Vol 21 No 5 October 2015
Abstract: In tourism and recreation management it is still common practice to apply traditional input– output (IO) economic impact models, despite their well-known limitations. In this study the authors analyse the usefulness of applying a non-linear input–output (NLIO) model, in which price-induced input substitution is accounted for. For large changes in final demand, a NLIO model is more useful than a traditional IO model, leading to higher or lower impacts. For small changes in final demand input substitution is less likely. In that case the application of the NLIO may lead to the same results as a traditional IO model. To analyse changes of subsidies, a traditional IO model is not an option. A more flexible model, such as the NLIO, is required. The NLIO model forces researchers to make choices about capacity constraints, factor mobility and the substitution elasticity, which can be difficult but create flexibility and allow for more realism.
Abstract: The objective of this paper is to portray the features of touristic services in Brazil, looking to identify similarities and differences among the regions of the country. To do so, two complementary techniques are applied: cluster analysis and shift-share. The main results indicate the existence of five tourism clusters in the country, the best of them (clusters 1 and 2) predominantly comprising touristic services located in the mesoregions of the South and Southeast of Brazil, notably the state of Rio de Janeiro. Furthermore, the mesoregions of the North of Ceará, the Agreste of Pernambuco, the North of Rio de Janeiro state, metropolitan Rio de Janeiro, central Rio de Janeiro state, Assis, Araraquara, Araçatuba and Distrito Federal have offered competitive and specialized touristic services, and all are part of clusters 1 and 2, which show the best results.
Abstract: This research estimates the economic impact of an increase in tourism to Kazakhstan as a result of the film Borat: Cultural Learnings of America for Make Benefit Glorious Nation of Kazakhstan, released in 2006. The film, controversial for its shock value, portrayed Kazakhstan in a negative light, yet raised awareness of the country as a tourist destination. Despite the negative depiction of Kazakhstan, international tourist expenditure increased by 6.4%. However, the increase in tourism was estimated to have an overall adverse effect on the economy. This adverse effect on the rest of the economy overshadowed the positive benefits of tourism.
Abstract: In Australia, as in many other parts of the world, open access is the default policy setting for most protected natural areas, including World Heritage Sites. This is despite considerable evidence that unrestrained levels of visitation can be unsustainable in terms of the impact on the environment and recreational experience. This paper seeks to answer two questions. First, to what extent are visitors willing to forego access to publicly owned protected natural areas in order to ensure less crowding and/or better environmental outcomes? And second, if access were restricted, how would visitors like remaining access rights to be allocated? The results show that visitors are, in general, willing to trade off some degree of access rights for better environmental outcomes and reduced crowding; particularly the former. It is clear that peak pricing is not supported, whereas visitor caps have broad support.
Abstract: The infrequency of purchase (IP) model was used to explore the impact of financial factors, limiting factors, social status and household life cycle on family travel intention and travel expenditure in Taiwan. The empirical results indicate that family travel intention and level of expenditure vary at different stages of the household life cycle. Additionally, family incomes, the education level of the head of the household, women’s employment and home ownership have significantly positive impacts on travel intention and level of expenditure. The findings also suggest that the presence of a family member’s health problems or the number of seniors over 65 years of age in a household will reduce travel intention and thus the level of travel expenditure.
Abstract: This paper empirically studies the role played by advertising on the price elasticity of lodging demand in the Taiwanese hotel industry. There are two theoretical views regarding the role of advertising. The persuasive view emphasizes that advertising creates brand royalty and reduces customers’ price sensitivity. By contrast, the presumptive view is that advertising lifts marginal consumers’ willingness to pay, flattens the demand curve and increases the equilibrium price elasticity. Using data from operation reports of Taiwanese international tourist hotels during 1995–2008, an ordinary least squares (OLS) analysis finds that advertising reduces consumers’ price sensitivity. However, the quantile regression results suggest that the change in price elasticity generated by advertising is of an unequal pattern. In other words, the influence of advertising on price elasticity exists but varies by the level of price elasticity. The authors also examine empirically the moderating influence of advertising on the pricing strategy–hotel performance link. The estimation results indicate that the interaction term of room rate and advertising expenditure has a positive effect on room revenue. The results lend some support to the view that advertising has a moderating influence on the relationship between hotel price and financial performance.
Abstract: This paper examines the short-run and long-run impacts of income and exchange rates on US exports and imports of tourism to improve understanding of the dynamic determinants of the US tourism trade balance. Using the bounds testing to cointegration procedure and data for the period 1960–2011, the paper finds that in the long run both US exports and imports of tourism are highly responsive to changes in real income, implying that the relative growth of foreign to domestic income is the key determinant of the US tourism trade balance. The real exchange rate is found to be a significant long-run factor affecting that balance. This finding indicates that an appreciation (depreciation) of US dollars deteriorates (improves) the US tourism trade balance. In the short run, income tends to have a significant impact on US exports and imports of tourism.
