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Tourism Economics
Journal Prestige (SJR): 0.665 ![]() Citation Impact (citeScore): 1 Number of Followers: 10 ![]() ISSN (Print) 1354-8166 - ISSN (Online) 2044-0375 Published by Sage Publications ![]() |
- Proposing spacetime scale for space tourism economics
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Authors: Kang-Lin Peng, Cathy H.C. Hsu, Pearl M.C. Lin, Meng Su
Abstract: Tourism Economics, Ahead of Print.
This research proposes the spacetime scale to derive a space tourism economic model based on the General Relativity Theory. The space curvature is considered in the economic model analogized to a physic theory to expand the horizons of tourism economics. The deductive reasoning and analogy methods were adopted to propose the spacetime scale for space tourism economics, accommodating the conventional economic models of near-flat space commodities on the earth. Conclusions suggest conquering our perception acceptance from linear time to curvilinear spacetime for space tourism economics.
Citation: Tourism Economics
PubDate: 2022-06-17T06:02:41Z
DOI: 10.1177/13548166221109666
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- An early assessment of COVID-19’s impact on tourism in U.S. counties
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Authors: Luyi Han, Stephan J Goetz, Daniel Eades, Jason Entsminger, Doug Arbogast
Abstract: Tourism Economics, Ahead of Print.
We use county-level data to examine how the COVID-19 pandemic affected the tourism and hospitality sector, which was by far the most impacted of all sectors, focusing on employment and wage changes. Results support our hypothesis that rural counties experienced fewer negative impacts or even benefited from the COVID-19 pandemic in terms of job growth. We present maps showing the pandemic’s effects on leisure and hospitality (L&H) employment across the nation, identifying the communities both hardest hit and least impacted. A linear regression model is developed to explore independent factors that influenced the pandemic’s local impact. Results are robust across different measures of the key variable (rurality), including rural-urban continuum codes, distance from metropolitan areas, and population density. We also consider the impacts of social capital, income, and local economic diversification, among other factors. Our results suggest that remote, less-populated counties were more likely to experience stable employment in the L&H sector relative to pre-pandemic levels, and in some cases even experienced employment growth.JEL Classification: J2, J3, R1
Citation: Tourism Economics
PubDate: 2022-06-16T09:43:07Z
DOI: 10.1177/13548166221107814
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- Tourism, urbanization, and urban income inequality in China
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Authors: Jiekuan Zhang
Abstract: Tourism Economics, Ahead of Print.
Despite the persisting interest in the nexus of tourism and income inequality, the relationships between tourism and urban income inequality remain unknown. In the past few decades, tourism, urbanization, and urban income inequality are all prominent social and economic phenomena in China. This study investigates such relationships and the underlying influence mechanism of urbanization based on provincial panel data in China between 1995 and 2019. The results show that tourism significantly increases urban income inequality. Moreover, there exists a Kuznets curve between tourism and urban income inequality. When the ratio of tourism revenue to GDP reaches the value of 0.416, the positive influence of tourism on urban income inequality reaches its maximum. Most of China’s provinces currently face the positive influence of tourism on urban income inequality. Besides, urbanization partially mediates tourism’s effects on urban income inequality. Heterogeneity analysis indicates that in high-urbanization, high-income, and low economic levels regions, tourism increases urban income inequality to a greater extent. This article enriches the knowledge of the association between tourism and income distribution.
Citation: Tourism Economics
PubDate: 2022-06-13T01:41:31Z
DOI: 10.1177/13548166221108121
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- Spatial spillovers of tourism activity on housing prices: The case of
Croatia-
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Authors: Maruška Vizek, Nebojša Stojčić, Josip Mikulić
Abstract: Tourism Economics, Ahead of Print.
The tourism effects on housing prices within cities and regions have been analyzed in the literature, but there is a lack of evidence on the spatial effects of these processes. In areas hit by overtourism, house price hikes have the potential of spillovers to adjacent cities and towns as well as across wider space. Our study widens existing knowledge on the tourism-housing relationship by exploring the existence and extent of spatial spillovers from tourism-intensive cities and towns on housing prices of neighboring areas. A Durbin spatial autoregression panel model is applied on a population of cities and towns from Croatia, one of the small tourism-driven European economies during the 2012–2019 period. Different spatial weight matrices are applied to the model to explore the spatial reach of effects. Our findings, robust to the use of different tourism activity proxies, provide support to the existence of spatial spillover effects. The strongest effects of tourism on housing prices within and between cities come through the conversion of housing stock in rental properties rather than through the increase of private accommodation share in total accommodation capacities. Particularly strong effects are found once full spatial correlation is taken into account.
Citation: Tourism Economics
PubDate: 2022-06-11T07:49:28Z
DOI: 10.1177/13548166221106442
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- Measuring tourism demand nowcasting performance using a monotonicity test
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Authors: Han Liu, Yongjing Wang, Haiyan Song, Ying Liu
Abstract: Tourism Economics, Ahead of Print.
Tourism demand nowcasting is generally carried out using econometric models that incorporate either macroeconomic variables or search query data as explanatory variables. Nowcasting model accuracy is normally evaluated by traditional loss functions. This study proposes a novel statistical method, the monotonicity test, to assess whether the nowcasting errors obtained from the ordinary least squares, generalised dynamic factor model and generalised dynamic factor model combined with mixed data sampling model are monotonically decreasing when new data on explanatory variables become available, based on the mixed frequency data between 1 January 2011 and 31 December 2019. The results of the empirical analysis show that nowcasts generated results based on two data sources combined are superior to that based on a single data source. Compared with traditional loss functions, the monotonicity test leads to a more objective and convincing nowcasting model performance. This study is the first attempt to evaluate tourism demand nowcasting performance using a monotonicity test.
Citation: Tourism Economics
PubDate: 2022-05-27T10:00:56Z
DOI: 10.1177/13548166221104291
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- Psychological factors of Canadian and Mexican tourists and the US tourism
sector-
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Authors: Khandokar Istiak
Abstract: Tourism Economics, Ahead of Print.
