Vol 22 No 1 February 2016
Abstract: A review of the literature shows that the relationship between satisfaction and tourism expenditure, as well as the dependence among different tourist expenditure categories, are under- researched topics. The aim of this study is twofold: first, to investigate the influence on tourism expenditure of tourists’ satisfaction with the destination, correcting for the effect of some socio- demographic and trip-related variables; second, to study the dependence among tourist expenditure on the different tourist categories that create the overall expenditure for the trip. This study focuses on an analysis of the expenditure behaviour of a sample of international visitors who travelled in an area around the Dolomites in Northern Italy, adopting the double-hurdle model with the Heien and Wessells estimator. In discussing the results, policy implications and managerial issues for tourism destinations are presented.
Abstract: Statistical modelling of the variation in micro-level tourism expenditure is an ever- expanding topic of study. The present paper adds to this research by examining how and why foreign and domestic summer vacation trips incur cross-sectional differences in total trip expenditure for Norwegian households in the period 2009 to 2012. The paper also highlights how a number of other regressors explain variation in such expenditure. The main finding is that, in gross or unadjusted terms, Norwegian households spend more than three times as much on foreign summer trips as they do on domestic trips (that is, 225% more). In net or ceteris paribus terms, the analogue difference is 48%. Two important, but only partial explanations for the gross difference in total trip expenditure between foreign and domestic trips are choice of type of lodging and choice of transportation mode. Length of stay, purpose of trip, advance booking, frequency of vacation trips, age, income and gender all affect total trip expenditure. Whether the trip is foreign or domestic moderates the effects of some of the other regressors on total trip expenditure. Implications for future research are offered.
Abstract: Turkey occupies eighth place in the world for cave tourism. In recent years, the development of the cave tourism industry throughout the country and the emergence of its positive and negative impacts have attracted the interest of rural development experts, local managers and scholars. Most research is related to scientific studies in caverns, but there has been insufficient study of the profiles of visitors, expenditure patterns and problems experienced by cave tourism destinations. The main aim of this study is to analyse the determinants of the expenditure of same-day visitors on cave tourism, the socio-economic characteristics of the tourists and their attitudes towards the Ballica Cave as a tourist destination. Data were collected from 598 visitors via a questionnaire survey. The double log function was used to determine visitor expenditure on cave tourism. The geographical position of the cave and characteristics of the visitors were taken into consideration when specifying the model. According to the findings, the effect of household income on visitor expenditure was positive but not significant. Distance, age, level of education and gender were important determinants of expenditure. In addition, the majority of respondents thought that the advertising of the Ballica Cave was inadequate. Relatives, friends and neighbours were the main information sources for visitors to the cave.
Abstract: This paper investigates whether there are differences in tourism consumption behaviour among families by analysing the main determinants of tourism participation at national and international levels. In particular, it explores whether tourism is becoming part of the lifestyle of Italians or whether it is still a luxury good only for the privileged. A Heckman model was used on micro-data on Italian family expenditure over the period 1997–2007, and an income elasticity analysis for different personal and household characteristics was carried out. The results show that participation in the tourism market is strongly affected by the personal characteristics of individuals and that tourism consumption is an income-sensitive good. The analysis reveals that tourism is generally a luxury good. Income elasticity analysis shows both similarities as well as differences in Italian tourism consumption patterns at national and international levels. The authors find that consumption behaviour in tourism is affected not only by economic constraints but also by cultural and territorial factors.
Abstract: Rising foreign income increases tourism demand and wages if tourism is labour-intensive relative to capital. This paper adds a third factor of production, skilled labour or natural resources, to delve more deeply into the potential income redistribution in general equilibrium due to rising foreign income. In a small open economy producing tourism and an import competing good, the wage may fall in spite of the expanding tourism sector if capital is a technical complement with the third factor. A model including a traditional export is also examined, as is a specific factors version of the model. The possibility of a falling wage with expanding labour-intensive tourism relates to a number of policy issues in touristic countries.
Abstract: The authors use panel data models on a dataset covering EU new member states and candidate countries (Montenegro and Turkey) to investigate the relationship between tourism activity and price level. Along with modelling the overall price level, the authors also separately model the price level of consumer goods, of consumer services and of goods and services associated with tourism consumption (hotels and restaurants, recreation and culture, transportation and food and beverages). Thereby, they control for other factors that commonly influence the price level of an economy, such as income, productivity, trade openness and fiscal dominance. The results suggest that tourism activity increases the overall price level in the economy. This effect is, however, much stronger for prices of consumer services; in particular, for prices of recreation and culture, and hotels and restaurants.