Abstract: The USA has developed a global reputation for providing high-quality, cutting-edge medical care, and individuals from across the world travel to the country to receive care for complex medical conditions. Beyond this goal of higher quality of care, however, very little is known about the motivational patterns influencing medical travellers’ decision making, including the extent to which existing tourism theory and forecasting models apply to this specialized group. The present study seeks to contribute to the knowledge base by developing and testing a macro-level model of international medical travel to the USA. Using country-level data from the US Department of Commerce, World Health Organization, World Bank and Central Intelligence Agency, a two-part regression analysis was used to assess factors associated with the presence and volume of inbound medical travel by country of origin. The results indicate that travel time and out-of-pocket healthcare expenditure are significant predictors of inbound medical tourism from a given country, and travel time, travel cost, services trade and the number of outbound travellers are significant predictors of the total volume of inbound medical travellers by country. The results are discussed in the light of existing tourism research, and guidance for hospitals, policy makers and the tourism industry is provided on where to target resources for developing relationships with providers and payers abroad.
Abstract: Despite the fact that charter flights have become a hybrid model between the low-cost carriers and the network carriers, the charter passenger’s profile presents important differences from those of the passengers of the other two types of airline. This article analyses those differences. The authors use a multinomial logit model and a broad database of almost 40,000 passengers. Their results break with certain stereotypical assumptions, such as that charter passengers are low-income, that they use the services of travel agencies to a greater degree, or that they show a clear bias for travel for vacation purposes. Their profile is of infrequent flyers with a longer waiting time before boarding, although this does not mean that they make more purchases at the airport. Furthermore, they look to travel to more remote destinations, with no intermediate stopovers, which are not usually served by the low-cost carriers, as a result of which they have a greater presence at hub airports.
Abstract: Very complicated so-called ‘survival’ (or duration) models have featured strongly in research aimed at explaining variation in tourists’ length of stay at destinations. In a constructive critique of this research, Thrane (2012) has shown that use of these models lacks sound footing on conceptual as well as statistical grounds. In recent studies, length of stay has been thought of as a count variable, and the variation in this variable has accordingly been modelled with count data regression models. The purpose of the present study is to provide a constructive critique of this research. There are two conclusions. First, count data regression models should be used when analysing ‘how-many-times- something-happened’ data. Consequently, these models are not ideal when the non-discrete dependent variable is length of stay measured in days. Second, since an OLS regression analysis on the natural log of length of stay yields the same results as a far more complicated count data regression model, the former is preferable on the principle of parsimony and with regard to reaching out to an audience not well acquainted with statistics.
Abstract: To date, studies on hotel energy use have examined the implications in terms of direct cost savings, environmental sustainability and corporate social responsibility. However, as the profitability of lodging firms is subject to changes in energy prices, their value may depend on exposure to energy price volatility. This paper examines the exposure of US lodging firms to energy price risk between 2001 and 2014. The authors find that energy price considerably affected stock returns of lodging firms throughout the sample period, and conclude that participation in an energy saving programme reduces the lodging firm’s stock return exposure to energy price risk, thereby enhancing firm value.
Abstract: The main goal of this study is to estimate the price and income elasticity of demand for tourism to Spain. This estimation is done separately for the major international source markets for Spain: Germany, the UK, Italy and the Netherlands. For this purpose, the authors use the autoregressive distributed lag (ARDL) approach to cointegration and the bootstrap method to construct empirical confidence intervals for each estimate. The results reveal that the tourism demand in all the countries studied has a similar income elasticity, which is approximately unitary. However, there is an important difference with regard to price elasticity: tourism demand from the UK is statistically price inelastic, but demand is elastic for the remaining countries. This finding is relevant because, first, it underlines the importance of studying the source markets separately instead of analysing an aggregate international tourism demand, and, second, it supports the need to implement different tourism policies and strategies with respect to the pricing decisions for each source market.
Abstract: This paper analyses tourism demand in the tourist districts in Sicily to study the relationship between the characteristics of tourists, types of tourism and expenditure. The data were obtained from a survey of tourists leaving the island after a holiday. The likelihood of choosing a type of holiday is estimated by means of a multinomial logistic model. The findings highlight the importance of the seaside, cultural, and food and wine/nature segments. The analysis of the distribution of per capita per day expenditure shows higher average values for the cultural holiday. The research provides insights for decision makers concerning the implementation of destination market strategies.
Abstract: This paper discusses the economic benefits of agritourism development, a topic in need of further research. Understanding the benefits of agritourism is especially important but empirical research on this matter remains limited. The results reported are based on a survey conducted among agritourism providers in Wielkopolskie Voivodeship, Poland. The findings show that agritourism can bring several economic benefits. It was found that the average income from agritourism accounted for about one-third of the overall household income of farmers. Moreover, food service is an important factor in the success of agritourism as it brings extra money to farmers. This research also identified an important relationship between the income obtained from agritourism activities only with the income obtained by providing meals to agritourists.