This paper investigates the impact of psychological factors of Canadian and Mexican tourists on the US tourism sector. Using the data of 1996–2019, the study uses vector autoregression models and the spillover analysis to perform the investigation. The paper discovers that high insecurity of tourists significantly reduces tourist arrivals, passenger fare receipts, and expenditure of tourists in the US. Also, tourist inflows are highly influenced by insecurity during terrorist attacks, natural disasters, and the financial crisis of the US. It is found that high sentiment of Canadian and Mexican tourists increases their outbound travel to the US, but the impact of sentiment is relatively stronger for the Canadian tourists. Results show that the tourist inflows from Canada and Mexico are influenced by low sentiment during recessionary periods of Canada and Mexico, respectively. The paper finds no robust evidence of mood and nationalism-based retaliation of tourists for traveling to the US.
Citation: Tourism Economics
PubDate: 2022-05-23T04:42:40Z
DOI: 10.1177/13548166221104390
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- Willingness to pay for attributes of Templestay and implications on
marginal utility of different meditation forms-
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Authors: Se-Hyuk Kim, James W Mjelde, Tae-Kyun Kim, Choong-Ki Lee, Byunggil Chun
Abstract: Tourism Economics, Ahead of Print.
Templestays are a form of cultural tourism in which participants visit a Buddhist temple to experience their culture. Using a choice experiment, the marginal willingness to pay (MWTP) is estimated for various attributes of Templestay programs of location, accommodations, and type of meditation. Respondents are willing to pay a premium for private accommodations and to experience the natural mountain settings over an urban setting. The MWTP varies by type of meditation and by how often respondents have participated in a Templestay. For the most physically demanding form of meditation, 108 prostrations, there is weak evidence marginal utility decreases with increasing number of visits. Brewing tea and talking to a monk do not lead to a change in marginal utility. The most spiritually demanding meditation, Seon meditation, shows increasing marginal utility. Seon meditators could benefit from additional stays, as the benefits of this form of meditation can only be achieved through practice and learning from experienced meditators. It is expected that these results will provide information for the diversification of Templestay experience programs.
Citation: Tourism Economics
PubDate: 2022-05-23T02:47:15Z
DOI: 10.1177/13548166221095796
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- Do birds of a feather flock together' Analyzing environmental
performance and tourist behavior using a gravity approach-
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Authors: Muhammad Shafiullah, Usman Khalid, Luke Emeka Okafor
Abstract: Tourism Economics, Ahead of Print.
This study examines whether international tourism flows are affected by differences in the environmental performance of origin and destination countries by conducting an empirical analysis with a gravity panel dataset of 169 origin countries and 157 destination countries from 2000 to 2015. Estimated results show that the difference between environmental performance of a country pair adversely affects international tourism flows. This implies that tourist behavior is particularly influenced by familiarity, behavior conformity, and the need for virtue-signaling. Results also suggest that better environmental performance of the destination relative to the origin, as captured by an overall environmental performance index or its sub-indices, lowers international tourism more than vice-versa. This effect potentially hinges on the tradeoff between functionality and the image of the international tourist destination. Policies that create an enabling milieu for sustainable tourism and environmental practices—such as ecolabeling and targeted advertising—would help attract more environmentally conscious tourists.
Citation: Tourism Economics
PubDate: 2022-05-21T03:52:00Z
DOI: 10.1177/13548166221097025
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- Does firm strategy influence corporate social responsibility and firm
performance' Evidence from the tourism industry-
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Authors: Ali Uyar, Mehmet Ali Koseoglu, Cemil Kuzey, Abdullah S Karaman
Abstract: Tourism Economics, Ahead of Print.
In this study, we explore whether cost leaders and differentiators assume different positions in terms of corporate social responsibility (CSR) engagement. Furthermore, we deepen the investigation by examining whether shareholders appreciate cost leaders or differentiators' CSR engagement which bears implications for the firms and stockholders. The data concerning CSR, firm strategy, and board characteristics for all the companies belonging to the hospitality, tourism, and airline industry between 2013 and 2019 was fetched from Thomson Reuters, and fixed-effects panel regression analysis and Hayes’s moderation analysis methodology are executed. The findings indicate, first, that cost leadership is significantly associated with composite CSR performance and governance performance but not with environmental and social performance. Second, differentiation is significantly associated with composite CSR performance and environmental and social performance but not with governance performance. Third, moderation analysis revealed that cost leadership does not moderate the association between CSR performance in all dimensions and firm value, differentiation moderates the association between CSR performance in all dimensions and firm value negatively.
Citation: Tourism Economics
PubDate: 2022-05-20T06:16:07Z
DOI: 10.1177/13548166221102806
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- Emigrants’ visit home and remittance inflows nexus
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Authors: Faruk Balli, Thi Thu Ha Nguyen, Hatice Ozer Balli
Abstract: Tourism Economics, Ahead of Print.
Immigrants have created better living standards by emigrating, and they also contribute to their homeland in one of two ways: by visiting as tourists or by sending remittances back home. In this paper, we examine the nexus between these two crucial channels: remittance inflows and emigrants' visits home. We model the emigrants' visits back home and show that remittances inflows per emigrant have a strong impact on emigrants' visits home. However, the relationship is mixed among different regions. For emigrants from Africa and Latin America and Asia, the remittances have a negative impact on home visits, indicating that emigrants send more money and skip visiting their homes subsequently. For emigrants from MENA, there is a significant positive impact of the remittance inflows on home visits.
Citation: Tourism Economics
PubDate: 2022-05-19T04:37:24Z
DOI: 10.1177/13548166221098619
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- Global pandemic uncertainty, pandemic discussion and visitor behaviour: A
comparative tourism demand estimation for the US-
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Authors: Emrah Kocak, Fevzi Okumus, Mehmet Altin
Abstract: Tourism Economics, Ahead of Print.
