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The business and finance of tourism and recreation

ISSN 1354-8166 (print); 2044-0375 (online)


Editor: Stephen Wanhill,
Professor of Tourism Economics,
University of Limerick,
and Emeritus Professor of Tourism
Research, Bournemouth University

This journal is covered by Thomson Reuters in the Social Sciences Citation Index (SSCI) and Current Contents/Social and Behavioral Sciences. Impact Factor: 0.573. 5-Year Impact Factor: 0.901. (2013 Journal Citation Reports® Social Sciences Edition, Thomson Reuters, 2014.)

This journal is indexed in Scopus

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Editorial coverage

Tourism Economics, published quarterly, covers the business aspects of tourism in the wider context. It takes account of constraints on development, such as social and community interests and the sustainable use of tourism and recreation resources, and inputs into the production process. The definition of tourism used includes tourist trips taken for all purposes, embracing both stay and day visitors.

Articles address the components of the tourism product (accommodation; restaurants; merchandizing; attractions; transport; entertainment; tourist activities); and the economic organization of tourism at micro and macro levels (market structure; role of public/private sectors; community interests; strategic planning; marketing; finance; economic development).

Core subject areas:

  • forecasting
  • public policy (strategies, fiscal and other intervention policies)
  • economic development
  • market structures and competition
  • sources of capital provision
  • labour economics (quality and productivity issues)
  • business aspects of marketing
  • private and public sector interaction
  • economic appraisal at sector and project level
  • mathematical modelling
  • developments in the components of the product
  • structure of the tourism industry (including such issues as ownership, corporate size, international operations, etc)
  • regional economic effects of tourism developments
  • analysis of international data on tourism, such as WTO statistics

Submissions - Notes for authors

Please send papers, either by e-mail or post, to Professor Stephen Wanhill, c/o IP Publishing Ltd, 258 Belsize Road, London NW6 4BT, UK. Please note that e-mail submissions should be sent to JEdmondson(at)ippublishing.com (this address is obtainable by clicking on Professor Wanhill's name in the preceding sentence). Receipt of your paper will be acknowledged by e-mail and it will then be forwarded to Professor Wanhill.

Length and presentation of contributions

 Papers will normally be about 5,000 words long. However, this is by no means inflexible and substantially shorter or longer papers will be considered where appropriate. Research notes and shorter report-style pieces will also be considered (1,500-2,000 words).

Submissions should be double-spaced. They can be sent to the editor either by e-mail or post c/o the publisher (details above). The publisher will send an acknowledgement on receipt of submissions. Electronic versions must be in Word (postal submissions should include one hard copy and a disk or CD).

The title page should contain full names and addresses of the authors and their affiliations. As this page will not be forwarded to referees, the title of the article (without authors) should be repeated on the first page of the text.

An abstract should be provided, comprising 100-150 words. Between 3 and 6 keywords should appear below the abstract, highlighting the main topics of the paper. The text should be organized under appropriate cross-headings (not numbered paragraphs) and where possible these should be not more than 800 words apart.

References should follow the Harvard system. That is, they should be shown within the text as the author's surname (or authors' surnames) followed by a comma and the year of publication, all in round brackets: for example, (Smith, 1998). For textual citations, where there are two authors please use the word 'and', not the ampersand (thus: '(Smith and Jones, 2012)'. Where there are more than two authors, please use the first-named author only, followed by 'et al' in italics (thus: Smith et al, 2012). At the end of the article a bibliographical list should be supplied, organized alphabetically by author (surnames followed by initials - all authors should be named). Bibliographic information should be given in the order indicated by the following examples:

Articles: Figini, P., and Vici, L. (2010), ‘Tourism and growth in a cross section of countries’, Tourism Economics, Vol 16, No 4, December 2010.

Books: Dwyer, L., Forsyth, P., and Dwyer, W. (2010), Tourism Economics and Policy, Channel View, Bristol.

Notes should be numbered consecutively in the text and typed in plain text at the end of the paper (not as footnotes on text pages).

Tables and illustrations should be presented separately at the end of the text. Authors should bear in mind that, in the print version of the journal, illustrations will be reproduced in black and white.

