IP Publishing Ltd
Vol 17 No 6 December 2011
1162 The Thea Sinclair Award for Journal Article Excellence, 2011
1165 Correcting for selectivity bias in the estimation of tourist spending surveys
1181 The use of Markov chains to estimate destination switching and market share
1197 An analysis of tourists’ expenditure on winter sports events through the Tobit censorate model
1219 When should a ski resort make snow?
1235 The economic impact of cultural events: the Umbria Jazz music festival
1257 An examination of US hotel segment strategy: diversified, concentrated or balanced?
1311 Impact of increasing gasoline prices on tourism travel patterns to a state park
1347 Macroeconomic factors influencing Malaysian tourism revenue, 2002–2008
1365 Research note: Tourism and economic growth in Latin American countries – further empirical evidence
1375 Research note: Tourism as a factor of growth – the case of Brazil
1385 Index to Volume 17, 2011
Title: Correcting for selectivity bias in the estimation of tourist spending surveys
Abstract: Focusing on a small tourist destination, this study investigates how the conventional design and administration of surveys of tourism expenditure can result in selectivity bias. The bias arises from the assumption that day and overnight visitors possess identical spending patterns, and thus can be surveyed with the same instrument. To remove such a bias, the authors apply a two-stage procedure to distinguish the expenditure decisions made by day visitors from those made by overnight visitors. The results suggest that conventional surveys potentially underestimate expenditures by day visitors and overestimate expenditures by overnight visitors.
Title: The use of Markov chains to estimate destination switching and market share
Abstract: The Markov chain model provides researchers and policy makers with a means to predict travellers’ choices of destination. This study predicts international tourist flows among three Asian countries and the USA, and provides a path for gauging the switching patterns of tourists from one country to another. Destination loyalty (hard core component) and the future market share for 2009 and 2010 were estimated. The findings provide necessary information to many interest groups, including government policy makers, travel companies, airline companies and researchers.
Title: An analysis of tourists’ expenditure on winter sports events through the Tobit censorate model
Abstract: This study analyses the economic impact of the Biathlon World Cup 2009 in Antholz- Anterselva. The survey concentrates on the immediate, direct and short-term additional revenue brought into the region by foreign sports event spectators. The authors first apply an expenditure- based segmentation technique to data collected during the event to separate respondents according to socio-demographic variables. Second, a Tobit analysis is applied to obtain an expenditure model that is useful in explaining the different determinants of trip expenditures by spectators of the event. The results reveal significant socio-demographic differences between the four expenditure groups. For instance, heavy spenders are composed mainly of mature tourists, arriving for the first time in medium-sized groups. Also, the most important factors in total expenditure are income level, the geographical origin of the spectator and the size of the travel group.
Title: When should a ski resort make snow?
Abstract: Snow-making is an expensive operation for a ski resort. However, many resorts would be unable to operate without man-made snow. Deciding when to make snow involves several uncertain factors, as well as significant strategic issues. First, the author describes the framework for this decision. Next, he proposes analytical modelling. Finally, he compares the proposed models to actual practice at several resorts and proposes further research. The author finds that actual practice at most ski resorts does not involve formal analytical methods. While the resorts consider many of the factors included in the models, the decision is generally not modelled explicitly. The use of the proposed analytical models could lead to a better under-standing of the factors involved in the snow-making decision, and thus to better service at a reduced cost.
Title: The economic impact of cultural events: the Umbria Jazz music festival
Abstract: This paper assesses the economic impact of a cultural event on a local economy. The event analysed is the Umbria Jazz music festival, which is held annually in July in the city of Perugia in Italy. The relevance of this case study concerns the methodological problems involved in estimating the number of visitors attracted by an event characterized by numerous free concerts. In addition, through the choice of the components of expenditure and the impact analysis model, the proposed approach represents an advanced synthesis of the paths which have been developing in the literature.
Title: An examination of US hotel segment strategy: diversified, concentrated or balanced?
Abstract: Segment diversification is a common strategy applied by hotel companies. According to previous research on the modern portfolio theory, a company can reduce risks and thus increase its value with more diversified operations. Such reasoning can certainly apply to the hotel industry in terms of its segment strategy. However, the findings are inconclusive. In particular, other literature argues for more concentrated rather than diversified operations. This study therefore examines the impacts of segment diversification on companies’ risk-adjusted performances among publicly traded US hotels. The results suggest that a moderate segment diversification strategy maximizes a company’s risk-adjusted performance.