Tourism is one of the most vulnerable sectors to pandemics. The number of cases and deaths caused by the pandemic directly affects travel decisions. Answering how the public perception of the pandemics affects visitor behaviour can provide important implications for the new normal in tourism. In this context, this paper investigates the impact of global pandemic uncertainty and pandemic discussion on visitor arrivals to the United States from the top 25 origin countries over the period 1999–2020. Non-quantile and quantile panel estimators are employed for heterogeneity and short–long run findings. Accordingly, in the short run, global pandemic uncertainty negatively affects visitor behaviour. However, the pandemic discussion does not have a significant effect. In the long run, pandemic uncertainty and pandemic discussion negatively affect tourist arrivals in all quantiles.
Citation: Tourism Economics
PubDate: 2022-05-19T02:12:03Z
DOI: 10.1177/13548166221100692
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- Analysis on the impact of technological innovation on tourism development:
The case of Yangtze River Delta Urban Agglomeration in China-
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Authors: Chang Gan, Kai Wang, Mihai Voda, Jun Ye, Lijun Chen
Abstract: Tourism Economics, Ahead of Print.
Despite the recognition of the relationship between technological innovation and tourism development, there is a dearth of rigorous empirical specifications to examine the effect of technological innovation on the latter. With 27 cities of the Yangtze River Delta Urban Agglomeration (YRDUA) in China as an empirical case, this study explores whether technological innovation can promote tourism development by using a series of panel regression models. The empirical results indicate that technological innovation has a positive effect on the development of tourism in the YRDUA. With respect to different regions, types of cities, and stages, there are differences in the positive impact of technological innovation on tourism development. Additionally, the impact of different types of technological innovations on tourism development is also diverse.
Citation: Tourism Economics
PubDate: 2022-05-16T11:57:58Z
DOI: 10.1177/13548166221102590
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- The paradox of airbnb, crime and house prices: A reconciliation
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Authors: Ka Shing Cheung, Chung Yim Yiu
Abstract: Tourism Economics, Ahead of Print.
While in many housing studies, Airbnb is evidenced to be a demand driver that leads to a positive effect on property rents and prices, it is also argued that such tourist accommodation in a neighbourhood causes an increase in criminal activities that weigh on its property values. How can we reconcile such contradictory arguments' This research note aims to use a difference-in-differences model to empirically disentangle the moderating effect of Airbnb on the relationship between crime and house prices. Using the housing transaction data in the two census years of the Auckland Region, New Zealand, we demonstrate that the impact of crime on house prices is contingent on the density of Airbnb. After controlling neighbourhood qualities, such as household incomes, ethnicity concentration and proportion of public housing in each census tract, the effect of crime rate on house prices is negatively moderated by the number of Airbnb listings, especially in apartment-type housing. The result can be interpreted as showing the effects of trespassing-related crime on house prices.
Citation: Tourism Economics
PubDate: 2022-05-16T09:12:07Z
DOI: 10.1177/13548166221102808
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- Stronger together: International tourists “spillover” into
close countries-
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Authors: Chansoo Park, Young-Rae Kim, Jihwan Yeon
Abstract: Tourism Economics, Ahead of Print.
This paper explores the spillover effect of spatial proximity on international tourism in all 195 countries using data from the World Bank. We use a spatial proximity measure to calculate the number of neighbors that each country has and how the neighboring nations’ international tourist arrivals “unintentionally” affect each country’s international tourism. We define spatial proximity using both the conventional contiguity measure and the minimum-distance measure (MDM) of proximity: the two closest points between countries on their outer boundaries. By constructing spatial lag models (SLM) and spatial error models (SEM), we capture the spillover effects between neighbors. Our findings suggest that a country’s international tourism flows over the period of 1995–2019 are strongly influenced by international tourist arrivals to the nation’s neighboring countries; ranging from 8.1% to 45.8%, depending on the model used. Particularly, the spillover effect was more prominent for the period from 2015–2019, as compared to 1995–1999, implying increasing dependence among neighboring countries in international tourism, which directly contrasts the common assumption that technology is making geographic distance less relevant. This paper provides several important implications for both scholars and practitioners, although further study is required to determine the effects of historical interactions and spatial relations.
Citation: Tourism Economics
PubDate: 2022-05-15T05:33:04Z
DOI: 10.1177/13548166221098320
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- Escape from air pollution: How does air quality in the place of residence
shape tourism consumption'-
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Authors: Luojia Wang, Kerui Du, Bin Fang, Rob Law
Abstract: Tourism Economics, Ahead of Print.
Air quality has been demonstrated to be an important determinant influencing tourist decision making. In this paper, we investigate the effect of air quality in the place of origin on a resident’s tourism consumption and the moderating effect of household income on this relationship. We develop a conceptual framework to rationalize the effect and empirically examine it at the household level using China Labor-force Dynamics Survey data from 2016. The results show that poor ambient air quality increases tourism consumption. Furthermore, this relationship becomes stronger for the higher-income group: One standard deviation increase in the Air Quality Index would increase tourism expenditure as much as a 22.56% increase in family income. The methods of instrumental variable and functional-coefficient regression were employed for robustness analysis. These findings contribute to the literature by providing a new perspective for tourism demand studies and direct implications for tourism management and policy making.
Citation: Tourism Economics
PubDate: 2022-05-13T01:02:36Z
DOI: 10.1177/13548166221091749
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- Does air pollution affect the tourism industry in the USA' Evidence
from the quantile autoregressive distributed lagged approach-
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Authors: Fengsheng Chien, YunQian Zhang, Arshian Sharif, Muhammad Sadiq, Minh Vu Hieu
Abstract: Tourism Economics, Ahead of Print.