Prior Publication

Articles are received on the understanding that they are original contributions, and have not been published officially, either in print or electronic form, or submitted for publication elsewhere. In this respect, ‘discussion’ or ‘working’ papers, conference presentations and proceedings are not considered to be official publications, unless they have been formally deemed so by conference organizers, or presented as edited works through recognized publishing channels. If in doubt, authors are asked to draw the attention of the Editor to any prior dissemination of the paper in their letter of submission. Please note that articles should not be posted on personal Websites or social networking sites before or after submission.

Refereeing

All papers, other than research notes and reports, will be subject to a 'double blind' review - i.e. the anonymity of both authors and referees will be maintained throughout the refereeing process. There will be a minimum of two referees for each paper. Papers by authors who are not academics (such as submissions from industry) will also be subject to review before acceptance, but their distinct nature and aims will be fully taken into account.

Copyright

Authors will be asked to assign copyright, where possible, to IP Publishing Ltd. Relevant authors’ rights are protected.

Author Checklist for Final versions

Editorial Board

Editor: Stephen Wanhill, Professor of Tourism Economics, University of Limerick, and Emeritus Professor of Tourism Research, Bournemouth University, c/o IP Publishing Ltd, 258 Belsize Road, London NW6 4BT, UK.

Special Advisers
  • Professor John Fletcher, International Centre for Tourism and Hospitality Research,
    Bournemouth University, UK
  • Professor William C. Gartner, Tourism Center,
    University of Minnesota, USA
  • Professor J. Mazanec, MODUL University
    Vienna, Austria
  • Professor Lindsay W. Turner, School of Applied Economics
    Victoria University, Australia

Editorial Advisory Board

  • Professor Eugeni Aguiló
    Universitat de les Illes Balears, Spain
  • Dr Albert Assaf
    University of Massachusetts-Amherst, USA
  • Professor Esteban Bardolet
    Universitat de les Illes Balears, Spain
  • Professor Carlos Pestana Barros
    Technical University of Lisbon, Portugal
  • Professor Eberhard Bischoff
    University of Wales Swansea, UK
  • Professor Juan Gabriel Brida
    Free University of Bolzano, Italy
  • Professor Nevenka Čavlek
    University of Zagreb, Croatia
  • Professor Jim Deegan
    University of Limerick, Ireland
  • Dr Sarath Divisekera
    Victoria University of Technology, Australia
  • Professor Larry Dwyer
    University of New South Wales, Australia
  • Professor Peter Forsyth
    Monash University, Australia
  • Professor D.C. Frechtling
    The George Washington University, USA
  • Dr Twan Huybers
    University of New South Wales, Australia
  • Dr Stanislav Ivanov
    International University College, Bulgaria
  • Professor Carson L. Jenkins
    University of Strathclyde, UK
  • Professor Woo Gon (Woody) Kim
    Florida State University, USA
  • Professor Brian King
    The Hong Kong Polytechnic University, Hong Kong
  • Professor Adele Ladkin
    Bournemouth University, UK
  • Dr Peter Morrell
    Cranfield University, UK
  • Professor Yasuo Ohe
    Chiba University, Japan
  • Professor Andrea Saayman
    North-West University, South Africa
  • Dr Mondher Sahli
    Victoria University of Wellington, New Zealand
  • Dr Neelu Seetaram
    Bournemouth University, UK
  • Professor Egon Smeral
    Austrian Institute of Economic Research and Modul University, Austria
  • Professor Haiyan Song
    Hong Kong Polytechnic University, Hong Kong SAR, PR China
  • Professor Natalie Stoeckl
    James Cook University, Australia
  • Dr Brian Terry
    Terry & Partners, UK
  • Professor John Westlake
    Prince of Songkla University, Thailand

Vol 20 No 4 August 2014

669 Does the investment climate determine the transformation of tourism growth into economic development?

Pablo Juan Cárdenas-García and Juan Ignacio Pulido- Fernández

695 Wage differentials and their determinants in US tourism and tourism- associated industries

Allan Webster

727 Intermediaries and quality uncertainty: evidence from the hotel industry

Aleix Calveras and Francina Orfila

757 Managing trade contacts in HotRest intermediate markets: a resource-based view analysis in EU countries

Maurizio Droli, Ting Fa Margherita Chang, Luca Iseppi and Livio Clemente Piccinini

