and repetition to the destination. The analysis of the hotels' websites indicates that they have not designed properly their marketing to take advantage of the experiential tourism products developed. Furthermore, there is little coordination
among the different players in the design and promotion of experiential tourism strategies. Long-term competitiveness in tourism requires meaningful and appropiate management approaches where a multi-stakeholder partnership is an important element for the promotion and development of a tourism destination. There is an opportunity for improving the coordination among the different players operating in Sรณller to design and promote experiential tourism strategies, offering new experiences to the tourist which appeal to their feelings, using all or several of their senses. The hotel sector must take advantage of these experiential tourism strategies to add new value through upper premium prices in order to differentiate from competitors and increase customer loyalty.
Smart tourism and creative tourism. A model of interpretation. Margherita Pedrana, European University of Rome margherita.pedrana@unier.it
Abstract
Smart has become a new buzzword to describe technological, economic and social developments fuelled by technologies that rely on sensors, big data, open data, new ways of connectivity and exchange of information (e.g., Internet of Things, RFID, and NFC). Practically smart becomes also a general concept often used to drive specific political agendas and to sell technological solutions. For what concerns smart tourism, the application is linked to destinations and to the capability of being creative and technological driven. Creative industries are the innovative cluster in a specific area and they are one of the factor for successful economic areas. Also in the study of Florida, 2002 the importance of creativity, from the point of view of the creative class, is underlined in order to understand the role of creativity and innovation in cities. The main purpose of this paper is first of all to define smart and creative industries, starting from the regional and local economic development literature, linking together the two concepts, specifically in the tourism industry. After the definition of what we understand with creative industries, we will match the two features of a territory, in order to understand how creativity, innovation and tourism may co-exist on a specific area and help in urban and local economic development. In order to understand also socio-cultural features we will use a proxy of social capital. We want to map tourism destinations in Italy and their relationship with creative industries and social capital, in a single model. The aim of the paper is to understand whereas all destination may be creative and which are the condition to create or recreate the virtuous circle of development of a tourism destination. This may be important not only for new destination but also for mature ones. The results show that the presence of creative industries is correlated with tourism specialization of a region and with the level of technology or of being smart.
The paper is organized as follows. First of all, definitions of creativity, creative industries and smart tourism are presented. Secondly, the model of analysis is discussed, with the main hypothesis. Thirdly the main findings are showed. Finally, some conclusions also from a policy point of view are drawn.
Stochastic frontier estimation of holiday budgets for Multiple DiscreteContinuous Extreme Value model: An application to tourist expenditure analysis Understanding the dynamics of visitor expenditures represents one of the main strengths that a tourist destination may hold and this is particularly true considering the evolution of the tourism industry characterized by cheap flights, do-it-yourself experience and sharing of information and experiences on social media. Traditional analyses on this subject focus on two approaches: the first one does not distinguish among expenditure categories; in the second case, when this distinction is considered, the approach only focuses on one particular category at a time. Given that tourists take multiple, non-mutually exclusive decisions of expenditure allocation, we implement a Multiple Discrete-Continuous Extreme Value (MDCEV) model to understand tourist expenditure behavior. Specifically, we propose an empirical framework able to model simultaneously both the tourists’ decisions to distribute their expenditures on different activities and products and the amount of money spent on each category of expenditure. We also contribute to the existing literature by deploying a stochastic frontier approach to estimate holiday budgets for the MDCEV model. This approach is essential when the underlying money budgets addressing a situation choice are unobserved, but the expenditures on the choice alternatives of interest are observed.
Tourism specialization across qualities in Europe Nowak Jean-Jacques, RIME Lab, Université de Lille 1, France. Petit Sylvain, Institut du Développement et de la Prospective, Université de Valenciennes et du Hainaut-Cambrésis, France. Abstract. Despite the significance of tourism in international trade today and its economic importance for host countries, there has been relatively little empirical research devoted to the study of international flows of tourism services or to tourism specialization. All existing papers consider tourism as a homogeneous product when analyzing international specialization and thus reinforce the stereotypical image of countries in the South as highly specialized in tourism services and countries in the North as highly specialized in other activities. This image is especially dominant for Europe (Mediterranean countries versus Northern countries). However, tourism turns out to be a highly differentiated product, in particular regarding the dimension of quality. Many empirical works have stressed the strategic role of quality in a given tourism destination’s attractiveness. Others showed that European tourism flows are dominated by two-way trade (simultaneous exports and imports of tourism services between two countries) with a large predominance of vertical differentiation (i.e differences in quality). This suggests that the pattern of tourism specialization across countries may be, at least in Europe, much less simplistic than usually claimed: besides taking place between tourism and other sectors, international specialization may also take place in Europe within the tourism sector itself, along the spectrum of quality, with both Northern and Mediterranean countries specialized in tourism services of different quality levels. The purpose of this paper is to investigate this hypothesis. We examine tourism specialization patterns for a sample of 22 European countries over the period 2010-2014 by considering three different quality levels for tourism services (high, medium, low). Assuming that, in line with the literature, differences in quality can reasonably be proxied by differences in export unit values, the first step was to define such values for each bilateral tourism trade flow. We used the OECD database and a specific method for harmonizing mirrored data and correcting for the so-called Penn effect. The second step was to compare each tourism services export unit value to a sample norm in order to define three market segments: upmarket, middle-market and down-market tourism services. The third step was to split up tourism exports of each of the 22 European countries into these three market segments. Lastly, revealed comparative advantages have been computed for each country and each segment using the “contribution to the trade balance” indicator (Lafay, 1992), at both the bilateral level
(between two countries) and the multilateral level (between a country and all its partners). The results of this study are clear and unambiguous: specialization in tourism is unquestionably a much more subtle phenomenon in Europe than usually claimed. It takes place along ranges of quality, with most European countries positioned on different market segments. Even countries displaying a large global comparative disadvantage in tourism at the multilateral level have a comparative advantage in some segment. And conversely, countries having a large global comparative advantage in tourism always display comparative disadvantages in some segment.
Re-examining French tourism performance with fsQCA: A regional perspective Nicolas Peypoch and Bernardin Solonandrasana, University of Perpignan1
Abstract Traditionally, tourism destination performance in the literature is analyzed by using two kinds of approaches: non-parametric and parametric methods. The purpose of this paper is to proposes a new look by analyzing the dimensions of French tourism performance by using fsQCA (fuzzy set Qualitative Comparative Analysis). In this contribution, the tenets of complexity theory are tested by using the French tourism regions. This case study is relevant regarding the French tourism paradox which underlines the relative inefficiency of France (regarding its tourism arrivals and tourism receipts) and which exists from the 80’. The dataset covers yearly time-periods from 2013 to 2015. Several dimensions or variables based on labor and capital factors can contribute to the explanation of the tourism destination performance. In this paper, we use antecedent conditions about accommodation capacity, number of employees and tourism attractions. Two models are estimated corresponding to two outcomes of interest which are key indicators in tourism economics: tourism arrivals and tourism bed-nights. The findings indicate that none conditions are necessary or sufficient. Few configurational paths (combinations of conditions) are sufficient to explain the French regional performance in both models. These different configurations allow a new explanation of the French tourism sector at the regional level compared to the traditional approaches which are based on benchmarking and/or econometric analysis. The fsQCA findings of this study support the tenets of the complexity theory. Finally, predictive validity of the models is tested by splitting the whole sample into two subsamples: a modeling subsample and a holdout subsample. Different time-periods are used for this step, for instance by testing the model for data from year t on separate data for year t+1. The findings support the need for policy makers to pay attention to the multiple ways in order to obtain high levels of tourism arrivals and tourism bed-nights. These two indicators illustrate the French tourism paradox and the economic implications of this study reveal the paths to achieve better tourism performance at the regional level.
1
IAE, CRESEM, 52 avenue Paul Alduy, F-66860 Perpignan cedex. peypoch@univperp.fr and solo@univ-perp.fr
Environmental Attitudes of Birdwatchers: A Case Study in Portugal Pedro Pintassilgo Faculty of Economics and Research Centre for Spatial and Organizational Dynamics, University of Algarve Patrícia Pinto Faculty of Economics and Research Centre for Spatial and Organizational Dynamics, University of Algarve Andreia Sofia Costa Faculty of Economics, University of Algarve António Matias Faculty of Economics and Research Centre for Spatial and Organizational Dynamics, University of Algarve Maria Helena Guimarães Landscape Dynamics and Social Processes Group, Instituto de Ciências Agrárias e Ambientais Mediterrânicas (ICAAM), University of Évora
Abstract: Birdwatching is a growing tourism sector worldwide. In the Algarve, the southernmost region of continental Portugal, the potential for birdwatching tourism is widely recognized, especially in the Ria Formosa Natural Park (RFNP). This study aims to assess the environmental attitudes of birdwatchers’ in the RFNP. For this purpose a survey was applied. Birdwatchers were asked about their willingness to pay to improve the overall environmental conditions of the activity in the RFNP. The results show that 92% of the birdwatchers would be willing to pay an entrance fee to fund birdwatching facilities at the location. On average they were willing to pay an entrance fee of 4.29€. The environmental awareness of the respondents was also examined using the New Environmental Paradigm (NEP) scale. The results show that birdwatchers have a high environmental consciousness. The overall NEP score was 4.22 which indicates a proecological attitude. Finally, the respondents were assigned to segments through a ChiSquared Automatic Interaction Detector (CHAID) method. Keywords: Birdwatching, Environmental Behavior, New Environmental Paradigm, CHAID.
Income inequalities and tourism development in Argentina: a regional approach Natalia Porto and Natalia EspĂnola, National University of La Plata, Argentina
Abstract The aim of this paper is to analyze the effects of the development of activities related to tourism in the regional structure of income in Argentina. In particular, we explore the determinants of regional wage inequalities and its relationship with the development of tourism through the estimation of an error space model for 29 urban agglomerations in Argentina during the period 2004-2015.
As a proxy for tourism development, we elaborate four indices of touristic amenities: natural amenities based on earth, natural amenities based on water, built cultural amenities and built recreational amenities. We interact these variables with employment tourism in order to use them in the laboral income inequality estimations. Since amenities are not located randomly and they are usually grouped together, they should not be treated as random variables in linear classical models and the model of error space is the appropriate method to incorporate the spatial autocorrelation of the amenities through the error term. The results suggest that certain types of amenities, particularly the natural ones, are clearly related to the distribution of income, and there is an unequalizing effect of the share of employment in tourism.
Economic Impact of low-cost carrier in a saturated transport market: Net benefits or zero-sum game? Stephen Pratt, The Hong Kong Polytechnic University Markus Schuckert, The Hong Kong Polytechnic University Abstract Low-cost carriers in the aviation market became a very effective instrument for value creation and driver of competition. Several examples from North America and Europe show that low-cost carriers improve the accessibility of destinations, activate hidden demand from a given catchment area as well as reallocate demand, offering transportation on a different price level. This present study estimates the economic contribution of the entrance of an additional low-cost carrier into saturated/mature transport market using a quantitative approach. Both primary and secondary data is used to estimate both direct and indirect economic impacts. This research framework captures both displacement effects and the demand for domestic travellers leaving the destination. Taking these effects into account, the case shows limited net economic contribution to the host economy. Based on these findings this contribution will give implications for local governments as well as airport and aviation services providers as well as implications and further research opportunities.
International Association for Tourism Economics (IATE) Conferences: A History Stephen Pratt, The Hong Kong Polytechnic University Stephen Wanhill, Tourism Economics / Bournemouth University Abstract This paper briefly outlines the history of the International Association for Tourism Economics (IATE) Conferences, its origins and growth. The paper then uses content analysis of the first five conference programs (2007, 2009, 2011, 2013, 2015) to determine several conference metrics such as number of attendees and presenters per conference, number of repeat presenters, proportion of conference presenters by affiliation and country as well as from the host institution. The last section of the paper examines the major themes of the presentations given. Some possible future directions of the IATE conference are discussed.