This study scrutinised the influence of air pollution on the USA’s tourism industry along with macroeconomic variables from 1990 to 2020. The analyses were conducted using a novel quantile autoregressive distributed lagged (QARDL) technique to examine the nonlinear association in the long and short run. Additionally, the constancy of the parameters under the short- and long-run estimations was investigated using the Wald test. The QARDL results under different quantiles confirmed that air pollution in terms of carbon dioxide (CO2) emissions and particulate matter (PM2.5) had a negative association with the arrival of international tourists in the USA. However, the long-run estimation for the nonlinear association between gross domestic product (GDP) and tourists' arrival (TA) and between the real effective exchange rate (REER) and TA was positively significant under different quantiles. Alternatively, the estimation of the short run corroborated that the past and lagged values of TA showed a positive correlation with the current and lagged values of international TA. Moreover, the findings of the study confirmed, through Granger causality, the bidirectional causality between tourism, GDP, haze pollution such as PM2.5 and CO2 emissions and REER in the USA.
Citation: Tourism Economics
PubDate: 2022-05-12T01:26:51Z
DOI: 10.1177/13548166221097021
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- How to better incorporate geographic variation in Airbnb price
modeling'-
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Authors: Yifei Jiang, Honglei Zhang, Xianting Cao, Ge Wei, Yang Yang
Abstract: Tourism Economics, Ahead of Print.
Since entering the Chinese market in 2015, Airbnb has become a major player in the Chinese home-sharing arena. This article uses data from 8012 active Airbnb listings in Shanghai and presents three models (linear regression, geographically weighted regression, and random forest) to study the determinants of Airbnb listing prices and incorporate geographic variation in price modeling. Results show that property quality plays a key role in shaping listing prices. Due to Airbnb’s distinctions from traditional lodging in both features and business models, Airbnb pricing determinants differ accordingly. For example, location conditions were found to have a limited impact in regions with established transportation networks. Among the three models, random forest performed best in terms of prediction accuracy. Lastly, practical implications are discussed.
Citation: Tourism Economics
PubDate: 2022-05-05T04:10:37Z
DOI: 10.1177/13548166221097585
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- The impacts of domestic and global economic policy uncertainties on the
hotel room demand: Evidence from Singapore-
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Authors: Chew Ging Lee, Shi-Min How
Abstract: Tourism Economics, Ahead of Print.
Applying cointegration analysis on the monthly data of Singapore, this research note examines the impacts of global economic policy uncertainty (GEPU) and domestic economic policy uncertainty (DEPU) on the hotel room demand. Although control variables, such as average room rates, industrial production index and international tourist arrivals, are used and the specific-to-general modelling is adopted, the results show that the standard diagnostic tests may be incapable of identifying possible model mis-specification. The main findings show that DEPU has a negative impact, but GEPU has a positive impact on the hotel room demand. DEPU is linked to the political instability of Singapore, which discourages international travellers to visit Singapore. GEPU enhances Singapore’s position as a stable business and financial hub in relation to others and thereby increases business travel.
Citation: Tourism Economics
PubDate: 2022-05-03T03:21:22Z
DOI: 10.1177/13548166221086062
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- A simultaneous valuation model on positive and negative tourism benefits
under suppressed consumption-
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Authors: Tadahiro Okuyama
Abstract: Tourism Economics, Ahead of Print.
This study aims to develop a benefit valuation model with household production under consumption suppressed by self-restraint, as observed during the coronavirus disease 2019 pandemic. This study proposes a model to measure the benefits of the value of time (VOT), value of environmental quality (VOQ), and value of self-restrained consumption (VOS). Numerical simulations show that 1) the benefits can be measured in a single modeling system, 2) the absolute VOS might be larger than the other benefits, 3) the VOS decreases exponentially with an increase in self-restrained consumption, and 4) the VOT may be sensitive to the degrees of the parameter values.
Citation: Tourism Economics
PubDate: 2022-05-02T04:33:04Z
DOI: 10.1177/13548166221098321
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- Retirement and household tourism consumption—A case study in China
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Authors: Taotao Deng, Weishu Zhao, Yukun Hu
Abstract: Tourism Economics, Ahead of Print.
To date there has been little agreement on the effect of retirement on tourism consumption, and “retirement-tourism consumption puzzle” has not been empirically tested. Taking advantage of the mandatory retirement policy in China, this study adopts the fuzzy regression discontinuity design (RDD) approach to examine whether there is a “retirement-tourism consumption puzzle.” The findings indicate that the retirement of household heads significantly boosts household tourism consumption. The results also illustrate the considerable moderating effects of self-assessed health level and pension level on household tourism consumption. The research framework can be generalized to other countries to identify the effect of retirement on tourism consumption.
Citation: Tourism Economics
PubDate: 2022-04-28T11:29:52Z
DOI: 10.1177/13548166221090170
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- Chase for lucky numbers and take positive actions
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Authors: Peng Luo, Yukuan Xu, Rob Law
Abstract: Tourism Economics, Ahead of Print.
Number 8 is regarded as a lucky number in Chinese culture and is preferred over other numbers, especially in financial and retail market. To explore the impact of lucky numbers in room prices, we collect data from a room-sharing platform (Mayi) in China. The results indicate that a room with the lucky number in its price receives more bookings and higher customer ratings than other rooms without that price feature. Moreover, a host setting price with the lucky number 8 will receive more positive ratings. This study contributes to the existing literature and provides practical insights for room hosts and operators in room-sharing platforms.
Citation: Tourism Economics
PubDate: 2022-04-26T05:26:06Z
DOI: 10.1177/13548166221095793
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- Labour market regulations and efficiency in tourism industry
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Authors: Emmanuel Mamatzakis, Panagiotis Pegkas, Christos Staikouras
Abstract: Tourism Economics, Ahead of Print.