Abstract: The author analyses the implications of crowding aversion and tourism aversion for the economic performance of tourism destinations in the case of uncertain tourist inflows. He analytically characterizes all possible scenarios, showing how different the preferences of tourists (towards crowding) and residents (towards tourism) interact and affect the economic outcome. The paper shows that, when tourists are crowding-averse (crowding lovers), uncertainty leads to deterioration (improvement) of economic performance, while it does not affect performance at all when tourists are crowding-indifferent. However, assessing how this will be reflected in welfare changes is more complex, since it depends also on the degree of tourism aversion among local residents.
Abstract: This paper assesses the economic impact of international students in a regional economy (Galicia) from the viewpoint of the tourism industry. The current extent of international student mobility and its potential future development make it an appropriate topic for analysis in terms of its local and regional economic impacts, first and foremost at the academic and political levels. A methodology to facilitate the estimation of both the direct effects on the education sector and the possible ‘externalities’ on the tourism industry will enable economic evaluation of financial efforts to attract international students. Without considering the potential increase of other visitors, the results indicate that international students have less economic impact than that associated with inbound tourism and, in the case of exchange students (as a constituent group of international students), the economic contribution could even be negative for a local economy.
Abstract: This research empirically investigates the impact of lodging firms’ chief executive officer (CEO) transition announcements on stock performance and trading activity. Specifically, the study utilizes both parametric and non-parametric event study measures to investigate abnormal stock returns and volume activity during the periods surrounding the announcement of CEO transitions at lodging firms. The study finds significant negative abnormal returns in the periods before and after the announcement of a CEO transition. This suggests that the market did not perceive CEO transitions at lodging firms as value-enhancing events. Regarding trading volume, the study finds a decline in trading activity thirty days prior to announcement, but high trading activity during the immediate period surrounding announcements (5 days before the announcement date and 5 days after). This suggests investor uncertainty regarding the direction and value of the stocks of sampled firms. To minimize the negative impact on stock price and trading volume, it is important that lodging firms plan CEO transitions carefully and provide sufficient and timely information to stakeholders about new CEOs, their background and the value they will add to the firm. Such actions could assuage the negative impact of CEO transition announcement on firm value.
Abstract: The authors posit that religion has a general impact on tourism which goes beyond the direct impact of religious pilgrimages. To that end, an augmented gravity model for international tourist - arrivals is estimated. This makes it possible to assess how five major religions induce or constrain international tourism flows. The results provide evidence that the religious affiliations of both the origin and destination countries have significant explanatory power in global tourism flows, over and above pilgrimage.
Abstract: This study explores the dynamic effects of US employment, real wages, employee overtime hours, travel costs and market shocks on tourism demand to Hawaii from the US mainland. The results show that US tourist arrivals and expenditure in Hawaii are sensitive to a change in total employment. These findings suggest that employment growth is a driving force of US tourism demand for Hawaii. In examining the magnitudes of the income and substitution effects of a change in real wages, the income effect is found to outweigh its substitution effect, indicating that a rise in income resulting from a higher wage increases tourist expenditure in the USA. In addition, the 2001 terrorist attacks and the 2008 financial crisis have had detrimental impacts on tourism demand for Hawaii destinations.
Abstract: A logistic regression model is used to identify the determinants that influence periods of expanding and contracting occupancy growth rates for various hotel categories in Hong Kong. Tourist incomes are found to impact in different ways, depending on the category of hotel. The cycles of income growth in tourist origin countries have a greater impact on high tariff B and medium tariff hotels than on more expensive high tariff A hotels. In examining the applicability of real and nominal exchange rates to tourist hotel selections, it is found that nominal exchange rates are significant only in the case of high tariff A hotels, with a marginal probability of 0.76%. This implies that a 1% exchange rate appreciation in the tourist origin country will increase the expansion period by 0.76% in the case of high tariff A hotels.
Abstract: The objectives of this study are to investigate tourist preferences for liquor souvenirs at a destination by identifying key influencing factors, and to assess the impact of demographic features on preferences. Three hundred and ten stated-preference samples were collected to show preferences by multinomial logit models. The data are divided into several subgroups to verify heterogeneity among tourists in relation to the purchase of liquor souvenirs. The results show that differences do exist among demographic groups purchasing liquor souvenirs at a tourist destination. Age, appearance, capacity and price have distinct impacts on different groups of tourists.