FILM FESTIVALS AS A CULTURAL AND ENTREPRENEURIAL SOURCE FOR LOCAL DEVELOPMENT: IL CINEMA RITROVATO CASE STUDY Barbini, F.M, CAST & Department of Management, University of Bologna Boari, C., CAST & Department of Economics, University of Bologna Presutti, M., CAST & Department of Management, University of Bologna∗ Vici, L., CAST & Department of Economics, University of Bologna
Abstract PURPOSE OF THE STUDY. This paper investigates the relevance of entrepreneurship in the case of a cultural event, with a focus on its impact on tourism. So doing, we capture the link between entrepreneurship, cultural attitude, and impact on tourism. METHODOLOGY. This research is based on the case of Il Cinema Ritrovato, a film festival organized by the Cineteca di Bologna. A longitudinal analysis of managerial choices related to the organization of the event and a survey have been carried out during the 30th edition of Il Cinema Ritrovato. To collect data, we adopted qualitative and quantitative methods: we gathered secondary data such as documentations, newspapers and press releases, and reports, following a longitudinal perspective focused on the emergence and growth of the cultural event; in addition, we gathered primary data through face to face interviews with six managers involved in the Festival organization and through a survey based on questionnaires submitted to the participants. FINDINGS. The longitudinal analysis highlights three different periods regarding the entrepreneurial approach to this cultural event: a pioneering period, a learning and networking period, and a consolidation and internationalization period. For each period, we analysed strategies, policies, resources and competences modelling the correlated cultural entrepreneurship aimed to spread high levels of culture. This entrepreneurial approach is also characterised by a positive economic impact on hospitality and food and beverage industries, and in general on tourism in the city. ORIGINALITY. Il Cinema Ritrovato is an important cultural event which following an entrepreneurial approach is contributing to the diffusion of local culture and the creation of wealth through tourism development. The paper shows how the sound management of a cultural event is likely to produce an offspring of economic benefits. In this context, tourism acts as a flywheel, allowing a ∗
Corresponding author, Center for Advanced Studies in Tourism & Department of Management, University of Bologna, Via Capo di Lucca 34 – 40126 Bologna, Italy, manuela.presutti@unibo.it
widespread exploitation event is providing.
of
the
potential
benefits
the
cultural
POLICY IMPLICATIONS. This would require a new and proactive role for local public administrations, which are required not just to increase funding but first and foremost to stimulate the organizers of cultural events to plan and exploit the tourism attractiveness of such events.
The migration-tourism nexus in the EU28 Davide Provenzano Dipartimento di Scienze Economiche, Aziendali e Statistiche University of Palermo1
Abstract This study explores the nexus between tourism and migration on an intra-European scale over the period 2000-2015. Complex-network analysis and gravity models were the investigation methods preferred. We first compared the network structure of migration stocks and tourism flows between the 28 member countries of the European Union (EU28). For each year under study, we built two country-to-country networks to map and reveal the pattern of connections between states as shaped by migration stocks and tourism flows, respectively. Then, we performed several econometric analyses to study the main tourism determinants and the correlations between migration and tourism. Migration data used in the study were extracted from the OECD International Migration Database and integrated, when necessary, with data downloaded from EUROSTAT. Migration status was defined in terms of nationality. We referred to migration stocks rather than to flows, as the former are representative of a long-term equilibrium and are based on national censuses that make data more reliable than the annual report of migration flows. Tourism data were provided by the World Tourism Organization, the Statistics and Tourism Satellite Account, and integrated with tourism data available on the national statistical office of the individual countries, when necessary. We limited ourselves to data about visits on a country-by-country basis including at least one overnight stay and omitting day trips. Country-specific data such as gross domestic product in purchasing power parity (GDPppp) was extracted from the International Monetary Fund (IMF) – World Economic Outlook (WEO) database (version October 2015). Between-country geographical distance (DIST), computed as the distance between the capital city of the origin and destination countries, and several dummy variables indicating whether two countries share a common border (BORD) and/or a common official/primary language (LANG), have ever had colonial ties (COLON), share a common colonizer after 1945 (COL45), and are parts of the same country (SMCTR) were instead downloaded from CEPII dataset. All these variables were assumed to be pull and push factors (determinants) for the tourism flows and migration stocks. With reference to the EU28, this study derives an estimate of the contribution of permanent migration to the overall tourism phenomenon as well as the capacity of tourism to generate new migration flows. 1
Viale delle Scienze (Parco davide.provenzano@unipa.it
D'Orleans),
Ed.
13,
90128
–
Palermo.
Email:
Economic and social yield of investing in hiking tourism: The case of BerguedĂ , Catalonia, Spain Josep Raya, Esther Martinez-Garcia, Dolors Celma
Abstract Not much is known about the overall costs and benefits of investing in hiking tourism, its economic and also its social yield. This article employs a cost-benefit analysis methodology to contribute to knowledge in this area by estimating both the economic impacts and the social costs and benefits of investing in hiking tourism. It includes tangible and non-tangible impacts, such as health benefits and CO2 emissions. The chosen location is BerguedĂ , a region of Catalonia, Spain. Results show every euro invested by the public sector in hiking tourism produces an estimated return to society close to â‚Ź5. Research limitations are amongst others, those related to establishing the boundaries to the number and type of benefits and costs to be included in the analysis and the need to use secondary data in some estimations.
The economic rationale for Government intervention to reduce seasonality Javier Rey Maquieira (University of the Balearic Islands) Francesc Sastre (University of the Balearic Islands) Javier Lozano (University of the Balearic Islands) Abstract The purpose of this paper is to analyze why the government should intervene to reduce tourism seasonality. The one key focus of this essay is to provide an economic framework related with market failures and economic efficiency. In particular, we consider: externalities, coordination problems, public goods, incomplete information, incomplete markets and imperfect competition as the main failures markets linked to seasonality problem. The second focus is related to the risks of public intervention (government failures) to reduce seasonality. In particular we consider two kinds of problems: Failures in the government policies to mitigate seasonality and government interventions for other reasons to seasonality which finally increase it. Finally, we make some empirical research about the last questions.
Questioning the value of hotel chains with regards to international sales Giorgio Ribaudo*, Cristina Ribaudo *School of Economics, Management and Statistics of Rimini University of Bologna – Italy Via Angherà 22 – 47900 Rimini giorgio.ribaudo@unibo.it Abstract The globalization of tourist markets has recently increased the importance of foreign demand for most of European destinations. Besides being world top ranked tourism destinations, countries such as Spain and Italy are the most internationally exposed in Europe, since their foreign demand accounts for almost 50% of total hotel arrivals. As international markets get used to global brands in leisure experience-based services, hotel chains penetration grows at a stronger pace. Hotel chains have been long investigated by researchers from several perspectives and especially focusing on financial performance. No research has indeed verified the alleged ability of chains to attract foreign demand, while this information is strongly required by hotel investors and owners to evaluate affiliation opportunities. Indeed, in the current competitive environment, international visibility is a key lever to overcome the weak growth rate of domestic demand: affiliation to a brand could boost demand for a hotel, in such cases where it is proven that it contributes to higher international sales performance. The research focused on the evaluation of the alleged ability of chain affiliated hotels to perform better on international markets than independent (unbranded) hotels, by analysing arrivals from foreign markets and their provenance, together with the business models associated with the chain. Based on a 5 year proprietary census and on a survey of 148 observations (32% of chain hotels population in 21 destinations) for Italy, it was then demonstrated that chain hotels perform significantly better than independent hotels for attracting foreign demand. In particular, this appears true for all the investigated categories (3, 4 and 5 stars). When considering the FmPAR (a new metric for benchmarking hotels ability to sell abroad, first introduced by this research), which tells the absolute value of foreign demand per each room supplied, branded hotels reported an average of 125, compared to 77 of the destination average in the 3 star scale, and 122 against 83 in the 4 star scale, this evidence highlighting the different ability of branded hotels to be globally more visible than independent. It was generally noted that, in destinations where hotels rely heavily on the international demand, the difference between chain and independent hotels is weaker, although still evident. As opposite, there are several cases, such as Brescia, Parma, Turin, Naples, Syracuse, Palermo, where chain hotels clearly outperform independent hotels to a significant extent: it could be then
argued that they are preferred by international travellers due to certain (unknown here) features that are appreciated in second tier destinations. Unexpectedly, difference in results were not evident among brands and especially comparing domestic to international brands in terms of share of foreign demand (on total demand): domestics reported a 51.8% share of foreign market, against a 51.3% share of international brands. Among the several business models, franchising and management contract demonstrated to be attached to higher performance. Based on the case of Italy, managerial implications of this research for hotel investors, hotel owners and managers are straightforward: branding is, in general, associated with the opportunity of outperforming the destination on foreign demand attractiveness.
Tourism development in UNESCO Natural Heritage Sites. The case of Sicilian volcanic sites: Mount Etna and Aeolian Islands Giovanni Ruggieri, University of Palermo Department SEAS - Building 13 Viale delle Scienze 90128 - Palermo, Italy giovanni.ruggieri@unipa.it
Francisco J. Calderon Vazquez, University of Malaga (UMA) Department of Applied Economics Facultad de Ciencias Economicas Campus del Ejido S/N 29071 Malaga fjcalderon@uma.es
Abstract Local development is more often dependent from tourism sector, especially in fragile contexts like islands. These territories, in fact, represent a special cluster such as an independent state from the membership countries. Particularly, insular economies are almost totally based on tourism and connected activities. Because of this, they are the best cases to be analyzed in order to highlight positive and negative aspects of economic development based on tourism sector. In fact, tourism can bring development and growth but also negative effects on the local environment and residents. A sustainable development approach based on quantitative and qualitative indicators and a wide awareness about the need to preserve and then valorize local resources should be taken in account. In this sense, UNESCO brand plays a fundamental role in order to determine the responsibility of local managers in promoting a long term development approach. The inclusion in the World Heritage List, in fact, requires that specific parameters connected with the sustainability and the preservation are respected in order to reduce negative effects deriving from tourism. Despite of all this, there is a lack in studies concerning these aspects with specific attention to insular contexts. So the need to deep in knowing the phenomenon in order to better support decision makers emerges. This study is focused on the development coming from local private sector considered as the local business community. It is represented by the operators and, in general, the business activities directly linked to tourism sector. Particularly, the study carries out the supply and tourism demand analysis in two Sicilian active volcanoes (Etna and Stromboli) included in the Unesco World Heritage List. The general aim of this paper is to analyse the link between the tourism supply and the growth in terms of tourism demand in the case of Unesco sites. Through a multivariate regression analysis, the relation between the structure of tourism supply and the demand performances in terms of overnights and average expenditure is investigated. The main results highlight the existence of correlation between the variables considered. Other evidence shows that the actual structure of supply is still built on conventional sea tourism and not yet articulated to host and attract tourism demand connected with the Unesco active volcano area. In this way we can argue that UNESCO brand could guarantee a new approach for local tourism development if associated with a specific tourism supply structure.
Africa’s Outbound Tourism – An Almost Ideal Demand Perspective
To many observers, Africa is still viewed as the “dark continent”. However, it is a continent that has attracted increasing attention in the tourism industry, mainly as an unexplored and unspoilt destination. It is also a continent that is starting to signs of economic recovery and countries with high economic growth, and therefore it may potentially hold benefits for other destinations as a new source of tourists. Little is however known about the African tourists. To which destinations do Africans travel? Which are the key destinations for African tourists? And if Africa starts to show increased economic growth rates and welfare starts to increase, which continents stand to benefit the most? These are the answers that this paper addresses. To determine the tourism demand of African countries for other international destinations, as well as potential complementary and substitution effects between destinations, the Almost Ideal Demand System (AIDS) is the preferred methodology in the tourism demand literature. This paper uses secondary data from the UNWTO and the IFS (1995-2013) to estimate a dynamic and static AIDS model for African outbound travel. The results of the analysis show that Asia is the continent that currently attracts the largest number of African tourists. However, it is viewed as a luxury destination, with South America and Africa the only continents that consistently shows expenditure elasticities less than unity. The price sensitive destinations are North America, South America and Oceania, while African tourists are less price sensitive to changes in prices of other African countries, Europe and Asia. Furthermore, most destinations can be viewed as clear substitutes, with especially Asia and Europe that are winners from price increases in other destinations.