This study examines the effect of the labour market regulations on Greek tourism industry performance. The tourism industry, the steam engine of the Greek economy, always drives to enhance efforts to reach further savings in operating costs. However, the labour regulations that influence the tourism sector’s ability to adjust costs have not been thoroughly investigated. We present a novel methodology that permits the evaluation of the effect of labour market regulations on technical and allocative efficiency in one step. The empirical results demonstrate the complexity of the relationship between labour regulations and efficiency. Labour market liberalization is associated with improvements in allocative efficiency but may have opposite effects on technical efficiency. Policymakers should pay attention to these complicated interactions when planning reforms on labour market.JEL codes: D24, D61, J30, J80, Z30
Citation: Tourism Economics
PubDate: 2022-04-18T06:27:54Z
DOI: 10.1177/13548166221081522
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- Last chance to travel or safety first' The influence of exposure to
natural hazards and coping capacities on tourism consumption-
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Authors: Canh P Nguyen
Abstract: Tourism Economics, Ahead of Print.
The literature shows that natural disasters adversely affect international (arrivals) tourism. However, there seems to have been a lack of consideration of the dynamics of domestic and outbound (departure) tourism consumption in respect of natural hazards. To address this gap, this study uses a unique dataset of exposure to natural hazards and coping capacities for a global sample of 145 economies from 2011 to 2019 to examine the influence on domestic, outbound and total tourism spending. Exposure appears to have inverted U-shaped relationships with domestic and total tourism spending, and a U-shaped relationship with outbound spending. Coping capacities, in contrast, have U-shaped relationships with domestic and total tourism spending, with an inverted U-shaped relationship with outbound spending. Lastly, the analyses for four income groups and seven regions show some heteroscedasticity. The findings suggest that governments should build coping capacities for the recovery of tourism after disaster events.JEL codes: Z32, Z38, Q01, Q54
Citation: Tourism Economics
PubDate: 2022-03-29T10:05:45Z
DOI: 10.1177/13548166221077648
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- Travel and tourism competitiveness index and the tourism sector
development-
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Authors: Ali Uyar, Cemil Kuzey, Mehmet Ali Koseoglu, Abdullah S Karaman
Abstract: Tourism Economics, Ahead of Print.
The objective of this study is to test whether Travel and Tourism Competitiveness Index (TTCI) enhances tourism sector development in terms of tourist arrivals, tourism receipts, and the change in both tourist arrivals and tourism receipts. The results found that TTCI main index (Level 1) is positively associated with tourist arrivals but not tourism receipts and the change in tourist arrivals and tourism receipts. Further analysis (Level 2) reveals that while the T&T policy and enabling conditions index is positively associated with tourist arrivals, the infrastructure index is positively associated with tourism receipts. None of the Level 2 indices drives the change in tourist arrivals and tourism receipts. Among results obtained from Level 3 sub-indices, while price competitiveness, air transportation infrastructure, and cultural resources indices have a positive association with tourist arrivals, only ground and port infrastructure have a positive association with tourism receipts. Moreover, while safety and security, human resources and labor market, and air transportation infrastructure sub-indices drive a positive change in tourist arrivals, ICT readiness and natural resources drive a negative change in tourist arrivals and none of the sub-indices drives a change in tourism receipts. The study suggests several practical implications for tourism firms and policymakers.
Citation: Tourism Economics
PubDate: 2022-03-28T10:08:31Z
DOI: 10.1177/13548166221080357
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- The contagion effect of COVID-19-induced uncertainty on US tourism sector:
Evidence from time-varying granger causality test-
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Authors: Oguzhan Cepni, Tarik Dogru, Ozgur Ozdemir
Abstract: Tourism Economics, Ahead of Print.
This study investigates the effect of COVID-19-induced uncertainty on the overall stock market and the stock performance of the tourism and hospitality industry and its subsectors utilizing a novel time-varying robust Granger causality test. The results show that the COVID-19 pandemic–induced uncertainty has an adverse impact on the overall economy, tourism and hospitality industry, and subsectors of tourism and hospitality. However, the impact of COVID-19 pandemic–induced uncertainty is more significant in the tourism and hospitality industry and its subsectors. In particular, hotels sector has experienced the largest impact from the COVID-19 pandemic, followed by restaurants and airline sectors, respectively. Research and practical implications are discussed.JEL Classification: C1, C5, F2, G11, G17, G41
Citation: Tourism Economics
PubDate: 2022-03-27T04:02:33Z
DOI: 10.1177/13548166221077633
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- Does World Heritage inscription promote regional tourism' Evidence
from China-
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Authors: Cheng Zhang, Wei Cheng, Wanli Zhang
Abstract: Tourism Economics, Ahead of Print.
Using the panel data from 2002 to 2018 of 287 prefecture-level cities in China and the propensity score matching–difference-in-differences method, our study sought to reexamine the effect of World Heritage inscription on regional tourism. The results show that World Heritage sites improve regional tourism significantly, further confirmed by a series of robustness tests. However, the arrival and revenue effects of World Heritage inscription on inbound tourism are not significant. Moreover, World Heritage sites generate significant tourism economic benefits for the eastern and western regions in China but not for the central region. Last, a mechanism analysis shows that tourism public services increase the arrival and revenue effects significantly. The conclusions provide important insights for governments and tourism operators regarding the sustainable development of World Heritage sites and regional tourism.
Citation: Tourism Economics
PubDate: 2022-03-23T05:13:18Z
DOI: 10.1177/13548166221075453
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- Assessing the ability of regions to attract foreign tourists: The case of
Italy-
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Authors: Bernardina Algieri, Antonio Álvarez
Abstract: Tourism Economics, Ahead of Print.
This study examines the ability of Italian regions to attract foreign tourists and the factors influencing the choice of regional destinations using a novel Stochastic Frontier Demand Model. The results show that several factors including climate, seasonality, cultural heritage and infrastructures influence tourism performance. Easy accessibility to World Heritage Sites drives international tourism demand too. On average, Southern regions lie below the stochastic frontier and are inefficient, while Northern regions tend to be efficient. Calabria, Sardinia and Molise have a low ability to entice foreign tourists, while Veneto maximizes the number of tourist arrivals, overnight stays and expenditures.JEL Classification: C51; R11; Z32.