779 Territory impact on the performance of Spanish vacation hotels

Bartolomé Marco-Lajara, Mercedes Úbeda-García, Vicente Sabater-Sempere and Francisco García- Lillo

797 Cost efficiency of Portuguese hotels in the Algarve: a comparative analysis using mathematical and econometric approaches

Ricardo Oliveira, Maria Isabel Pedro and Rui Cunha Marques

813 How deep are scuba divers’ pockets?

Melville Saayman and Andrea Saayman

831 Did 9/11 change the New York state of mind? Lessons from NYC’s leisure and hospitality labour market

Rebecca Lefebvre and Marcus Marktanner

849 Tourists’ evaluation of climate change risks in the Canary Islands: a heterogeneous response modelling approach

Carmelo J. León, Jorge E. Araña, Matías González and Javier De León

869 Research note: Corporate social responsibility and equity financing in the global tourism industry

Zhi-Yuan Feng, Ming-Long Wang and Hua-Wei Huang

885 Research note: Empirical assessment of the tourism-led growth hypothesis – the case of Vietnam

Nguyen Ho Minh Trang, Nguyen Huu Chau Duc and Nguyen Tien Dung

893 Research note: Seasonal preferences and survey design – tourism expenditure models with household budget surveys revisited

Joaquín Alegre and Llorenç Pou

901 Research note: Market disequilibrium effect on hotel prices

Chiang-Ming Chen and Hsien-Hung Chiu

911 Research note: Has international tourism promoted economic growth in China? A panel threshold regression approach

Taotao Deng, Mulan Ma and Shuai Shao

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Title: Does the investment climate determine the transformation of tourism growth into economic development?

Author(s): Pablo Juan Cárdenas-García and Juan Ignacio Pulido-Fernández

Abstract: Currently, there are opposing views concerning the capacity of economic growth resulting from the expansion of tourism activity to influence an increase in the level of a country’s economic development. In recent years a school of thought has been consolidating that there is no automatic relationship between the two, but that certain circumstances must occur in the structural foundations of a country for such a link to be made. The investment climate plays a decisive role in the economic development of a society. The aim of this paper is to identify, through a country-level empirical analysis, which specific factors related to the investment climate promote or hinder the transformation of tourism growth into an improvement of the living conditions of the population. The end result is that, in those countries with lower levels of development, the lack of an appropriate investment climate complicates this relationship (unlike in developed countries). Thus, continuing to invest in tourism in these countries without first solving the issues affecting the investment climate will lead to a failure of such investment.

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Title: Wage differentials and their determinants in US tourism and tourism-associated industries

Author(s): Allan Webster

Abstract: This paper examines variations in wages for tourism and tourism-associated industries in the USA for the period 2004–2009. It critically assesses the extent to which tourism and tourism-associated activities conform to their low-wage stereotype and finds this to be true in general, but not universally. It then considers the possibility that wages in US tourism and tourism-associated industries can be explained by observable characteristics of these industries. Recent research suggests that the use of wage data at the level of highly detailed occupations is an effective alternative to other ways of capturing underlying skill differences. Accordingly, data from the US Occupational Employment Statistics (OES) were used to provide this detail. The results strongly support the importance of difference in wages between occupations in understanding differences between industries. They also support the importance of a number of industry characteristics, including profitability, multi-factor productivity and demand growth. The paper also considers the relevance of an industry wage premium or discount for tourism and tourism-associated activities in the USA over the same period. It estimates an industry wage model separately for five individual occupations across all industries that employ for the occupation concerned. The analysis shows that workers in the two more highly paid occupations exhibit evidence of a tourism and tourism-associated discount but that workers in the three more lowly paid occupations exhibit a tourism and tourism-associated wage premium.

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Title: Intermediaries and quality uncertainty: evidence from the hotel industry

Author(s): Aleix Calveras and Francina Orfila

Abstract: The authors study and test one of the possible organizational solutions to the problem of asymmetric information between sellers and buyers: sellers (firms) use intermediaries’ reputations instead of their own as a way to provide credible information to potential buyers concerning the true quality of their product. More specifically, the authors test the role of intermediaries in the hotel industry as providers of reputation regarding the true quality of a hotel establishment. The empirical results support their hypotheses by showing that reliance on an intermediary (a tour operator and a travel agency) in the distribution of the capacity of accommodation of a hotel establishment is: (i) higher for high-quality hotels (which face more acute problems from asymmetric information); and (ii) lower for establishments belonging to large and reputable hotel chains (which are themselves capable of building their own reputation and brand name).