Counting the lion’s mane – a tourism perspective Abstract: One of Africa’s greatest wildlife icons and a major drawcard for tourists to the continent is the lion. South Africa is no exception, and as one of the most popular tourist destinations on the continent, many tourists brace its shores specifically for experiencing its wildlife. Wildlife can, in general, be viewed as a common pool resource, especially if government owns all wildlife. If this is the case, wildlife resources are especially prone to the tragedy of the commons, and this is evident from the large numbers of species that are being poached as well as the growing list of endangered species worldwide. In South Africa, however, wildlife is also privately owned, and private game farms primarily attract visitors for two reasons. Firstly, private game farms give visitors access to activities such as game viewing, different experiences with game and interpretation of species. Secondly, some private game farms also offer hunters the opportunity to hunt wildlife. The lion is a species that is also found on private game farms. In fact, most lions in South Africa are privately owned and the successful breeding programmes on these private facilities saved the species to a large extent. This paper aims to shed light on the value of the lion. Since lions can be bought and sold in South Africa, it has a market price. But is this market price a true reflection of the value of the species for tourists? How does the non-consumptive value of the lion compare to its consumptive value? There is reason to believe that some market failure may still be present, leading to a distortion of the market price. An undervaluation of the species often leads to exploitation and threatens the sustainability of these resources. The research uses data of auction prices, private sales, hunting prices as well as lion product prices in South Africa, that are sourced from private game farms as well as the Professional Hunters Association of South Africa, together with survey data from tourists, to evaluate the value of the lion. By comparing the various values of the lion with the market price, it would provide insight into the question of wildlife as a common pool resource and the role that private ownership can play in conservation efforts. Key words: consumptive value; non-consumptive value; wildlife tourism; scarce species; environmental goods; contingent valuation
Fatal attraction: How terrorism, crime and corruption hurt tourism MarĂa Santana-Gallego (University of the Balearic Islands, Spain)* Jaume RossellĂł-Nadal (University of the Balearic Islands, Spain) Johan Fourie (University of Stellenbosch. South Africa)
Abstract Safety and stability of a destination are acknowledged as fundamental to tourism development. For many economies, tourism can become an important source of foreign exchange and income, which are expected to have positive repercussions on the general development of the country. This article examines the effects of terrorism, crime and corruption on international tourist flows. Since data segmentation is available at different aggregation levels we apply two types of analysis: a tourism demand model for total tourist arrivals and a gravity model for tourist arrivals disaggregated by source country. The findings of the tourism demand model are that terrorism and crime have a negative effect on tourist arrivals, especially for leisure tourism, but that corruption affects only business tourism. The estimate of the gravity model evaluates differences in the instability measures between country pairs quantifying not only how terrorism, crime and corruption in the host country have a negative effect on inbound tourism but also how conditions in the origin country determine the magnitude of the effect of terrorism, crime and corruption on tourism flows to a particular destination. Keywords: terrorism, gravity model
*
crime,
corruption,
international
tourism,
Applied Economic Department. University of the Balearic Islands. Carretera de Valldemossa km 7.5 07122 (Palma de Mallorca). Balearic Islands, Spain. Email: maria.santana@uib.es
Integrating push-pull factors and destination attachment in a latent variable model for second-homeowners’ intention to move Igor Sarman, Università della Svizzera italiana* Adam Czarnecki, Polish Academy of Sciences
Abstract Second-homes represent a very peculiar reality in the tourism market and in many destinations such a segment has a long and established tradition, representing an important share in the accommodation sector. Second-homes related literature is rich and a recurrent topic concerns the observation of push and pull factors and their effect on individual propensity to spend leisure time in their dwelling. Similarly, the concept of destination attachment has been thoroughly studied and put in relation to second-homeowners’ affection toward their dwelling and the second-home destination, usually intended as a mixture of physical dimensions of places and social relationships. Although research on the secondary home phenomenon is varied, in general few studies took into account second-homeowners’ intention to permanently move to the place where they own their dwelling (typically representing the destination of leisure trips) and, in particular, elements as push-pull factors or the concept of destination attachment have not been considered as antecedents of the intention to move. The purpose of the research is to investigate the determinants of secondhomeowners’ intention to relocate. We apply an ordered logit model in which the dependent variable is the self-assessed probability to permanently move in the future. Sociodemographic and destination-related variables are considered as independent covariates and the classical framework of logit model is extended including a set of attitudinal and psychological latent variables adopted to include push-pull factors and destination attachment in the model. The rationale behind the inclusion of psychological factors is driven by the assumption that the decision to permanently relocate to the second-home destination is not only affected by demographic or environmental aspects but also by individual feelings towards the dwelling and the destination itself. Data used to pursue the research objectives refer to a structured survey submitted to individuals owning a second-home in the region of Lago Maggiore in Canton Ticino (Switzerland) and the subsample of Swiss respondents is considered. Preliminary results show that a significant relationship between push-pull factors and destination engagement can be used to describe individuals’ feelings and affection toward their dwelling and the destination. In turn, the psychological traits expressed by the secondhome owners represent significant antecedents of their intention to permanently relocate at destination. For tourism destinations interested in stimulating the second-home retirement phenomenon it may be helpful to understand the intentions of second-home owners in order to integrate policies that attract people; in doing so, city management policies cannot disregard the role of individual attachment for the destination and these policies should aim at involving the future citizens in the destination life and sociality.
1
Address: Via Maderno 24, CH-6904 Lugano (Switzerland). E-mail: igor.sarman@usi.ch.
The relationship between length of stay and transportation mode in the tourism sector: a discrete-continuous analysis of Swiss data. Despite scientific literature on the relationship between tourism and transport is wide (Alegre and Pou (2006), very few studies take into account the interdependence between time at destination and transportation mode, given the origin and the destination of the trip. The purpose of this paper is to investigate how the length of permanence at destination depends on a specific mode of transport and vice versa. We implement a discrete-continuous choice model (Hanemann (1984) and Dubin and McFadden (1984)), which is typically applied when the optimal discrete choice depends partially on the result of the continuous choice. For instance, the implementation of the discrete continuous choice models allows modelling jointly the discrete and the continuous consumer choices from the same utility maximisation problem. The present work is based on a dataset in which information about the behavior of Swiss tourists is collected. Information regards type of destination, type of origin, transport mode (Martin and Witt, 1988) and travel expenditure (Song and Li, 2010) and these elements are the focus of our work. This study represents the first case in which a discrete continuous choice model is applied to Swiss tourism data. Our preliminary results confirm, as we expected, that tourists from both periphery and rural area tend to move by private transportation to reach their holiday destination. On the other hand, the public transport seems to be preferable, if the destination is a holiday at seaside. Moreover, the model points out that when the number of travellers increases, the probability of choosing public transportation decreases. This result might be driven by the fact that the marginal cost per an extra person for the private transportation is null, whereas for the public transportation is positive. In tourism literature, duration of the journey and the transportation mode are generally chosen as the main explanatory variables of tourism demand. In this study, we change the perspective in the sense that we want to analyse the link among them and how it influences the tourism demand.
Elicitation of tourist accommodation demand for counterseasonal responses: evidence from the Slovenian Coast Tina Šegota, Faculty of Economics, University of Ljubljana1 Tanja Mihalič, Faculty of Economics, University of Ljubljana
Abstract Seasonality has long been recognised as a problem for tourism destinations, especially those over characterised by sun and beach tourism. More recent studies on seasonality in such destinations have proposed numerous counter-seasonal strategies; however, research gaps still exist. Firstly, although Slovenian tourism has a strong seasonal character, there is a lack of studies that would inform on the appropriate strategies for Slovenia, particularly its coastal destination. This is because the studies have been predominately focused on Italy (for example, Volo, 2010) and Spain (for example, Duro, 2016). Secondly, the studies have been mainly based on hotel occupancy rates, thus disregarding other accommodation facilities. This narrows the insights into wider accommodation demand across different tourism markets, which may result in either inefficient overall counter-seasonal responses or limited marketing opportunities. In order to address these gaps, we surveyed the seasonality of the Slovenian Coast in the period from 2010 to 2014 by using a decomposition of the Gini index. Moreover, we differentiated between three accommodation type categories, e.g., hotels, camps and other accommodation facilities, across the top five source markets. Findings showed that the seasonal concentration exhibited stability from 2010 to 2014, yet reached a G value of 0.37 which places the Slovenian Coast in the higher seasonality category among Mediterranean mainland coastal destinations. The findings also showed that domestic tourists are the least seasonal, followed by Italians and Austrians. This makes the proximity of the market of origin an important factor for reducing seasonality at the destination (Butler, 1998). Moreover, these markets exhibited a tendency to schedule visits during national holidays. Existing marketing strategies for customising school holiday tourism products in hotels along the Slovenian Coast are a prime example of a response to seasonality. However, there is a need to refresh them since domestic overnight stays are in decline. On the other side, this study demonstrated that the most seasonal markets are Germany and Russia. However, the identified differences between them suggest the need to develop and promote specific tourism products that would aid in attracting tourists outside the peak summer months. For example, German tourists’ overnight stays in different accommodation facilities are the most versatile among international tourists, with only 68.20 % accounted in hotels. Russian tourists, on the other hand, contributed to the seasonality the most. But, it is the length of stay (more than 5 1
Faculty of Economics, University of Ljubljana, Kardeljeva ploščad 17, 1000 Ljubljana, Slovenia; tina.segota@ef.uni-lj.si
days on average) and market so appealing providers.
the luxurious lifestyle that makes this for hoteliers and other accommodation
References Butler R (1998) Seasonality in tourism: Issues and implications. The Tourist Review 53(3): 18–24. Duro JA (2016) Seasonality of hotel demand in the main Spanish provinces: Measurements and decomposition exercises. Tourism Management 52: 52–63. Volo S (2010) Research note: Seasonality in Sicilian tourism demand - An exploratory study. Tourism Economics 16(4): 1073–1080.
The
Economic
Observatory
of
Meetings
Tourism
of
the
Argentine Republic Prof. Pablo Singerman, Universidad de Buenos Aires*
Abstract This research looks at the Economic Observatory of Meetings Tourism of the Argentine Republic, as an innovative and useful instrument of measurement, monitoring and analysis of the state and performance of the aforementioned segment of tourism. The Observatory is the result of a public, private and academic partnership, where the Argentine Association of Professional Organizers and Suppliers for Exhibitions, Congresses and Events (AOCA) represents the private sector, the Ministry of Tourism of Argentina represents the public sector, and the University of Buenos Aires represents academia. A national network of focal points, composed by local and/or provincial tourism authorities and MICE bureaus, was developed to support the Observatory´s functioning. This action reported mutual benefits, as subnational destinations became able to account the economic impact of the meetings tourism segment; and the Observatory became able to count on a trustworthy primary source of information, that represents the country on various levels. Since its creation in 2010, the Observatory grew in all its dimensions, accounting an increment of 317% in identified and registered events, a 180% growth in surveys conducted to attendants of the events and a rise of 182% of focal points part of the national network. As an outcome the data compiled and analyzed granted public officials, policy makers and the trade for their decision-making to be smarter and supported on actual facts.
*
Niceto Vega 4831 “A”, Buenos Aires, Argentina – psingerman@gmail.com
Agglomera on Effects in the Norwegian Tourism Industry
Oddne Skrede, Western Norway University of Applied Sciences Sigbjørn Tveterås, University of Stavanger
Agglomera on and its effect on profitability in tourism is star ng to receive a en on in recent years (Marco-Lajara et al., 2016; Yang, 2012). In many industries such as manufacturing and biotechnology, agglomera on is considered important to profitable industrial development. There are also reasons to believe that agglomera on effects should be present in the tourism industry, due to factors such as knowledge and produc vity spillovers and heightened demand for tourism products. A growing number of studies explore the effects from proximate loca on of similar or otherwise related businesses. The Norwegian tourism sector relies on des na ons with geographically determined tourism a rac ons. The /ord landscape a racts a large number of tourists, but many tourism businesses, par cularly the tradi onal /ord hotels, s ll struggle to gain profitability. On the other hand, coloca on of hotels and evolving ac vity-based tourism appears to increase demand. Increased concentra on in the tourism industry of Norwegian towns and ci es could further a ract specialized labor, thereby increasing knowledge locally and increases spillover to businesses nearby. Although tourism studies on agglomera on benefits and costs has started to emerge, it is s ll an under-inves gated topic. Tourism industry is characterized by heterogeneous firms, which we can hypothesize benefit to a varying degree of agglomera on effects. Hotels, for example, enjoy a varying degree of supply of more produc ve/skilled labour depending on the presence of other hotel companies. This difference is not only evident between rural and larger urban areas, but also appears to be present between more thinly populated areas that differ in tourism intensity. The study of agglomera on effects can provide useful insights for understanding what makes a successful des na on. The panel consists of annual profits per employee from hotels and restaurants in 42 Norwegian municipali es in the period from 2004 to 2013. In addi on we have a rich data set on numbers and types of tourism firms opera ng in these municipali es. Spillover effects is to be modelled using a panel data model that accounts for adjacent municipali es and within the municipali es themselves. The number of different firms in a region, as well as measures such as popula on density and infrastructure are implemented variables for tourism agglomera on and urbaniza on. Marco-Lajara, B., Claver-Cortés, E., Úbeda-García, M., & Zaragoza-Sáez, P. D. C. (2016). Hotel performance and agglomera on of tourist districts. Regional Studies, 50(6), 1016-1035. Yang, Y. (2012). Agglomera on density and tourism development in China: An empirical research based on dynamic panel data model. Tourism Management, 33(6), 1347-1359.
Variations in seasonal asymmetric tourism behavior across the business cycles Egon Smeral Modul University Vienna This study analyzes and discusses the existence of asymmetric tourism demand behavior across business cycles and seasons. In order to demonstrate asymmetric tourism demand behavior across business cycles and seasons we analyzed the outbound expenditures of different source markets by single quarters, each understood as its own time series. We differentiate between situations where the income elasticities are greater in periods where the economy is in an unfavorable stage compared to an upturn or prosperity phase. In such situations, consumers behave as loss averters. In line with the loss aversion concept, most of the negative and positive adjustments in expenditures for tourism imports occur in unfavorable stages of the economy, while adjustment activities are lower during periods of fast growth. However, in cases of liquidity shortages and/or reluctant lending behavior on the part of banks, tourists can only rely partly on their loss aversion attitudes or give these up. On the other hand, relatively higher income elasticities in fast growth periods in comparison with economic downturn phases could appear in cases of liquidity constraints and/or tight money markets. In such situations consumers (possibly loss averting) only spend their current income when exposed to sluggish economic growth, even when individuals expect an improvement in their income situation during the expansion period. As a result, income elasticities remain low as consumers postpone their expenditures into the future. Once an income improvement occurs at the beginning of the expansion period and liquidity constraints are reduced or eliminated, tourism demand can rise, possibly also with the help of a reallocation from savings, resulting in an increase of income elasticity. Another reason for postponing consumption in the expansion period is precautionary saving because of uncertainties due to the unfavorable state of the economy. The estimation results demonstrate the existence of asymmetric tourism behavior across the business cycles. However, the patterns showed differences by source markets and seasons due to the different tourist segments and the variations in the travel types. In contrast to the other source markets, the EU-15 tourists behaved as loss averters in the summer season, consuming their main holidays, in all other season they behaved symmetrically. For the US citizen liquidity constraints and precautionary saving were important factors for asymmetric behavior in the winter, spring, and summer season; loss averting was their dominant behavior only in the fall season. The asymmetric behavior of Canadians is influenced in the summer and fall season by the liquidity conditions and the level of their preferred precautionary savings quota, in the winter and spring season they behaved symmetrically across the business cycles. Japanese tourists showed a partly similar behavior. Keywords: asymmetric tourism behavior by seasons, money market conditions, precautionary saving, psychological factors.