Citation: Tourism Economics
PubDate: 2022-03-05T03:59:40Z
DOI: 10.1177/13548166211068669
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- Can tourism market diversification mitigate the adverse effects of a
blockade on tourism' Evidence from Qatar-
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Authors: Ghialy Yap, Shrabani Saha, Nelson O Ndubisi, Saif S Alsowaidi, Ali S Saleh
Abstract: Tourism Economics, Ahead of Print.
This study examines the effects of an unfavorable political event or environmental hostility, namely, a blockade affecting international tourist inflows, and how tourism market diversification (TMD) could mitigate the adverse effects in the case of Qatar. To quantify these effects, we adopted a standard tourism-demand model and augmented it with a Herfindahl index (HI) for the geographical diversification of tourism exports, a dummy variable for the blockade, and an interaction variable. We further analyzed the tourist inflows from various regions using regional dummies and their interaction terms to capture the different impacts of the blockade on Qatar’s inbound tourists from 46 source countries between 2006 and 2019. This study applied a panel-based differenced system-generalized method-of-moments estimation to reveal several interesting findings. First, there was a significant positive individual effect of TMD on inbound tourism. Second, during the blockade, Qatar witnessed growing tourist inflows from Asia and Australasia, the Americas, and Europe. However, the incident inevitably placed severe constraints on some tourist flows to Qatar, primarily from Middle Eastern and African countries. Moreover, although the HI has a positive impact on tourism growth, our study revealed that the interaction terms between the HI and the blockade are only statistically significant in some cases, implying that a diversification strategy cannot completely mitigate the harmful effects of a blockade on tourism due to the severity of blockade effect. Nevertheless, a TMD strategy appears to be successful at the individual level.
Citation: Tourism Economics
PubDate: 2022-03-03T06:39:50Z
DOI: 10.1177/13548166211070742
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- Does corporate social responsibility affect the institutional ownership of
firms in the hospitality and tourism industry'-
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Authors: Danielle Lyssimachou, Pawel Bilinski
Abstract: Tourism Economics, Ahead of Print.
As hospitality and tourism (H&T) businesses mature, they often seek institutional equity financing to support their growth. Capital intensive H&T firms, such as cruise operators, casinos and large restaurant and hotel chains, continuously rely on institutional capital to fund their operations. This study examines which corporate social responsibility dimensions affect H&T firms’ ability to attract institutional equity capital providers. We document that firms with better social and governance performance have higher institutional ownership, particularly by investors focused on long-term growth and value creation, such as dedicated institutional investors, domestic investors and blockholders. Community and environmental performance do not increase institutional holdings.
Citation: Tourism Economics
PubDate: 2022-03-02T09:44:37Z
DOI: 10.1177/13548166211069899
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- Uneven domestic tourism demand in times of pandemic
-
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Authors: Martin Falk, Eva Hagsten, Xiang Lin
Abstract: Tourism Economics, Ahead of Print.
This study investigates the short-run impact of the COVID-19 pandemic on the number of domestic overnight stays at the regional level in the summer season 2020. Official data for 65 regions in four countries are used for the analysis (Austria, the Czech Republic, Germany and Switzerland). Dynamic panel data models are employed to estimate a tourism demand equation (real GDP and price fluctuations) augmented by average temperatures. Estimation results reveal that domestic overnight stays evolve unevenly in the first summer after the outbreak of the COVID-19 pandemic. The short-run effects show that the number of domestic overnight stays in densely populated regions decreases by 27% in July as well as in August 2020, in comparison with the same months in previous years, ceteris paribus. To the contrary, there is a surge of 27 and 10%, respectively, for sparsely populated areas in the same months.JEL: Z3, R11 and R12.
Citation: Tourism Economics
PubDate: 2022-03-02T05:45:18Z
DOI: 10.1177/13548166211059409
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- Impacts of red tide in peer-to-peer accommodations: A multi-regional
input-output model-
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Authors: João-Pedro Ferreira, Bijeta Bijen Saha, Gabriel Cardoso Carrero, Jinwon Kim, Christa Court
Abstract: Tourism Economics, Ahead of Print.
Increases in the incidence or severity of hazard events significantly alter the attractiveness of tourism destinations and tourism inflow. In 2018, a significant red tide event limited access to marine and coastal areas in Florida, heavily impacting the tourist sector. The purpose of this study was to estimate the economic impacts of red tides in the state economy through the shock in the Airbnb market. We combined microdata on Airbnb properties and water sample records and estimated that water sample indicating the presence of red tide conditions within a county decreases the average daily rate price of Airbnb rentals by $0.45 and the number of reservation days by 345. This event generated $317 million in sales revenue losses and resulted in the loss of nearly 2900 job-years throughout Florida. Knowledge of such consequences is essential to inform decision-making processes for policy makers and tourism management professionals.
Citation: Tourism Economics
PubDate: 2022-03-02T04:22:24Z
DOI: 10.1177/13548166211068276
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- Economic policy uncertainty and international tourist arrivals: A
disaggregated analysis of the Croatian Adriatic coast-
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Authors: James E Payne, Saban Nazlioglu, Andrea Mervar
Abstract: Tourism Economics, Ahead of Print.