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Title: Managing trade contacts in HotRest intermediate markets: a resource-based view analysis in EU countries

Author(s): Maurizio Droli, Ting Fa Margherita Chang, Luca Iseppi and Livio Clemente Piccinini

Abstract: Trade contacts in the intermediate market, or intermediate trade contacts (ITC), are transactional capital resources. They are measured by business-to-business purchases or sales. The objective of this work is to evaluate the impact of ITC sales on the sustained competitive advantage of hotels and restaurants, ‘HotRests’, in EU countries. In a resource-based view framework, only valuable (above-normal) and rare (concentrated) ITC become relevant. Using EU input–output tables and applying the supply-driven model, the relationships between the multiplier and the valuable and rare resources are identified. The main finding is that ‘HotRests’ have the opportunity to manage their business-to-business relationships as a resource asset-flow to speed up innovation processes and defend their competitive advantage.

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Title: Territory impact on the performance of Spanish vacation hotels

Author(s): Bartolomé Marco-Lajara, Mercedes Úbeda-García, Vicente Sabater-Sempere and Francisco García-Lillo

Abstract: Although Spain is among the world’s most visited tourist destinations, not all Spanish regions receive the same flow or number of tourists, and the type of visitor varies from one region to another. This paper analyses the structure of the tourism industry across the six most important tourist regions in Spain. Its main aim is to identify the most relevant factors for each of these regions, explaining the differences between them not only in terms of the number of tourists they receive but also in terms of tourist behaviour. The authors select two theoretical models empirically validated in previous studies: Porter’s Diamond model, which helps to explain why the tourism industry is more competitive in some Spanish regions than in others, and the theory of tourist districts, which clarifies why the tourism industry tends to develop in very specific geographical areas.

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Title: Cost efficiency of Portuguese hotels in the Algarve: a comparative analysis using mathematical and econometric approaches

Author(s): Ricardo Oliveira, Maria Isabel Pedro and Rui Cunha Marques

Abstract: A sample of 28 prestige hotels on the Algarve (Portugal) is analysed to compare the results of the data envelopment analysis and stochastic frontier approach techniques in order to measure cost, allocative and technical efficiencies. The results suggest that efficiencies are similar when they are calculated by these two models. Companies with five-star hotels, hotels with golf courses and owners of only one hotel have higher efficiency levels than their peers. One explanation for this evidence is that these models express themselves through cost or production technologies, allowing them a better fit.

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Title: How deep are scuba divers’ pockets?

Author(s): Melville Saayman and Andrea Saayman

Abstract: More than 60,000 divers annually visit Sodwana Bay in KwaZulu-Natal, South Africa, one of the world’s top diving sites. A survey was conducted during March and April 2012 to identify factors that influence the spending behaviour of divers. Data from 402 questionnaires provided information about spending per person, socio-demographic profile, diving behaviour and motives, and environmental awareness. A quantile regression approach was used to analyse the determinants of spending. The inclusion of environmental awareness as a factor that might influence spending behaviour is an advance on previous studies of determinants of spending, and this factor was found to increase spending significantly. Knowledge about the relationship between environmental awareness and spending could be valuable for policy aimed at both economic and ecological sustainability.

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Title: Did 9/11 change the New York state of mind? Lessons from NYC’s leisure and hospitality labour market

Author(s): Rebecca Lefebvre and Marcus Marktanner

Abstract: The authors show that the terrorist attacks of September 11, 2001 caused a permanent structural break in NYC’s leisure and hospitality labour market. This structural break is visible from both an interrupted time-series perspective and a comparison with NYC’s overall economic development. Assuming that the labour market dynamics of the leisure and hospitality industry mirror a city’s feel in the hedonism–asceticism spectrum, the authors conclude that the 9/11 terrorist attacks have permanently shifted ‘New York’s state of mind’ from hedonism towards asceticism. These results suggest that greater attention must be given to the formulation of effective industry marketing strategies in response to the legacy of urban terrorism.