Exploring unique challenges of small and medium tourism enterprises Ekaterina Sorokina1, Robertico Croes, and Alan Fyall Rosen College of Hospitality Management, University of Central Florida
Abstract This research study is initiated with the primary purpose to explore unique operating challenges of small and medium tourism enterprises in the U.S. The operating challenges of this sector may prevent individual business owners from aligning their objectives with destination vision, and consequently undermine the overall competitiveness of destinations. The competitiveness of destinations and the tourism suppliers are tightly bounded together, and the strengths and weaknesses of one could become strengths and weaknesses of the other (Buhalis, 2000; Dehurst, Dehurst, and Livesey, 2007). However, the research literature that explores operational challenges of small and medium tourism enterprises is limited and sparse. Furthermore, the available literature is primarily focused on the operation of these businesses in the UK market. Therefore, this study may offer important implications not only for individual businesses that operate in the U.S. but also for the destinations that heavily depend on the performance of these tourism suppliers. Tourist destinations comprise of various tourism products and services, and while the experiences of tourists vary from one encounter to another, they tend to experience destinations in their entirety. Thus, each of these individual encounters may have the power to influence and shape tourists’ perceptions of their overall destination experiences and to create a long-term impact on the destinations’ competitiveness. Considering that the majority of the suppliers that provide tourism products and services both in the international market and in the U.S. are medium or small firms (Fyall, Hartwell, and Hemingway, 2013; Morgan, Elbe, and Curiel, 2009; Morrison, Carlsen, and Weber, 2010; Thomas, Shaw, and Page, 2011), the overall tourist experience can be greatly affected by the encounters with these businesses. The nature of the tourism industry may be critically distinct from other industries where small and medium enterprises operate (Ateljevic, 2007; Smith, 2006). Thereby, the tourism operating environment could create unique challenges, the resolution of which may have direct implications for the competitiveness of the individual businesses and the destination as a whole. For this reason, the study will develop a survey tool that will examine various operating challenges of small and medium tourism enterprises in the U.S. market. This survey tool will additionally assist in understanding the core challenges that small and medium 1
Department of Tourism, Events & Attractions, University of Central Florida, Orlando, FL, United States of America; sorokina@knights.ucf.edu
enterprises face and in the development of strategies that could remedy those challenges. The research in this area, therefore, has a potential to offer a valuable contribution to effective policymaking and strategic planning if the needs of small and medium tourism enterprises are recognized and accounted for (Page et al, 1999; Morrison et al, 2010). The resultant initiatives could consequently stimulate the development of local communities, improve the quality of life for local populations, and enhance the overall competitiveness of the destinations (Wanhill, 2000). Particularly, this research may provide the long-needed information for destination policymakers on how to successfully engage individual tourism suppliers in the pursuit of the common goal to make destinations competitive.
Gastronomic tourism and street food as an innovative product of Budapest Orsolya SzakĂĄly, PhD Student, Corvinus University of Budapest, Institute of Marketing and Media, Tourism Department orsolyaszakaly@uni-corvinus.hu
Abstract The main aim of the paper is to examine the role of gastronomy as an innovative product in the life of Budapest. The culinary products have been always changing regarding to the contribution of the gastronomic revolution of the past decade. The EU Commission (2016) also contributed by treating the gastronomic tourism as an innovative product, and the Hungarian Tourism Agency by promoting the Hungarian gastronomy and agricultural products in its marketing strategy in the period between 2015-2017. The main objective of the paper is to answer the question whether the local flavors get emphasis due to the gastronomic revolution. The culture of food and beverage has come into the spotlight during the gastronomic tourism due to nations and the gastronomic features of destinations. The Global Report on Food Tourism (2012) introduced the relationship between food and tourism and the importance of gastronomy in a destination’s life. Millions of tourists return to a destination to taste the traditional flavors and discover the destination. Food is one of the most important needs in the human life and also one of the most important component in the tourism. The most prominent differences among the travellers in the side of gastronomy is the willingness to try the local flavors of a destination. Nevertheless, gastronomy has the power to renew itself, this is the reason of the gastronomic revolution. The innovative supply of the city will be introduced, as well as the results of a quantitative survey asking 307 international travellers in an exploratory survey without the objective of reaching representativeness. The main questions were about their attitudes regarding lifestyle, activities during their travels, and the role of gastronomy in that. According to the results, however Budapest is under a gastronomic revolution, the local flavors are not so important at tasting the city, and street food as well as international food is far more interesting for the respondents. Keywords: gastronomy, gastronomic tourism, innovation, innovative product, street food
Smart destinations for smart Generation? – The requirements of Generation Y in the area of innovative communication
Dr. Ivett Sziva Associate professor Corvinus University of Budapest Tourism Department ivett.sziva@uni-corvinus.hu
Abstract
Social media and mobile-marketing all among the most challenging trends the tourism destinations facing with, particularly in the area of reaching the so called smart or Internet Generation, the tourists from the Generation Y. However the most innovative destinations’ objective is to implement SoCoMo (Social-context-based – mobile marketing), the main question is whether the members of the Generation Y need these kind of approaches. Generation Y is considered as the most technology savvy Generation, whose members are conscious consumers with well-defined, high needs regarding quality, and price/value ratio, and as sharing their most important life-events on several social media channels with their peers, Web.2.0. is crucial for them as a channel for communication and co-creation. The main dilemma is whether this opened Generation with an advanced technology-using habits would need “smart” solutions and “smart destinations” based on social-mobile marketing, and highly personalized services? The main objective of the paper is to introduce the results of a quantitative research with more than 430 answers from 45 countries from the members of Generation Y regarding their needs, limits in the area of highly innovative communication and product-development questions.
Keywords: smart destination, Generation Y, innovative communication
Tourism and economic growth: case of a resource-stricken tourist destination Pui Sun Tam, University of Macau
Abstract This paper aims to study tourism-led growth hypothesis for the case of Macao. It also investigates the differential effects of various tourist sources on economic growth. Results lend support to the tourism-led growth hypothesis, and that tourist sources have heterogeneous contributive effects on economic growth. The implication is that tourism development spurs economic growth for resource-deficient economy, but to reap the maximum economic gain, policy-makers are urged to adopt marketing strategies geared towards attracting an appropriate tourist-mix.
Factors affecting tourists' preferences for urban or nature destinations in international and domestic tourism Sharon Teitler-Regev, Department of Economic and Management, Yezreel Valley College, Israel* Shlomit Hon-Snir, Department of Economic and Management, Yezreel Valley College, Israel * Yezreel Valley College, Yezreel Valley, 19300, Israel , sharont@yvc.ac.il, Abstract UNWTO describes urban tourism as trips to cities or places with high population density. Because these trips are usually short (one to three days), urban tourism is closely linked to the short break market. Several researchers have tried to develop a framework for understanding urban tourism, which is highly important to cities' economies but also requires significant urban infrastructures. The current research focuses specifically on comparing the factors affecting tourists' preferences for urban destinations or for nature trips in international and domestic tourism. The dependent variable is preferences for nature vs. urban destination, measured on a Likert scale. The independent variables include socio-demographic variables, type of residential setting—city or other type of setting, such as village or communal community (kibbutz)—and type of tourist. The data were collected using questionnaires distributed between March and June 2016 among students at different academic institutions in Israel. Of the entire sample of 199 respondents, 164 respondents (84.6%) reported traveling abroad, with an average of 1.3 trips per year (among those that traveled abroad). 179 respondents (96.2 percent) reported going on vacation in Israel, with an average of 4.2 vacations per year (vacation includes one-day trips). The results indicate that when traveling abroad: Urban tourism is more preferred by those that live in cities. In addition, Nature destinations are more preferred by women. Furthermore the intention to travel to nature destinations increased among those that look for novelty (have higher levels of DOD) and those that want to observe different cultures (have higher levels of SCD). When traveling domestically the result indicates that: Urban tourism is more preferred by those that live in cities. Additionally, the intention to travel to nature destinations increased when the number of trips in Israel (per year) increased. Moreover, the intention to travel to nature destinations increased among those that look for novelty and those that make specific plans in advance. The results point to some similarities between domestic and international tourism. In both cases, those that live in cities prefer urban tourism and those that have higher levels of DOD (search for novelty) prefer nature destinations. The results can help policymakers adapt their marketing efforts to the right tourist. For example, if they want to market urban tourism to international tourists they should address their marketing efforts to men who live in cities and to people not seeking new adventures. If they want to market urban tourism domestically, they need to address those living in cities that take fewer trips to the country. The results demonstrate that preferences for urban or for nature tourism may change depending on the circumstances. Further research should consider the effects of factors such as length of stay, potential travel companions, and other characteristics of the destination (modern or developed country) on destination preferences.
Willingness to pay for airline security Sharon Teitler-Regev, Department of Economic and Management, Yezreel Valley College, Israel* Shahrabani, Shosh, Department of Economic and Management, Yezreel Valley College, Israel * Yezreel Valley College, Yezreel Valley, 19300, Israel , sharont@yvc.ac.il,
Abstract Various factors affect the willingness to pay for airline tickets, among them level of service and the security measures used by the airline, yet, previous study did not examine the factors affecting the WTP for airlines tickets during an ongoing terror attacks. Recent international media reports of terrorist attacks in airports and on airplanes have made people more aware of the risk terrorism poses to flying and the need for security measures in the airline industry. The current research was conducted during the 2014 Israel–Gaza conflict, also known as Operation Protective Edge, and examines the effect of negative emotions evoked by the war on the willingness to pay higher prices for tickets on airlines employing a high level of security. During the war, rockets were fired on Israeli cities, and many international airlines discontinued their flights to Israel. The Israeli national airline El Al has anti-missile systems, and its security checks are more stringent than those of other airlines. The main Hypothesis was that individuals with higher levels fear will have higher level of intention to pay for secure airlines. 402 Israelis answered an Internet survey that included questions regarding willingness to pay for airlines ticket during routine times. The results show that individuals who indicated higher levels of fear during the war were willing to pay more for airline tickets, not only during wartime but also during routine times. In addition, people with a higher level of education and those with stronger ties to religion were willing to pay more for airline tickets. This research supports earlier research that found that negative emotions are correlated with decision-making.
The implications of the study are important for understanding
people’s feelings, risk perceptions and attitudes toward airline services in situations of danger. Further research should test whether this willingness to pay more decreases when the war is over.
The
effect
pricing:
of
different
consumer
choice
characteristics analysis,
on
campsite
seasonality
and
location effects in a mature destination
Anna Teixidor, Universitat de Girona Albert Saló, Universitat Autònoma de Barcelona Anna Garriga, Universitat de Girona
Abstract
This paper analyses what are the most significant variables on the campsite market in Catalonia (Spain) that determine the final price of them. We distinguish a tent plus a car as a pack and the pricing policy for it. We focus on the seasonal patterns and specific location (in terms of municipalities or tourist area) that shed some light on the existence of possible different tourist profiles in this market. Also other attributes that tourists consider are taken into account (services like campsite size, supermarket, sports, pool, etc.).
The analysis relies on a data base which includes prices and characteristics (drawn from brochures) for all campsites in the Costa Brava (mature destination), Costa Daurada and Costa Maresme in Spain. We use hedonic pricing methods to determine the effect of every characteristic of campsites on its final pricing.
The value of destination in terms of municipalities or tourist areas has an influence on final pricing too. Using hedonic pricing we can obtain a quantitative value of the influence of location on price. Moreover, we want to analyse the market power of several big campsites that offers an important percentage of pitches and how the rest of small campsites could react to this influence on final pricing.
There are managerial implications for the sector as there are no specific studies in this market despite its importance as a tourist attraction in Catalonia (Spain). New strategies on pricing policy are considered here using the results of location influence and seasonality patterns. In terms of public policy this information is useful in terms of knowing the attributes that are valued around the campsites but also the comparison with other
tourist accommodations (hotels, second homes and rural houses) in order to establish an overall tourist strategy.
Key words: campsite, pricing policy, location, seasonality, hedonic technique
Game theory insights in the implementation and the management of inclusive tourism projects Frédéric THOMAS Associate professor – IREST, Paris 1 Panthéon-Sorbonne University Potjana SUANSRI Founder and Past Director of Thailand Community Based Tourism Institute Peter RICHARDS Associate Staff at Leeds Beckett University, School of Events, Tourism, Hospitality and Languages.