This is the first study to examine the differential impact of Croatian and European economic policy uncertainty indices while controlling for the real effective exchange rate and industrial production on international tourist arrivals for the seven coastal counties of Croatia and the country as a whole. The Toda-Yamamoto long-run causality modeling approach with a Fourier approximation is employed to capture structural shifts. This approach is particularly useful in light of the disruption from the COVID-19 pandemic on the tourism sector. The results show unidirectional causality from both Croatian and European economic policy uncertainty indices to international tourist arrivals with the impact of the economic policy uncertainty indices negative and statistically significant across the respective coastal counties. Moreover, the findings show that European economic policy uncertainty exhibits a greater adverse impact on international tourist arrivals relative to Croatian economic policy uncertainty.JEL Codes: C30; Z30; Z32; Z38
Citation: Tourism Economics
PubDate: 2022-03-01T09:23:50Z
DOI: 10.1177/13548166221078807
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- Optimum spatial scale of regional tourism cooperation based on spillover
effects in tourism flows-
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Authors: Nina Zhu, Gang Zeng, Xue Li, Zhangqi Zhong
Abstract: Tourism Economics, Ahead of Print.
This research investigates the optimum spatial scale of regional tourism cooperation based on the tourism flows spillover in Mainland China. Using panel data from 341 prefecture-level cities in Mainland China, spatial econometric modeling is employed to estimate the spillover effects to determine the optimum spatial scale of regional tourism cooperation. The findings reveal that there are spatial correlations of tourism flow. In addition, tourism economic fundamental factor, surrounding market factor, tourism transportation facility factor, and tourist attraction factors have a positive and significant impact not only on local tourism flows but also on the surrounding areas. Finally, it is found that the optimum spatial scale of the regional tourism cooperation in Mainland China is [5, 15] cities, whereas for the eastern, western, southern, and northern regions, the optimum scale of the regional tourism cooperation is [5, 21], [5, 26], [5, 26], and [5, 11] cities, respectively.
Citation: Tourism Economics
PubDate: 2022-02-28T02:28:03Z
DOI: 10.1177/13548166211052810
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- Chinese consumer confidence: A catalyst for the outbound tourism
expenditure'-
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Authors: Chi-Wei Su, Xian-Li Meng, Ran Tao, Muhammad Umar
Abstract: Tourism Economics, Ahead of Print.
This study performs the bootstrap full- and sub-sample rolling-window Granger causality tests, in order to investigate the time-varying causal relationship between the consumer confidence index (CCI) and the outbound tourism expenditure (OTM) in China. For this purpose, it introduces the variable of consumer confidence as a subjective psychological perception variable into the gravity model and explores its impact on the outbound travel. The results reveal that CCI tends to exert positive impacts on the OTM in most subsamples. That is to say that the Chinese consumer confidence can be considered as a catalyst for the OTM. However, the impact tends to be negative during times such as the global financial crisis, caused by the appreciation in the renminbi. In turn, OTM does not affect CCI. This suggests that the only change of private expenditure on outbound tourism cannot alter consumer confidence regarding the current economic and income situation. These findings compel the foreign tourism authorities to take CCI into account, especially when predicating the tourism arrivals from China, and hence plan their tourism strategy accordingly. Also, Chinese travel agencies should ideally take notice of the CCI in order to plan their international tour packages.
Citation: Tourism Economics
PubDate: 2022-02-28T02:08:30Z
DOI: 10.1177/13548166211065250
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- Recreational travel behavior and COVID-19: Insights from expected utility
and the theory of planned behavior-
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Authors: Kehinde E Ojo, Susana Ferreira, John Bergstrom, John Salazar, Kyle Maurice Woosnam
Abstract: Tourism Economics, Ahead of Print.
Understanding what factors play a role in people’s decisions to travel during a pandemic is important to public health officials and to stakeholders in the travel and tourism industry in the United States (US) and worldwide. This study examines factors influencing people’s decisions to cancel/postpone recreational travel within the US amidst the COVID-19 pandemic. Our conceptual framework extends the Expected Utility model, commonly used in economics to model decisions under risk and uncertainty, to incorporate subjective norms and perceived behavioral control from the Theory of Planned Behavior. Our results suggest that risk perceptions, subjective norms, and concerns over transmitting COVID-19 to others play a significant role in the decision to cancel and postpone recreational travel. Results also suggest that perceived behavioral control may be less relevant to travel decisions when traveling involves elevated health risks.
Citation: Tourism Economics
PubDate: 2022-02-22T04:18:10Z
DOI: 10.1177/13548166211059642
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- The economic implications of the COVID-19 outbreak on tourism industry:
Empirical evidence from Turkey-
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Authors: Emrah Koçak, Tarik Dogru, Khurram Shehzad, Umit Bulut
Abstract: Tourism Economics, Ahead of Print.
The novel coronavirus (COVID-19) pandemic has caused tremendous fear and uncertainty and affected health, economy, and social life in an unprecedented form worldwide. Yet, the level of knowledge on its economic implications is very limited. Therefore, it is of paramount importance to explain the health, social, and economic impacts of COVID-19. Because the tourism is one of the most affected industries by the pandemic, this study aims to explain the effects of COVID-19 cases and deaths, global fear, and government responses on Turkey’s tourism industry. Empirical findings show that the tourism industry reacts negatively to new cases, number of deaths, and global fear measures. Also, government containment and health measures and economic supports positively affect the tourism industry. Furthermore, government stringency policies drive down the tourism industry’s performance. The findings of this study provide significant implications for tourism and travel firms, policy makers, and future research.
Citation: Tourism Economics
PubDate: 2022-02-11T02:51:16Z
DOI: 10.1177/13548166211067188
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- Modeling censored tourism expenditures in Turkey with non-normal and
heteroscedastic errors: An application of the inverse hyperbolic sine
double-hurdle model-
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Authors: Faruk Urak, Nihat Küçük, Abdulbaki Bilgiç, Steven T Yen
Abstract: Tourism Economics, Ahead of Print.
Censoring, extreme values, and non-normal distribution are common features in microdata. These data features can compromise the statistical distributions of the estimators when an appropriate model is not used. We use an inverse hyperbolic sine (IHS) transformation in the double-hurdle (DH) model to accommodate extreme values and skewness in censored accommodation spending among Turkish households. The full-parameterized model nests many restricted specifications which do not accommodate dependence, heteroscedasticity, and non-normality in the error terms. Statistical test results support the use of the fully parameterized dependent IHS-DH specification. The statistically significant correlation between the binary and level decisions of accommodation precludes the use of a model with a two-step structure. Some of the findings in our study have a determining or driving force in expressing causality relationship in monthly accommodation probability and level decisions. The study made also prudent policy recommendations about what the results might mean to policymakers and stakeholders.