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Title: Tourists’ evaluation of climate change risks in the Canary Islands: a heterogeneous response modelling approach

Author(s): Carmelo J. León, Jorge E. Araña, Matías González and Javier De León

Abstract: This paper compares the differences between the monetary measures of willingness to accept and willingness to pay (WTP) for changes in climate change risk. The empirical evidence comes from tourists in the Canary Islands. The modelling approach utilizes a Bayesian mixture of normal distribution model that allows the authors to consider heterogeneity across both WTP and willingness to accept (WTA) question formats. The results show that the WTP for lower risks is lower than the WTA higher risks, and that the disparity between these measures depends on the market segments, the specific climate change risk and the characteristics of the individuals.

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Title: Research note: Corporate social responsibility and equity financing in the global tourism industry

Author(s): Zhi-Yuan Feng, Ming-Long Wang and Hua-Wei Huang

Abstract: This paper examines whether the performance of corporate social responsibility (CSR) affects the cost of equity capital for the tourism industry, and whether there are any regional and cultural differences in this respect. Using data from a global sample of tourism-related firms, the authors find that, on average, CSR performance is associated with a lower cost of equity for firms in Western countries, but not for firms in Asian countries. The results suggest that there are different concerns with regard to CSR investment for tourism-related firms in different regions, due to the variations in investors’ perceptions, culture, institutional environment and managerial beliefs.

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Title: Research note: Empirical assessment of the tourism-led growth hypothesis – the case of Vietnam

Author(s): Nguyen Ho Minh Trang, Nguyen Huu Chau Duc and Nguyen Tien Dung

Abstract: This study examines the tourism-led growth hypothesis (TLGH) in Vietnam during the period 1992–2011. The authors use two-step procedures to test the hypothesis. They first apply cointegration and the Granger causality test to identify the relationships between tourism earning and gross domestic product (GDP). Second, they use growth decomposition methodology to measure the contribution of tourism to economic growth. The results indicate that it is worthwhile for the government to implement economic policies to stimulate economic growth through the tourism sector in Vietnam.

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Title: Research note: Seasonal preferences and survey design – tourism expenditure models with household budget surveys revisited

Author(s): Joaquín Alegre and Llorenç Pou

Abstract: There is an increasing strand of literature on tourism expenditure which draws microdata from national household budget surveys (HBS). In this paper the authors discuss the fact that, owing to tourists’ seasonal preferences, papers based on HBS that do not use spending information covering the whole year for each household are seasonally biased. The authors show that this bias occurs as a result of either the design of the HBS or inadequate treatment of the data by researchers. When the bias occurs, tourism expenditure estimates are misleading. Analysing the issue in detail, the authors argue that it underestimates the participation rate and exerts a downward bias on income elasticity values. These hypotheses are tested empirically with Spanish microdata, showing that the seasonal bias severely affects the results obtained. In this regard, previous literature on tourism expenditure affected by this seasonal bias should be revisited.

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Title: Research note: Market disequilibrium effect on hotel prices

Author(s): Chiang-Ming Chen and Hsien-Hung Chiu

Abstract: The authors reformulate the hedonic price approach by taking into account market disequilibrium in the hotel market. In the reformulated model, the imbalance between room supply and demand is incorporated into the hedonic price function. The hedonic price function for a hotel facing market disequilibrium is then estimated using data from a national panel of international tourist hotels in Taiwan during the period 1996–2008. They find that market disequilibrium has a positive and significant effect on room rates of tourist hotels in Taiwan; that is, an increase in excess demand may significantly raise the room rates. The effects of other physical attributes of hotels on room rates are also discussed.

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Title: Research note: Has international tourism promoted economic growth in China? A panel threshold regression approach

Author(s): Taotao Deng, Mulan Ma and Shuai Shao

Abstract: The authors confirm a non-monotonic relationship between international tourism and economic growth, using China’s province-level panel data from 1987 to 2010. Two endogenous cut-off points of the efficiency of international tourism in economic growth are identified. When the degree of tourism specialization is lower than 1.80% or between 1.80% and 2.04%, international tourism has a significant positive impact on economic growth, but the magnitude of the impact is weaker in the latter case. When the degree of tourism specialization exceeds 2.04%, an insignificant negative relationship between tourism and economic growth emerges. This suggests that tourism-led economic growth may not be sustained at high levels of tourism specialization.

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