Abstract After reviewing some of the circumstances behind the growing interest for the game theory as a tool for analysing and predicting how human behave in strategic situations, this paper tests game mechanisms in a remote and post-conflict environment in order to understand whether gamification works or not when it comes to facilitate the implementation of inclusive tourism projects in such areas. Actually, game theory is increasingly applied in project management and issues concerning the rationality of individuals are often raised in the context of rural communities. However it finally happens that the effects are greatly dependent both on the context in which the gamification is implemented and on the selected population to play the game. This research demonstrates that the reasons for choices were highly contextualized by local details which are not caught in the binary decisions, nor the decision-making logic underpinning the game. Additionally to the findings of this research which notably conclude that the sensitivity of the community context might be an essential factor for engaging gamification or not, a precise review of the difficulties encountered in the implementation of the CBT segment have policy implications for inclusive tourism project development especially in post-conflict areas.
Residents’ quality of life and support for tourism development: the role of moderating factors Oksana Tokarchuk, Competence Centre in Tourism Management and Tourism Economics (TOMTE), Faculty of Economics and Management, Free University of Bolzano Oswin Maurer, Competence Centre in Tourism Management and Tourism Economics (TOMTE), Faculty of Economics and Management, Free University of Bolzano Abstract The present study aims to investigate the impact of tourism on quality of life of residents, and how this relationship influences their support for further tourism development, for residents in South Tyrol, Italy. Moreover, we investigate moderating effects of this relationship. The study is based on empirical evaluation of structural equation model. This model considers four main impacts of tourism on life of residents, economic, social, cultural and environmental, and relates them to the overall quality of life (Model 1). We further investigate if this contribution translates into support for further tourism development (Model 2). Previous literature suggests that economic dependency on tourism and length of residence are the most influential determinants of the perception of tourism impact on locals’ life (Harrill, 2004). In our model we consider employment in tourism and length of residence as moderators of the relationship between tourism impact, residents’ quality of life and residents’support for further tourism development. Empirical test of the model is based on a dataset of 635 residents in South Tyrol. Empirical test of the model 1 demonstrates that perceived impacts of tourism are positively related with residents’ quality of life. The strongest effect comes from social impacts followed by cultural and economic impacts. Environmental impact has comparatively low effect. Inclusion of support for tourism in the model, model 2, confirms that perceived impacts of tourism contribute to quality of life of residents that, in turn, creates support for further tourism development. Moderators have important influence on the relationship under analysis. We find that relative importance of contribution of various tourism impacts to quality of life of residents differs based on the considered group of residents. While positive and significant path from quality of life improvement due to tourism is observed this relationship is considerable only for the group of residents working in tourism. Policy-makers aiming at establishing support for tourism development in local communities should carefully address this fact.
Religious Proximity as a Factor for Outbound Tourist Choice Destination Annie TUBADJI University of Cambridge, Cambridge, UK University of Bologna, Rimini, Italy annie.tubadji@hotmail.com
Peter NIJKAMP Tinbergen Institute, Amsterdam, The Netherlands Adam Mickiewicz University, Poznan, Poland p.nijkamp@vu.nl
Paolo FIGINI University of Bologna, Rimini, Italy paolo.figini@unibo.it
Andrea SAAYMAN North West University, South Africa andrea.saayman@nwu.ac.za
Abstract
This paper engages with religion, as a classical measure of culture, and its impact on tourist choice destination. The first objective of the paper is to test whether religious distance outperforms alternative types of cultural and geographical proximity in determining the short term movement of people in a gravity model. At a next step, our second objective is to cross-check how this relationship between tourist flows and religion relates to flows in migration and trade. On one side, we want to examine how religious distance affects economic growth in the Balassa-Samuelson setting of difference in prices across countries. On the other side, we want to see how religious gravity predicts the longer-term movement of people towards countries. To perform our research, we collected a unique dataset for the period 1995 – 2015 for all countries in the world, available from the United Nations World Tourist Organization and World Development Indicators from the World Bank. To quantify religious distance, we employ a specialized index, elaborated by Dow et al. (2016). We use panel data methods and Granger causality test to triangulate the analysis on the direction of the examined effects. In this process, we check if tourism is a channel for cultural (religious) distance effect on migration and trade flows. The implications from our research come to highlight that the warning posed by both Balassa and Samuelson that tourism is a major source of price differences across countries holds today in the framework of increased movement of people. And in both processes, religious distance might be a major and classical but so far neglected factor in understanding tourist destination choice with importance for other economic effects.
Keywords: cultural gravity, religious distance, migration, tourism, Balassa-Samuelson effect References: Douglas Dow, Ilya R P Cuypers and Gokhan Ertug. (2016) The effects of within-country linguistic and religious diversity on foreign acquisitions. Journal of International Business Studies 47:3, 319-346.
Balassa-Samuelsson Effect, Culture and Pricing. The Case of Lonely Planet Tourist Guidebooks Annie Tubadji (University of Bologna) Maurizio Mussoni (University of Bologna)∗ Lorenzo Zirulia (University of Bologna)
Abstract This paper explores the differences in pricing of a tourismrelated good (tourist guidebooks) across different markets. Our aim is to identify if there is a cultural bias behind the BalassaSamuelson effect in pricing tourist guidebooks. We use a unique dataset of prices of Lonely Planet Tourist Guides, which are sold in 10 different Amazon.com local markets, and we analyse the differences in their prices to identify if and why a third type price-discrimination (i.e., selling identical products at different prices to different categories of customers) exists. In particular, we investigate if price discrimination may be explained by the cultural proximity between the local market and the tourism destination described in the tourist guidebook, as measured by the linguistic similarity between the two countries. A Logit model for the existence of difference in prices across localities confirms the existence of a Balassa-Samuelson effect across the different Amazon.com local markets, with a statistically significant effect for cultural proximity. Keywords: Balassa-Samuelson effect, third discrimination, cultural proximity, tourism. JEL codes: Z10; D81; L26; R11.
∗
type
price
Department of Economics, University of Bologna, Rimini Campus, Via Angherà 22, 47921 Rimini, Italy, email maurizio.mussoni@unibo.it
Linguistic Proximity in Tourist Destination Choice and the BalassaSamuelson Effect: A Regional Economics Perspective Annie TUBADJI University of Bologna, Rimini, Italy atubadji@hotmail.com
Peter NIJKAMP Tinbergen Institute, Amsterdam, The Netherlands Adam Mickiewicz University, Poznan, Poland p.nijkamp1@gmail.com
Abstract
This paper focuses on a neglected part of the well-known Balassa-Samuelson (B-S) effect in international trade. It argues that sectoral and wage mechanisms for balancing the purchasing power parity and exchange rates between countries need to account also for the important role of international tourism. Our study thus addresses the specific role of tourism in equilibrating the purchasing power parities (PPP) across areas, It aims to highlight in particular the cultural bias in destination choice by foreign tourists and its importance as a barrier for eradicating economic inequality between countries. We regard international tourism here as a mixed type of tradable service which leads to – short-time, but potentially massive – cross-border movements of people that can impact income redistribution among countries and that are positively biased towards culturally closer localities. The recognition of the role of cultural proximity in the tourist choice destination can help fine-tune empirical models of international goods or services to reality. To test this model, a unique big dataset for the EU28 and all OECD countries (4031 observations on the shares of outbound tourists per country) is composed for the year 2014. We use here extensive data from the UN World Tourism Organization, Centre d’Etudes Prospectives et d’Informations Internationales (CEPII, Paris) (especially on linguistic proximity), and the six well-known Hofstede indices of cultural dimension: individualism, power-distance relationship, masculinity, uncertainty, indulgence and long-term orientation. To fully specify our tourist destination model we include also climate-related explanatory variables, reflecting sun, rain and wind differences between sending and recipient countries. We apply an OLS estimation, with robust standard errors and corrections for clustering effects, and a hierarchical (multi-level) model, which both lead to consistent empirical estimates. Our results clearly demonstrate that tourism is a significant counter-balancing factor for the B-S effect that seems to be present and related to non-trade sectors and wages across the countries involved. Moreover, we find that linguistic proximity is statistically and economically the most powerful quantitative proxy for cultural factors, which determine the outbound tourists’ destination choice. Keywords: Balassa-Samuelson Effect, tradable services, tourism, cultural proximity, linguistic distance, Hofstede’s cultural dimensions JEL classification: Z10, O11, J60, E31 1
Labour market insertion of young people in the hospitality and tourism sector1 Maria Tugores2
Abstract
According to the UNWTO (Word Tourism Organization) Spain is the third country in the world to receive more tourists in a year (more than 60 million tourists in 2015). The ratio of employed persons in tourism industries relative to the total employment in Spain is higher than the 10% and in some especially touristic regions, like in the case of the Balearics, where this percentage is over 25% and the number of tourists goes far beyond twelve millions. At the same time, Spain continues leading the list of nations with a high unemployment rate, despite the slight decline in unemployment registered in recent months. According to the latest data released by the OECD, Spain has tripled (48.88%) the average rate registered for the 34 developed countries (13.7%) and doubles the Spanish general unemployment rate (22.2%). In this context, the objective of this paper is to analyze for an specially tourist region like the Balearics, the degree of labor insertion as well as the working conditions of young people in the tourism and hospitality sector, and compare their situation with respect to other sectors and occupations. In addition, it aims to analyze the relationship between the training received and the occupation performed, as a first step to analyze the training needs in the sector. Two databases or sources of Information are available for this purpose. On the one hand, through a specific quantitative sample of 580 young people in the Balearics. It was conducted by means of a home interview, through a questionnaire, which covered the following dimensions: socio-demographic characteristics, current situation, education, employment, and physical and psychological well-being. It was created and validated by the research team and before being used the pilot test was conducted. This sample is representative sample from the region, taking into account gender and type of home neighborhood. Sample error for the whole sample was 3.98% estimated to be a 1
This article is part of the project “Trajectories from secondary education into employment: a biographical perspective� (EDU2009-13312), funded under the National Plan R+D+I (Ministry of Economy and Competitiveness, Government of Spain). 2 Associate Professor, Departament d’Economia Aplicada, Universitat de les Illes Balears, Crta. Valldemossa km.7,5, 07122, Palma (Spain), Email: mtugores@uib.es, Phone:+34.971.173050, Fax:+34.971172389. Corresponding author.
confidence level of 95%, under the least favorable condition of p = q = 0.5. The data collection period was from April 2011 to June 2012 for the quantitative sample. And, on the other hand, through a questionnaire to young recent graduates of their hospitality studies. Through this work it will be possible to answer important questions such as the level of labor insertion in the tourism and hospitality sectors, their working conditions compared to other occupations, the degree of Adjustment between studies and employment, as well as the search time of the first job and even the degree of satisfaction reported. All this is especially important in a highly specialized economy in tourism and hospitality and in a country where access to a first job by young people is especially difficult.
Key words: education, employment, labour conditions, tourism and hospitality
What impact is Experiential Tourism having on Competitiveness? Natalia Tur1, Escuela Universitaria de Turismo del Consell de Ibiza Javier Rey-Maquieira2, Department of Applied Economics, University of Balearic Islands Vicente Ramos3, Department of Applied Economics, University of Balearic Islands
Abstract
This paper adopts a demand approach to present a conceptual model that links experiential tourism and competitiveness. The former is measured by the weights of three defining elements, Memorability, uniqueness and extraordinarity. The latter is assumed to be related with guest’s perceived value, final satisfaction and behavioral intentions as proxies for tourism competitiveness. The conceptual framework suggests that new economic value arises in the cocreation process of experiential tourism, resulting in a more differentiated economic offering, in terms of memorability, uniqueness, and extraordinariness. Experiential tourism could enhance the guest’s perceived value affecting final satisfaction and, in turn, behavioral intentions. The results also discuss that the effects of experiential in competitiveness seem subject to the distribution of the value created between guests and suppliers. On one hand, experiential tourism increases the guest’s utility, and this new economic value is reflected in the consumer surplus. Higher satisfaction levels and more positive behavioral intentions are obtained, providing the supplier competitive advantage. On the other hand, the producer is able to capture part of this new value through price-premiums, enhancing the producer surplus, increasing profitability and, thus, competitiveness.