Citation: Tourism Economics
PubDate: 2022-02-08T07:13:41Z
DOI: 10.1177/13548166211067191
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- Measuring hidden demand and price behavior from US outbound health tourism
spending-
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Authors: Jorge Ridderstaat
Abstract: Tourism Economics, Ahead of Print.
The health tourism literature has covered several topics, but studies on the workings of health tourism demand and prices are still under-highlighted. This study investigates US outbound health tourism demand and price developments (real exchange rates) for 50 destinations, using outbound health tourism spending as a reference variable. The study applies the dynamic time warping approach, a sophisticated technique to assess similarities between time series, specifically, the outbound health spending with demand and prices. The results show that demand developments have similarities with US outbound health tourism spending in the short-run, with about 1.2% of all US outbound travelers being health tourists. Price developments have both long- and short-term similarities with outbound health tourism spending. The findings could help policy-makers in better managing the health tourism industry.
Citation: Tourism Economics
PubDate: 2022-02-08T05:50:39Z
DOI: 10.1177/13548166211067925
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- Building a system dynamics model to analyze scenarios of COVID-19
policymaking in tourism-dependent developing countries: A case study of
Cambodia-
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Authors: Shuangjin Li, Shuang Ma, Junyi Zhang
Abstract: Tourism Economics, Ahead of Print.
To control the COVID-19 pandemic, various policies have been implemented to restrict the mobility of people. Such policies, however, have resulted in huge damages to many economic sectors, especially the tourism sector and its auxiliary services. Focusing on Cambodia, this study presents a system dynamics (SD) model for assessing and selecting effective policy responses to contain the spread of COVID-19, while maintaining tourism development. Policies targeted in this study include international and domestic transportation bans, quarantine policy, tourist-centered protection measures, and enterprise-led protection measures. Two types of scenario analyses are conducted: one targets each policy separately and the other combines different policies. Among all scenarios, quarantine policy is evaluated to be the most effective policy as it balances the containment of the spread of COVID-19 and support for tourism development. This study provides a new way of guiding COVID-19 policymaking and exploring effective policies in the context of tourism.
Citation: Tourism Economics
PubDate: 2022-01-18T12:20:23Z
DOI: 10.1177/13548166211059080
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- Competition for domestic tourism in the COVID-19 pandemic: A
characterization using a contest model-
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Authors: Juan Antonio Duro, António Osório, Alejandro Perez-Laborda
Abstract: Tourism Economics, Ahead of Print.
The COVID-19 has caused a dramatic fall in international tourism demand. Destinations within countries have revised their promotion strategies, intensifying the competition for the domestic market, less affected by mobility restrictions. This paper proposes a contest theory model for characterizing this new context. Two types of destinations, coastal (sun and sand) and rural, compete for the existing demand in terms of promotion spending. The competition is driven by two main factors: the relative strategic advantage of each destination in the international and domestic markets and the strategic value given to each market. The pandemic has likely modified these factors, reducing the traditional advantage of coastal destinations and shifting the valuation towards the domestic market. According to the model, these changes may increase competition for the domestic market, with destinations rising promotion spending even in a context of reduced demand, which is consistent with the empirical evidence.
Citation: Tourism Economics
PubDate: 2022-01-17T11:53:29Z
DOI: 10.1177/13548166211049870
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- Clustering and hotel room prices in Dubai
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Authors: Mohammad Arzaghi, Ismail H Genc, Shaabana Naik
Abstract: Tourism Economics, Ahead of Print.
In this article, we study the influence of the room properties, hotel amenities, hotel location, and, more importantly, the characteristics of hotels in the surrounding area on the prices of hotel rooms. The effects of different determinants are estimated using the hedonic price model for a cross-section of 250 hotels in Dubai. In addition to the typical characteristics of hotels and hotel rooms such as hotel amenities, star rating, and room size, we include location-specific characteristics such as accessibility to public transportation, airport, and, more importantly, clustering variables to capture the effects of local competition and spillovers from surrounding hotels. Our results indicate significant and strong effects of accessibility to attractions, transportation, hotel’s star rating, and room size, as expected. Our estimations also indicate that local competition reduces the room price, and local quality spillover increases the room price, and both effects are predominantly limited to the hotel’s immediate surroundings. Our estimations indicate that having one more hotel in the immediate surroundings decreases the room price by about one percent, and an increase in the average quality of the hotels in the immediate surroundings by one star rating increases the room price by more than 20%.
Citation: Tourism Economics
PubDate: 2022-01-12T01:37:36Z
DOI: 10.1177/13548166211040931
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- How do prosperity and aspiration underlie leisure tourism expenditure
patterns'-
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Authors: Usamah F Alfarhan, Hossein Olya, Khaldoon Nusair
Abstract: Tourism Economics, Ahead of Print.
This research advances the current knowledge of tourism expenditure by adapting a new analytical approach to understand expenditure differentials along their conditional distributions, based on multiple segmentation criteria. Using data from survey and secondary sources, we approximate tourists’ required utilities via prosperity at their countries of residence, a macro-level criterion, and individual-travel aspirations, a micro-level criterion. Subsequently, expenditure differentials between more and less prosperous/aspired tourists are decomposed into two components. First, group differences in expenditure covariates that represent tourists’ relative consumption behaviors and, second, differences in the estimated returns to those covariates, measuring potential third-degree price discrimination. Our results guide policy makers in the tourism industry to develop pricing strategies capable of generating mark-ups within all viable segmentations.
Citation: Tourism Economics
PubDate: 2022-01-04T08:44:18Z
DOI: 10.1177/13548166211064215
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