Abstract: Hotels provide many different types of rooms in terms of capacity as well as quality to diversify their products. This paper examines the relationship of uncertain demand and product variety by using monthly operation data from international tourist hotels in Taiwan during 2007–2009. First, the authors apply the two-stage least squares (2SLS) and random-coefficients models to estimate the demand function in Taiwan’s international tourist hotel industry. They then examine the relationship between uncertain demand and product variety. The empirical results indicate that the market’s uncertain demand significantly induces the hotels to expand their product variety.
Abstract: Since the implementation of the Individual Visit Scheme (IVS), the number of tourists from the Chinese Mainland (CM) to Hong Kong (HK) has increased dramatically. These IVS tourists have huge consumption power and account for 50–70% of the total sales revenue of many HK fashion retailers. In this context, the authors explore the consumer attitudes and preferences of the IVS tourists. Based on a random sampling method involving over 2,000 CM tourists, a questionnaire survey was conducted. The findings show that IVS tourists have complex attitudes towards higher-end brands and their extended products. Moreover, statistically significant results are found in relation to: the comparison of HK consumers with IVS tourists; the analysis of gender attitudes; and the regional analysis. Company interviews have been conducted and specific managerial insights are presented.
Title: Impact of increasing gasoline prices on tourism travel patterns to a state park
Abstract: Because tourism and outdoor recreation are highly travel dependent, they are influenced by gasoline prices. Unstable and increasing gasoline prices can affect travel participation, and behavioural adaptations are likely to occur. This paper examines the impact of higher gasoline prices on park visitation and investigates the degree to which certain behavioural and socio-demographic variables mediate the direct impact of gasoline prices on travel decisions to visit a park. The study findings revealed that the influence of increasing gasoline prices on travel decisions was progressively intensified and mitigated by several behavioural variables.
Abstract: This study analyses the returns on human capital in the Spanish hospitality and travel agency industries across seven occupational categories by gender. It is motivated by evidence that there is great variation between jobs in this sector and that estimations of the rate of returns for each component of human capital for the entire sector may not be accurate. The main results indicate that the rates of return on human capital are lower in these industries for most occupations than in the private services sector. Given that differences in the returns on human capital components across occupational categories are statistically significant and large, then the relative weight of each segment within the aggregate may explain the results obtained in previous studies.
Title: Macroeconomic factors influencing Malaysian tourism revenue, 2002–2008
Abstract: The Malaysian tourism industry has flourished considerably over the years due to the growth of new tourist landmarks, together with its rich cultural heritage. The industry generated 6.78% of the total income from exports in 2008. This paper focuses on the dynamic relationship between macroeconomic factors and tourism revenue in Malaysia from January 2002 to December 2008. In this context, the authors investigate the presence of seasonal fluctuations in tourism revenue and examine the macroeconomic factors influencing the five top tourist-generating countries for Malaysia.
Title: Research note: Tourism and economic growth in Latin American countries – further empirical evidence
Abstract: Using panel data that span from 1990 to 2005, the authors investigate the impact of tourism on the economic growth of 18 heterogeneous Latin American countries within the framework of the conventional neoclassical growth model. Results from the empirical models show that revenues from the tourism industry contribute positively to both the current level and the growth rate of the per capita GDP of the countries in the region, as do investments in physical and human capital. The findings imply that Latin American economies may enhance their economic growth in the short run by strengthening their tourism industries strategically, while not neglecting the traditional sources of economic growth.
Title: Research note: Tourism as a factor of growth – the case of Brazil
Abstract: International tourism is recognized to contribute to long-run growth through a whole list of diverse channels. This belief that tourism can cause long-run growth is known in the literature as the ‘tourism-led growth hypothesis’. This case study of Brazil can be taken as a specific test for such a hypothesis. In the paper, two different econometric methodologies are applied to two distinct data sets, showing that the results are independent of either data or methodology. On the one hand, annual data from 1965 to 2007 for Brazil as a whole are used for a cointegration analysis to look for the existence of a long-run relationship among variables of economic growth, international tourism earnings and the real exchange rate. On the other hand, high-quality data for the 27 Brazilian states, though for a shorter period (from 1990 to 2005), enable the use of the dynamic panel data model proposed by Arellano and Bond (1991). The authors show that the long-run elasticities between real per capita GDP with respect to tourism receipts and the real rate of exchange are 0.13 and 0.30, respectively. Finally, they compare their results with those of similar studies.