1
nturmari@gmail.com javier.rey@uib.es 3 vicente.ramos@uib.es 2
Seasonality determinants for the main markets in Spain Judith TurriĂłn-Prats1* and Juan Antonio Duro GRIT & CREIP, Department of Economics, Universitat Rovira i Virgili, Spain
Abstract Tourist seasonality consists in the disequilibrium in tourist arrivals over the course of the year. This imbalance has become one of the main problems, considering that it constitutes a major threat to sustainable growth, destination image, and tourist loyalty, especially for the massive and well-established destinations. In this paper, our purpose is to identify and measure the impact of seasonality’s determinants in Spain. The study is focused in this country because it is one of the most important touristic destinations in the world, where the tourism sector makes a significant contribution to the economy, around the 11 per cent of GDP in 2014. Furthermore, the monthly concentration of demand is one of the greatest among those European Union countries with high tourism demand and is even increasing in the recent years. To achieve our aim, a model is elaborated applying a panel data set consisting in monthly concentration of the main markets (British, German, and French) in each of the Spanish provinces for the period 2006-2015. Dynamic models, in particular, some of the different alternatives of the Generalized Method of Moments (Difference and Xtabond2), are used to estimate our model, which combines natural and non-natural explicative variables. Although extensive academic research has explored theoretically the determinants of monthly concentration for the tourism demand, much less research has investigated empirically its relations. Thus, the present paper proposes new methodologies for measuring and analysing seasonality that may constitute a toolbox for other analysis and cases. Firstly, for measuring tourism seasonality, we propound the coefficient of variation, instrument scarcely used despite its advantages, such as the uniform treatment it gives to the months. Secondly, for analysing the determinants of this imbalance, we have applied Generalised Method of Moments (GMM) estimators, such as the estimator of Arellano & Bond (1991) known as the Difference GMM and of Roodman (2006) named Xtabond2. Researchers have used Arellano and Bond estimator but in that case implemented for explaining tourism demand. Nevertheless, the other estimator, as far as we know, it has not been used in this type of analysis despite being consistent and asymptotically efficient. We believe that the methodologies employed and the countryspecific results are broadly applicable. In addition, their use 1 Av. Universitat, 1; 43204 – Reus. E-mail address: judith.turrion@urv.cat
gives a better understanding of the impact of natural (destination climate and home climate) and non-natural (economic factors) determinants of seasonality, which can improve the demand forecast made by the sector agents allowing them to make a more efficient use of their resources.
Regional Growth Divergence in Nordic Winter Tourism Demand Sigbjorn Tveteras1 and Martin Falk2, 1 Department of Industrial Economics, Risk and Planning, University of Stavanger 2 Austrian Institute of Economic Research (WIFO) Abstract Winter tourism demand in the Nordic countries is highly uneven across regions. While overnight stays in the Northernmost part of Finland, Norway and Sweden increased between 3 and 6 per cent between the winter season 2001/2002 to 2015/2016 per year on average, there is stagnation and even decline in some central mountain regions located in the Southern part of these Nordics. Little is known why the tourism growth is uneven across regions in the Nordic mountain destinations. Possible factors are new tourism interests in the exoticness of the Northern ‘frontier’, which, for instance, as manifested by the landscapes particular to the region, the number of daylight hours, the cold climate and, not least, the Northern lights. However, different growth pattern can also be influenced by global warming and deteriorating snow conditions in the South, and increased accessibility in the North through new airports with better connections. The aim of the paper is to provide first evidence on the determinants regional tourism demand in the Nordic mountain areas, attempting to disentangle effects of these factors. The study analyses annual data for about 25 regions that cover rural and mountain areas for the winter seasons 2001/2002 to 2015/2016 (of which 5 are in Sweden, 3 in Finland the remaining are in Norway). The tourism demand model is specified as a function of relative prices, weighted GDP per capita of the visitor countries, presence of airports, and winter sport related amenities and attractions (length of ski runs, cross-country tracks), weather conditions (snow depth) and control variables (population density). The empirical model is based on spatial lag model and spatial Durbin model estimated in first differences. This allows us to model the interdependencies of tourism flows across regions (Yang and Wong, 2012). Given the growth in tourism inflows in the Arctic Circle area we expect that tourism inflows depend on the level of those in the surrounding regions. Thus, we use a spatial lag model in which the spatial dependence is accounted for by including a spatially weighted lag term (Anselin and Bera, 1998). In addition, we use spatially lagged explanatory variables. This is the so-called spatial Durbin model. The parameters of both spatial models can be estimated by maximum likelihood. The spatial weight matrix is based on the contiguity. The results of the SDM model estimated in first differences show that the spatial parameter is highly significant and equal to 0.5 in our preferred specification. This indicates that districts with a similar growth rate of overnight stays are clustered together. Furthermore, growth of overnight stays at the regional level depends significantly positively on presence of airports and presence of a world heritage site. Regions in the Northern regions are characterised by a high income elasticity and a low price elasticity. Furthermore, the climate zone also matters with a much lower growth of overnight stays in the Southern regions. Finally, regions with a strong specialisation in downhill skiing have a lower than average growth rate of overnight stays.
Staff Workload Mismatch and Service Productivity Sigbjørn Landazuri Tveteraas1, Kristin Helen Roll2, Ragnar Tveterås3 and Helge Jørgensen4 1 Department of Industrial Economics, University of Stavanger; 2 University College of Southeast Norway; 3 The Business School at the University of Stavanger; 4 Norwegian School of Hotel Management, University of Stavanger
Abstract Understaffing in hotels may lead to deteriorating service quality while overstaffing may lead to labor inefficiencies. Fluctuation between the two states may affect staff labour moral and their performance. This is a challenge for hotel managers that have to try to optimize staffing in the face of volatile daily demand. The main tool to reduce the mismatch between staffing and overall workload is good planning. In this study we use daily data from 100 Norwegian hotels belonging to three different chains to analyze relationships between staffing and business performance. All hotels have introduced the same labour scheduling software that forecasts demand and subsequent staffing needs. The software system assists managers in taking forward-looking staffing decisions. However, asymmetric knowledge and different usage practices of the system imply that not all hotels reap its potential benefit. We estimate a dynamic panel data model to estimate which factors influence service productivity. In addition to controlling for seasonality, hotel characteristics and market size we estimate the effect of how usage of a software scheduling system influence labour performance. Moreover, we use a volatility measure of the productivity ratio as an indicator of frequency of over- and understaffing (i.e., mismatch in staffing levels). The results show that those hotels that use the software in a better, as measured by a software system usage index, increase staff efficiency. A large volatility in staffing relative to demand – that is high frequency of staffing mismatch - reduce service productivity. Again, the proper application of the staff scheduling system can reduce the negative effect of staffing mismatch on the productivity level, measured through an interaction effect. The results shows that implementation of software scheduling system is insufficient to increase productivity unless its function is properly integrated in the organization.
The Factor Structure of Spa Satisfaction: a Penalty-Reward Analysis Akarapong Untong1 , School of Tourism Development, Maejo University Vicente Ramos, Department of Applied Economics, University of Balearic Islands Mingsarn Kaosa-ard, Public Policy Studies Institute Abstract This study applies the three-factor structure of satisfaction (Matzler and Sauerwein, 2002) to the classification of the service quality attributes perceived by foreign tourists using spa service in Thailand. A penalty-reward analysis (PRA) was selected for that purpose. The analysis distinguishes between two types of providers, day spas and hotel & resort spas. For this reason, the empirical estimates are based on two samples of international tourists (332 day spa users, and 390 hotel & resort spa users). In a context where the segment of wellness tourism is experiencing a remarkable increase, the contribution of this research is to clarify the impact of the different service attributes on tourists’ overall satisfaction. From a managerial point of view, the conclusions can be used to design and prioritize the competitive strategy of these providers. The results of the study indicate that cleanliness and attention to customer’s complaints were identified as basic requirements. This category identifies those attributes that have to be fulfilled in order to remain in the business, as their failure lead to customer dissatisfaction. Hence, those items should always be prioritized. Meanwhile, massage skills were identified as a common performance factor of spa business in Thailand. This indicates that this element of human resources management explains the relative competitive position of the different providers. Finally, surrounding exterior, interior and ambience and customers’ privacy should be treated as excitement factors. In this sense, special attention to those attributes can be used to surprise costumers, which lead to an assessment of the service above expectations. This last typology of attributes is the one in which the provider should focus to generate competitive advantage than can explain differentiation from other suppliers. The results show that beyond the common trends indicated in the previous paragraph, there are differences between day spa and hotel & resort spa users. Clients of day spa consider as necessary conditions adequate: range of treatments, waiting time, and information. While the strategies for achieving competitive advantages in this segment should pay attention to room and facilities, peacefulness and problem-solving abilities of staff/therapists. In the case of the hotel & resort spa, their customers expect appropriate room and facilities, and peacefulness. Regarding the elements of competition in this market, reasonable waiting time, and problem-solving abilities of staff/therapist are identified as relevant items. Finally, differentiation can be achieved through improvements in the range of treatments and information. This paper takes a business-oriented approach. However, if the findings are proven to be generalizable by future research, they also identify and rank the elements which should be included in the public policies of those destinations willing to improve the competitiveness of their tourism products related with spa services. In this sense, appropriate certification of cleanliness and customer service, and human capital improvement of therapists’ skills, are among the elements that should be in the agenda of policymakers. 1
School of Tourism Development, Maejo University, 63 Moo 4 Nong Han, Sansia, Chiang Mai, 50290, Thailand. E-mail: akarapong_un@hotmail.com.
A Stimuli-Response Decision Model of Chinese Travelers to Thailand Akarapong Untong1, School of Tourism Development, Maejo University Vicente Ramos, Department of Applied Economics, University of Balearic Islands Danaitun Pongpatcharatomtep, College of Arts, Media and Technology, Chiang Mai University, Mingsarn Kaosa-ard, Public Policy Studies Institute Abstract This article examines the impact of stimuli factors (macro and marketing factors) on the response behaviour of Chinese travels to Thailand (willingness to travel in the next five years, budget allocation, and length of stay). The study adapts the stimuli response model of buyer behaviour to develop a causal model between the marketing factors and the decision process. A structural equation model (SEM) is used to analyse 383 primary data observations obtained from interviews to Chinese residents in Hangzhou city, Zhejiang province. The model includes nineteen observed variables (seventeen continuous variables and two categorical variables), and nine latent variables. The coefficients are estimated by WLSMV (weighted least squares means and variance adjusted). The statistically significant causal relationships between the stimuli factors and the response behaviour showed that the marketing factors have a strong influence on the willingness to visit Thailand, and they also affect the allocated budget. However, they do not affect to the expected length of stay.
1
School of Tourism Development, Maejo University, 63 Moo 4 Nong Han, Sansia, Chiang Mai, 50290, Thailand. E-mail: akarapong_un@hotmail.com.
EUROPEAN TOURISM: A CENTRE – PERIPHERY PERSPECTIVE Mara Ursache (Alexander Ioan Cuza University of Iasi)
Regional inequality associated with the weakness of the economic recovery
following
the
global
recession
amplified
not
only
economic but also social instability. Moreover it became evident that
the
further
downturn
has
augmenting
had
uneven
very
different
economic
impacts
development.
spatially, In
Europe,
considerable social and economic gaps recur between and within national economies, between the core and the periphery. Assessing resilience is of growing importance as change processes and their interrelations
have
become
more
complex.
Tourism
is
a
good
example of an evolving complex system that adapts and recovers from perturbation and accumulates various forms of capital which allow faster renewal and stronger structures. However challenges are
often
place
differentiation
specific
and
thus
unevenness
explaining of
the
the
resilience
geographical of
tourist
destinations facing volatile and uncertain changes. The article focuses on the analysis of the links created between the economic and spatial periphery of the eastern versus southern periphery of the EU. Using a set of selective tourism indicators and the cartographic method we will try to answer questions as: Does spatial position influence the degree of tourism development? Are there any similarities or differences between the Eastern and Southern periphery? Could the southern periphery be an example for the Eastern one? Does tourism maintain the centre-periphery configuration
or
economic
social
and
could
it
be
a
disparities?
successful The
tool
results
of
for
reducing
this
study
indicate that while tourism is spreading towards more remote regions the lower rate of tourism development in the eastern
periphery periphery,
is as
usually the
correlated
performance
with of
a
the
degree
region
of
depends
evolution and characteristics of neighboring regions.
spatial on
the
Title Industry and services in the Balearic Islands 1950-2015: Regional deindustrialisation in a service economy Carles Manera Elisabeth Valle University of the Balearic Islands
Abstract The research focusses on an analysis of the changing Balearic economy between 1950 and 2015, with an emphasis on the loss of manufacturing assets and the decisive progress of the service sector, particularly tourism. Theoretical arguments from economic literature are set out to specify whether this manufacturing decline, involving a tertiarisation of the economy, represents the complete disappearance of any other initiative outside the service sector. The authors use macroeconomic variables from the Balearic Islands to lay out the general context and an analysis of the input-output tables (a key tool in national accounting) to study the initial hypothesis with greater precision: services in mature economies can stimulate industrial activity if a wider and more up-to-date view of industry is adopted.
The Tourism Economy In Spain, 1900-1939: New Sources, New Methodologies And New Results Rafael Vallejo Pousada Department of Fundamentals of Economic Analysis and Economic History. Faculty of Economics and Business of Vigo. University of Vigo. Campus de As Lagoas, s/n, 36210 Vigo. Galicia - Spain. E-mail: vallejo@uvigo.es
Elvira Lindoso Tato Department of Applied Economics I. Faculty of Economics and Business of A Coruña. University of A Coruña. Campus de Elviña s/n, Galicia - Spain. E-mail: elviralt@udc.es
And Margarita Vilar Rodríguez Department of Applied Economics I. Faculty of Economics and Business of A Coruña University of A Coruña. Campus de Elviña s/n, Galicia - Spain. E-mail: mvilar@udc.es
Abstract This paper explores the economic dimension of Spain's tourism resources during the first third of the 20th century using new quantitative and qualitative evidence. In general terms, tourism resources can be described as assets, goods, services, resources and infrastructures ordered and structured in such a manner as to make them commercially available for use or consumption by tourists". It is, therefore, a concept that encompasses both a region’s natural resources and its tourism-related businesses. Since the statistical constraints of the period in question and the need to limit the length of the article make it impossible for this study to address all the tourist activities conducted in Spain, attention will be focussed on four key types of tourism assets: hotels/hostels, spas, transport and tourism agencies and other related businesses. The work is divided into three large sections. The first part critically analyses available historical sources and uses them to create a series of indicators. The second part looks at how important tourism was to the Spanish economy in the early 20th century, as reflected in the few known macro-magnitudes corresponding to the period 1900-1939, and quantifies the country’s tourism resources using the accounting records of related economic activities. The final section analyses and quantifies the four key areas of tourism stock mentioned above. The information available has made it possible to present new series of statistics for accommodation and spa resources and tourism brokering in pre-Civil War Spain
Online Hotel Demand Model and Own-Price Elasticities in a Mature Resort Destination ALDRIC VIVES. Pre-doctoral researcher. Department of Applied Economics, University of the Balearic Islands (Spain) MARTA JACOB. Associate Professor. Department of Applied Economics, University of the Balearic Islands (Spain) EUGENI AGUILĂ“. Emeritus Professor. Department of Applied Economics, University of the Balearic Islands (Spain)
Abstract This paper attempts to fill a current gap in the literature by presenting a specific demand model aimed at measuring own-price elasticity values throughout different seasonal demands and across booking horizons. The availability of own-price elasticity values will enable analysis and comparison across the different booking times, seasonal demands and among different hotels, in such a way as to allow the possibility of supporting or rejecting affirmations such as: hotel resort peak season demand is inelastic while low season demand is elastic, or early bookings are more elastic when compared to bookings made close to the holiday date. We present an empirical application of specific demand model, using data for two hotels in Majorca and estimating different seasonal elasticities for the online booking segment. METHODOLOGY: Estimating the hotel demand function is the easiest direct way of obtaining own-price elasticity. The strategy followed is to define different demand functions for homogeneous stay periods and booking periods, allowing for time differences within these periods, in order to capture the temporal and price effects on reservations (demand intensity: the average daily room reservations for the period of time across the booking horizon where price remains constant). RESULTS AND CONTRIBUTIONS: (1) The elasticity values displayed by both hotels are not so inelastic as those gathered in the hotel demand literature; (2) The two hotels have completely different elasticity patterns during peak season and an awareness of these values could lead to changes in their shared early booking strategy; meanwhile in the low season, demand is quite inelastic for both hotels; (3) The early booking strategy is proportionally constant throughout the season, while elasticity values are very different in low and peak season; therefore, setting different early bookings offers during the seasons and among hotels is highly recommendable; and (4) Knowing own-price elasticity values from past seasons can also have an impact on the long- to mediumterm pricing strategy. LIMITATIONS: Some limitations in our study are that it does not include additional data from the hotel or competitor prices, which possibly improve elasticity estimations.
CONCLUSIONS: Knowledge of demand response to price variations is a key tool in hotel sector pricing management. This is especially true in the emerging online demand segments for resort hotels, particularly in the case of mature destinations needing to diversify in today’s current competitive scenario. The results could be useful in short-run pricing focused on revenue maximization (tactical price optimization), as well as in the definition of an appropriate pricing strategy (medium and long-run pricing) for online demand in resort hotels in a mature destination.
Price Variation Sources, Customer Segmentation, and Price optimization Methods in the Hotel Sector: A Critical Review of the Literature ALDRIC VIVES. Department of Applied Economics, University of the Balearic Islands (Spain) MARTA JACOB. Department of Applied Economics, University of the Balearic Islands (Spain) MARGARITA PAYERAS. Department of Applied Economics, University of the Balearic Islands (Spain)
Abstract During the last two decades the Pricing and Revenue Management (RM) techniques have become a popular area of research in the tourism literature. The RM techniques have contributed to the profits improvement of many companies without the need of offering different products or selling them to different customers. In the hotel sector, after the 9/11 events, the RM systems have evolved from capacity control processes to complex customer behavior control methods. Thus, demand forecasting and inventory management optimization shift to segment the demand forecasts and the posterior optimization at the hotel level. The new technologies have clearly contributed to the RM system generalization and the companies’ customer orientation shift. This has led to a larger revenue improvement in those hotels that implemented these procedures. Hotel pricing can respond to different factors, which involve different time horizons. The short-run price variability responds to the revenue maximization goal through the demand fluctuation across booking time. The medium-run price variability obeys to the management of prices that take longer periods of time, so they have a more strategic perspective and depend on the past experience and the demand knowledge. Finally, the long run pricing is affected by long-lasting factors such as: contracts with intermediaries or hotels fixed assets. The aims of the reviews are two-fold: first, we seek to determine and classify the main sources of hotel pricing (customer segmentation), as well as the price optimization methods available in the literature, and secondly, to provide a summary of the directions of research in which the hotel pricing and the hotel RM literature is moving. A literature review on Price Variation Sources, Customer Segmentation, and Price optimization Methods in the Hotel Sector reveals that the context and evolution of the sector, as well as the generalization of new technologies have allowed the pricing and RM tools development to a customer market orientation and towards better processes in the hotel management performance at
the establishment level. Thus, the price optimization methods seeking the hotel revenue maximization are based on the inventory scarcity, the customer segmentation and pricing. In the hotel sector the own-price elasticity has a greater impact than competition measurement effects when compared with the airline sector. Mainly, this is due to the possibilities of hotel’s differentiation and particular hotel policies reduce the competitive environment pressures. Future research should analyze in depth the demand segmentation and the development of more holistic price optimization methods at the hotel level.
Social responsibility toward community and small tourism enterprises’ performance: the moderating effects of owners’ demographics Caiping Wang1, Honggang Xu1, Gang Li2, Jason (Li) Chen2 1.School of Tourism Management, Sun Yat Sen University, China; 2.School of Hospitality and Tourism Management, University of Surrey, UK
Abstract Small
tourism
enterprise
(STE)
has
unique
perspectives
on
socially responsible behaviors due to their firm and industry specifications
and
their
ties
to
the
community.
tries to find the association between
This
study
social responsibility
towards community and STEs performance. Upper echelons theory was
used
to
demographic Based
on
explore
the
mediating
characteristics
the
on
this
self-administered
effect
of
association
on-site
STEs
owners’
in
further.
questionnaire
survey
conducted with STE owners in the historic towns of Dali and Yangshuo in Southwest areas of China, the empirical findings firstly
prove
community
has
that two
STEs’
social
dimensions,
responsibility
community
towards
engagement
and
operational support. The former contributes to both objective and subjective performance of STEs; the latter only increases firms’
objective
influence
of
performance
community
significantly.
engagement
on
STEs’
Secondly,
the
performance
is
moderated by the owners’ demographics, including age, gender, ethnicity, and native place. This study bridges the gap by applying upper echelons theory in a unique context of small tourism business’s CSR. Meanwhile, this study also contributes to the tourism literature by finding the two dimensions of STEs’ social responsibility towards community, and the unique relations between these dimensions and firms’ performance. The practical implication is also discussed in this study.
Forecasting Tourism Demand Using Search Query Data: A Hybrid Modelling Approach Long Wen, University of Nottingham Ningbo China * Chang Liu, University of Nottingham Ningbo China Haiyan Song, The Hong Kong Polytechnic University
Search query data have recently been used to forecast tourism demand. Linear models, particularly autoregressive integrated moving average with exogenous variable (ARIMAX) models, are often used to assess the predictive power of search query data. However, they are limited by their inability to model nonlinearity due to their pre-assumed linear forms. Artificial neural network (ANN) models could be used to model nonlinearity, but mixed results indicate that it is not appropriate to blindly apply ANN models in all situations. A new hybrid model is thus proposed in this study. It combines the linear and nonlinear features from component models and outperforms other models when forecasting arrivals of tourists in Hong Kong from mainland China. This study demonstrates the advantage of adopting hybrid models in forecasting tourism demand with search query data.
*
199 Taikang East Road, Long.wen@nottingham.edu.cn
Ningbo,
315100,
China.
address:
Past Unknown: Living Archaeological Digs as a Stimulus to Tourism Ryan White and Daniel Langehough (under dir. of Prof. R. Alden Smith) Baylor University Key words: Tourism industry, innovation, archaeology, archeotourism
Bourdain,
Global cultural tourism is currently hindered by a number of ongoing factors, such as fear of terrorism, xenophobia, and a lack of infrastructure in some of the world’s most fascinating archaeological sites. However, there have always been causes of apprehension for would-be world travelers, yet there is a drive in the human spirit that reaches to explore and engage in the world around it. Cultural engagement is the inevitable destination of that spirit. Locally invested archaeological sites provide an arena for innovative strategies to channel the movement of the market in a fresh and dynamic direction that will stimulate local economies and protect archaeological sites. The value in a cultural heritage site is the collective cultural value (on the local and societal level) combined with the public market value that the site provides. This paper addresses the key challenge of combining cultural value and global market value in a way that makes the site most accessible to the tourism market while simultaneously protecting global cultural heritage site and disseminating information about the past. Television shows such as Parts Unknown with Anthony Bourdain, Expedition Unknown with Josh Gates, and even Jack Maxwell’s Booze Traveler attempt to combine these aspects of the cultural and public value in vibrant ways through electronic screens. Bourdain’s show, for example, broadcasts from exotic locations, offering a televised taste of a would-be intimate cultural experience. Maxwell engages with near and distant cultures by considering the alcohol influenced sectors of a society. Gates, by contrast, comes off as the adventurer extraordinaire, highlighting famous sites and the mystery of local cultural marvels. The wishful passenger can watch programs such as these from the comfort of home but without the truly intimate cultural experience. What lessons can we draw from the popularity of such television shows, and how might we apply these lessons to better join the factors of local cultural value and global market value? Bettercoordinated, archaeological tourism can offer true innovation in this regard, specifically a solution to a lack of engagement in tourism by those who would like to participate. The popularity of television shows as those described above evidences that, with proper incentive and stimulation, many would enjoy traveling and engaging with different cultures in intimate and authentic ways. In this paper, we argue that locally invested archaeological sites offer the paramount means to create such incentives. Following the work of Ivanc and Gomes (2015) on utilizing the value of cultural
heritage sights for local revitalization, along with valuable insight from McKercher and Du Cros (2002) into the role of gatekeepers for the spreading of information and heritage protection, we present a method to stimulate interest in tourism by coordinating the already existing archaeological tourism industry with the local towns that have the opportunity to provide intimate and authentic engagement with heritage sites. This paper calls for a coordinated effort, one spearheaded by an organization such as Associazione Internazionale di Archeologia Classica in close coordination with the Associazione Italiana di Cultura Classica and the American Institute of Archaeology et sim. to promote vigorously local archeotourism. Such an effort would encourage tourists to seek out a local, on-site experience that goes beyond the television screen. We propose strategic advertising through web wholesalers like Expedia, and careful coordination of professional associations with local stakeholders through outlets such as AirBnB to channel the tourism drive into the local markets.
Tourism Demand Modelling – A Nonlinear Approach Doris Chenguang Wu (Sun Yat-sen University) Jason Li Chen (University of Surrey) Gang Li (University of Surrey) Haiyan Song (Hong Kong Polytechnic University) Abstract Tourism demand modelling and forecasting has been widely discussed in the literature. But most of studies employs a linear model assuming a linear relationship between dependent and independent variables. This study attempts bridge this gap by using a nonlinear approach, namely, the smooth transition method, to modelling tourism demand. The empirical study examines the inbound tourism demand to Hong Kong from its top source markets. The results identify significant nonlinear characteristics in the tourism demand systems. This study provides empirical evidence that the smooth transition model is an effective tool to capture the nonlinear feature in a tourism demand system.
Is forecast combination a choice when interval forecasts are required? Doris Chenguang Wu Associate Professor Business School Sun Yat-sen University Guangzhou 510275 China Email: wucheng@mail.sysu.edu.cn Menglin Zhou Undergraduate Student Sun Yat-sen University
Abstract Producing accurate tourism demand forecasts is continuously a particular interest for both academics and practitioners, for its important role to help facilitate business planning and decision making. There have been a large amount of empirical studies examining tourism demand forecasting accuracy employing different forecasting techniques. It is observed that amongst these existing studies, two aspects have obtained relatively rare attention. One is that the majority focuses on point forecasting, whereas only a few studies examine interval forecasting. The other is that the application of combination technique on forecasting intervals achieves even more little attention. This study therefore aims to evaluate the forecasting performance of combination technique when forecasting intervals are concerned. The eight source markets of Hong Kong inbound tourism are examined separately. Eight single models are involved to produce combined interval forecasts: naĂŻve, autoregressive, autoregressive integrated moving average, structural time series, general autoregressive distributed lag (ADL), specific ADL, error correction, and time-varying parameter models. Since combining intervals directly is with problem due to improper probability offered to the interval, the combination of interval forecasts of given probability is achieved by combining density forecasts. The Winkler score is employed to evaluate forecasting accuracy. The empirical results indicate that the combined intervals outperform the average performance of single models involved. It is further verified that when numbers of single models involved in combination arise, the combined intervals are more accurate. The conclusion of this study supports and encourages the adoption of combination technique when interval forecasting for tourism demand is required. Keywords: interval forecasts, forecast density forecast, Hong Kong tourism demand
combination
technique,
The Impact of UK’S Climate Conditions on Inbound Tourism Demand from Italy XI WU Faculty of Management, Bournemouth University, UK E-mail: xwu@bournemouth.ac.uk SHUANG CANG* Faculty of Management, Bournemouth University, UK E-mail: scang@bournemouth.ac.uk ADAM BLAKE Faculty of Management, Bournemouth University, UK E-mail: ablake@bournemouth.ac.uk *Corresponding author
Abstract: Climate conditions are important tourism resources which can influence tourists’ decision as to when and where to travel, however, the value of climate variables in tourism demand analysis has been under-researched. This study assesses the impact of UK’s climate conditions on its inbound tourism demand from Italy. ADLM bounds test approach is employed to investigate both the longrun relationships and the short-run dynamics in tourism demand and its determinants, and the effect of climate conditions on tourism demand is evaluated based on quarterly time series data from 1995Q1 to 2015Q4. The result shows that climate conditions have significant impact on tourism demand, and better climate conditions contribute to more tourism demand. It is suggested that climate variables should be taken into consideration when modelling tourism demand. Keywords: tourism demand; climate conditions; ADLM bounds test; cointegration; tourism climatic index
The Different Effects between Tourism Arrivals and Receipts on Poverty Alleviation: A Panel Quantile Regression Analysis Hanlin XU, University of Rikkyo Abstract As one of the largest economic sectors and a catalyst for economic growth in developing countries, tourism has been regarded as an important tool to achieve sustainable development, especially in the perspective of poverty alleviation. Indeed, raising international tourism income is probably recognized as one of the most readily ways to reduce poverty. However, mixed conclusions are found in case studies, which imply that tourism failed to provide the homologous effect on poverty alleviation in different developing regions. Although there are significant amount of strategy researches, which eager to lessen poverty by adopting tourism, there is no studies focusing on the differences between international tourism receipts and international tourists on poverty reduction. The purpose of this paper is to estimate the impact of tourism on poverty alleviation by adopting the panel quantile regression model. Specifically, the study attempts to analyse whether the two tourism indexes, tourism receipts (TR) and the number of arrivals (TA), have the same effect on poverty alleviation or not. The analysis is conducted OLS method, and panel quantile regression techniques based on the global panel data of 66 developing countries from 1995 to 2012. The estimated results suggest that 1) The effect of increasing international tourism arrivals on poverty reduction is equal or more than the effect of increasing international tourism receipts. And this result is consistent at all quantile levels. 2) Quantile regression technique is a more suitable method in anti-poverty tourism analysis as tourism has the heterogeneous effect on poverty alleviation. In conclusion, although both the tourism indexes, TA and TR, have positive effect on poverty alleviation, the poverty reduction effect of increasing the number of tourists is greater than raising tourism receipt. Especially the contribution of international tourism arrivals has been neglected in both academic researches and strategy papers. Using the number of tourists and tourism income indiscriminately may lead a misunderstanding of tourism-poverty nexus.
Sleepless nights in hotels? Understanding guests' sleep quality from online reviews Yang Yang School of Sport, Tourism and Hospitality Management, Temple University Zhenxing (Eddie) Mao The Collins College of Hospitality Management, California State Polytechnic University, Pomona Abstract: Sleep quality heavily shapes the overall hotel experience as the sleep hours account for most time of guests’ hotel stay. However, understanding guest experience and relevant factors in sleep during travel remains under researched as most extant studies are only on activities while guests are awake. In this study, we use the TripAdvisor hotel review data in Los Angeles to investigate how different factors help influence the level of sleep quality rated by reviewers. The empirical study consists of two steps. In the first step, we conduct text mining and sentimental analysis on review content related to sleep quality, and calculate the sentiment scores for several popular reviewed issues associated with sleep quality, such as noise, pillow, bedding, mattress, and room temperature. In the second step, we estimate an ordered logit model to understand how sleep quality score from TripAdvisor is influenced by a set of factors including hotel location (distance to airport, greenness of neighborhood, urbanization of neighborhood), hotel amenity (floors and star rating), reviewer demographics (age and gender), and reviewer tripographics (travel type, travel expertise, and travel distance) as well as sentiment scores obtained from the first step. The estimation results suggest that apart from hotel location factors, all factors play significant roles in shaping the level of sleep quality. Also, we found that among different sentiment scores, noise, pillow and bedding are the most important factors. Implications for improving guests’ sleep quality are provided in the end.
Keywords: sleep quality; online reviews; ordered logit model; sentimental analysis
The Impact of the Managerial Judgment in Benchmarking of Cities: Does It Make a Difference in the End? Bozana Zekan, MODUL University Vienna Abstract The current study builds upon and links the two studies presented at IATE 2013 and IATE 2015, all of which are at the core of the author’s completed doctoral dissertation research. More precisely, one of the major findings of the first study that ventured into involving the city tourism organizations/convention and visitor bureaux (CTOs/CVBs) in the decision making process on the selection of benchmarking variables was a matrix of individual importance weights for various objectives and a corresponding hierarchical clustering, which demonstrated the similarities in weight patterns among 37 respondents. In other words, it was evident how respondents from the individual cities weighted the offered objectives, and which cities had a similar weight allocation, hence, were consequently clustered together. Continually, the second study consisted of two comprehensive longitudinal benchmarking analyses of European cities and corresponding two models, based on the non-weighted indicators that were identified in the preceding study. The aim of the current study is to show the impact of the managerial judgment/weights in benchmarking of cities by adding more layers of data envelopment analysis (DEA). Yet, in this endeavor, it was not presupposed that every indicator is equally important for every city, but instead the individual weight factors were added to the indicators. In more detail, such study was first done on the cluster of cities due to: (1) data availability (i.e., not all cities that rated the objectives actually provided the data for them, which has led to a difference in samples between the two studies); and (2) an attempt to analyze the cities that had the similar weight allocation in respect to importance of the objectives, hence, resulting in the meaningful competitive analysis. Moreover, the same steps were also repeated on the sample of all cities for which data were available, irrespective of the heterogeneity of their ratings. Two DEAs, nonweighted and weighted, were run on both samples (cluster and all cities); efficiency scores of the cities generated in the nonweighted DEA could then be compared to the weighted scores and checked for any discrepancies. Thus, overall purpose being to demonstrate the changes induced by introducing weights on two diverse samples. In addition, Spearman rank correlation and Pearson correlation tests were run in order to inspect the correlation between the non-weighted and weighted efficiency scores of the individual cities. Two more tests, a parametric ttest and a nonparametric Wilcoxon test for paired samples, were also run due to the fact that correlation ignores the difference in the mean values.
As observed, some results were corroborated, whilst some differences did occur as well (proposed benchmarking partners for example). This was rather important finding as it proves that the benchmarking partners are clearly allocated based on the weighting of each objective. Supporters of the non-weighted approach (i.e., all variables equally important) could argue that the managerial judgment is a subjective data, whereas supporters of the weighted approach could go as far as to posit that exclusion of the weights may result in a somewhat misleading efficiency analysis. However, based on the outcomes of this study, it can certainly be suggested that if and whenever possible, one should opt to run both nonweighted and weighted analyses in order to get a more complete overview of the units’ efficiency, and ultimately, better reflect on the real life situations. Thus, on a final note, it can be argued that this study has pointed toward the importance of taking the stakeholders’ judgment into account and has opened the new paths when it comes to the interpretation of the efficiency scores – an area that is indisputably fully unexplored within the destination benchmarking domain to date.
Benchmarking of Airbnb Providers: How Competitive Are European Cities? Bozana Zekan, Irem Önder and Ulrich Gunter, MODUL University Vienna
Abstract Airbnb, which is a part of sharing economy, has major impacts on the tourism industry. These impacts are both positive and negative. They are positive since the number of bednights at a destination may increase due to the Airbnb options. Increasing competition is also expected to result, overall, in lower prices for costumers in the accommodation industry. On the other hand, they can be negative due to many Airbnb accommodations not being registered and not paying taxes, whereas hotels have to do both. Thus, if there are no legal requirements regarding the Airbnb accommodations at the destination, this can create unequal playground for the whole accommodation industry; especially for hotels. Reality is that Airbnbs are already spread around the world, are very popular among young travelers in particular, and as such are negatively influencing the demand for hotels and, in turn, their revenue. Hence, one cannot ignore their impact on the destinations and the role they may play in their overall competitiveness. Moreover, it can be argued that not all destinations are equally successful when it comes to adapting the sharing economy, which triggered the interest for the current study. In other words, which destinations are performing best when it comes to their Airbnb providers? This is a clear call for an efficiency analysis. When opting to investigate the efficiency (i.e. competitiveness) of European cities in specific within the Airbnb domain, data envelopment analysis (DEA) was deemed to be the most appropriate methodology for such an endeavor. The final sample consisted of 29 cities (decision making units = DMUs) across Europe, which provided detailed annual data (July 2015 – June 2016) on their Airbnb providers. Four input (e.g. number of properties, maximum number of guests) and four output variables (e.g. number of bookings, overall rating) were modeled within the DEA framework, thus, respecting the arguable ‘rule of thumb’ principle concerning the number of DMUs and the number of indicators. The BCC (Banker, Charnes, Cooper), also known as the VRS (Variable Returns to Scale), radial model was used in the computations of the outputoriented efficiency scores, as it was the most fitting to the present study. The results bring an overview of the efficient and inefficient cities, benchmarking partners, as well as virtual benchmarks in order to account for the heterogeneity among the cities. In addition, the original model was altered in terms of indicators on several instances, and the analyses repeated in order to inspect
the results for corroboration/discrepancies, thus, adding an interactivity note to the DEA modeling. The major outcome of this study lies not only in identifying the best practice cities, but also in pointing toward the areas for improvement and the actual benchmarking partners for the inefficient ones. And by doing so, giving such cities a chance to properly utilize their respective inputs and consequently become more competitive within the Airbnb domain.
Tourism development and regional productivity efficiency: evidence from southwest China Bo Zhou, Xiamen University; Yanping Xu, Xiamen University* Abstract There is no doubt that to develop a region’s tourism industry can benefit the local economy, especially in poor regions, given that the increase of tourist flows to a region generally corresponds to the investment of regional infrastructure, the start of businesses oriented to meet the requirements of tourists, as well as significant revenue contributed by tourists. As an indirect impact, tourism flows may act as a channel of new information, which help the local businesses to innovate, enhance their efficiency eventually. Inspired by Marrocu and Paci, the purpose of this paper is to estimate the influence of tourism flows on the total factor productivity (TFP) of a region, a measure of regional innovation. Our research uses domestic tourism flows and inbound tourism flows as independent variables separately and test the difference on region productivity efficiency. The spatial panel data models are employed for the panel data of 46 prefecture-level cities and regions in southwest China with the period of 2005-2014. On the one hand, southwest China (including Sichuan province, Yunnan province and Guizhou province) is an undeveloped region in terms of economy development. The overall economy level of southwest China lags far behind those of the central and eastern China, and many people in this region are afflicted with poverty for a long-time period. On the other hand, Southwest China boasts rich natural and cultural heritage, rooted in unique culture of local minority nationalities, which may be exploited for tourism development. Actually, many regions in southwest China have experienced the rapid increase of tourist demand, such as Lijiang city in Yunnan Province and Leshan city in Sichuan province. These make southwest China a suitable research area for this study. The basic model is established as follow. n
lnTFP it =β0 +β1 lnTF it +δWlnTFP it + ∑ βj x jt +α i +ε it j=1
(1) In equation (1), TFP (total factor productivity of a region) represents productivity efficiency, which is explained variable in this study. TF is the tourist flows to a region, the explanatory N
W ln TFPit = ∑ j =1 wijTFPjt
variable in the model. , indicates the spatial effect. W is a spatial weighting matrix and Wij is the element of the spatial weighting matrix to measure the spatial connection ** Corresponds to professor Bo Zhou: E-mail: friendzhoubo@xmu.edu.cn; Address: 422-25 South Siming Road, Xiamen City, Fujian province, China; Post code: 361005.
between city i and city j. W ij is 1 if and share a border; otherwise, 0. xj represents one of controlled variables which are determinants of productivity efficiency. The empirical results show that domestic tourism flows have positive influence on the regions’ total factor productivity, while inbound tourism flows have no significant impact. Additionally, the spill-over effect of the total factor productivity exists for the sample cities and regions. This finding has an important implication for development of regions, especially the economically under-developed regions such as southwest China.