Vol 20 No 2 April 2014
Abstract: This paper assesses how tourism affects absolute poverty beyond its effects on growth in two developing countries. In particular, the author explores whether tourism spending leads to a decline in the proportion of people below the poverty line. An error correction model is applied to estimate the relationship between poverty and tourism spending. The results reveal that tourism does matter for the poor, but that it does not appear to have systematic effects, and that tourism development matters most for the poor at the lower levels of economic development. The findings from the two developing country case studies show differing impacts of tourism development, and thus the policy implications differ for each case.
Abstract: This study concerns decision timing in international tourism; that is, the amount of time that elapses between a decision being made to visit a foreign country and the trip actually taking place. In particular, the focus is on differences in decision times among tourists of different nationalities. The empirical setting is the inbound summer tourism market in Norway, and the data are based on a large- scale visitor survey conducted in 2011. The average international tourist visiting Norway during the 2011 summer season made the decision to do so about six months in advance; however, there were noticeable national differences in this regard. Furthermore, the results show that certain other independent variables contribute to the statistical explanation of variations in decision times. The implications for further research and marketing are discussed.
Abstract: The importance of cultural events for attracting tourism has often been posited in research, but rarely tested in relation to non-cultural activities. This paper investigates the association between participation in entertainment activities and tourism flows in Italian provinces, and finds that admission to theatre-type activities increases as the number of domestic tourists rises, whereas admission to museums or concerts rises with an increase in foreign tourists. Admissions to exhibitions and shows demonstrate a positive association with both domestic and international tourists, while non-cultural activities remain statistically insignificant. The results provide empirical support for the existence of a strong relationship between tourism flows and cultural participation. The findings also imply that the demand for entertainment varies depending on the origin of the tourist.
Abstract: The objective of this paper is to show how surveys are used to elicit users’ preferences and willingness to pay for novel packages of e-services used in commercial tourism. The authors analyse data gathered from 5,100 questionnaire survey responses by residents, visitors and service providers in three European cities – Amsterdam, Genoa and Leipzig. The results show that people are willing to pay for some of the proposed e-services, while other services clearly represent a cost. The findings are important for the improvement of decisions in the tourism industry, which often uses various combinations of e-services to promote cultural heritage, enhancing visitors’ experiences. In addition, the results may help to identify eventual prices that could be charged for the use of e-services in cultural heritage.
Abstract: This study estimates the economic impact of the Pope’s visit on 6 November 2010 on the region of Galicia. Several sources of information are used, including the authors’ own surveys, interviews, official statistical sources, press and audiometric studies developed by specialized companies. The cost–benefit analysis methodological approach is applied. Overall, the authors conclude that the net effects are clearly positive in terms of boosting regional economic activity and tourism promotion. Conversely, tax returns for the regional government are very low due to the fiscal federal arrangements in Spain.
Abstract: Numerous studies have examined the relationship between tourist expenditure and observable characteristics of the individual and the trip. We add latent variables based on psychographic factors into a model of expenditure by nature-based tourists. This study models the log of per person trip expenditure by domestic and international visitors in a Norwegian alpine national park region as a function of psychographic factors as well as traditional measures of trip and demographic characteristics. In the regression models, factor scores were utilized from nature orientation, recreation experience preference (REP), a new ecological paradigm (NEP) and wilderness preference (WPS) scales. Higher scores on a NEP environmentalism factor were associated with higher expenditure, while higher scores on a REP risk seeking factor were associated with lower expenditure. Higher scores on a risk seeking, or challenge factor, from the nature orientation scale was associated with lower expenditure, while higher scores on an inspiration seeking factor were associated with higher expenditure. Structural equation models were then estimated for comparison. The implications for tourism management and marketing are discussed.
Abstract: Ski tourism is strongly influenced by climate change. The economic success of ski tourism regions depends on both the quantity and quality of the ski resorts’ opening days. However, to date there has been little research on the quality of ski season opening days. The purpose of this paper is to develop and apply a parameter that enables us to assess the future development of ski seasons in a differentiated way. The results show a decrease of ski area opening days from 2011 to 2060 in the investigation area in general and a trend to an intra-seasonal postponing of optimal ski days, labelled the ‘Christmas–Easter shift’. The parameter developed contributes to our understanding of climate change effects on the tourism supply-side at a regional scale and offers decision support to ski lift operators or tourism associations in terms of adaptation measures.
Abstract: The authors analyse the returns on human capital and the importance of educational mismatch in determining wages in the Spanish hospitality and the travel agency sectors. In addition, they assess the impact of several job characteristics (business size, full-time contracts and permanent contracts) and personal characteristics (gender and worker nationality) on wages. Using an expanded Mincerian wage equation and data from the 2006 Spanish Wage Structure Survey, they estimate separate regressions for each educational group analysed: overeducated, undereducated and adequately educated workers. The results show that the return on human capital and the real hourly wage may be quantitatively influenced by educational mismatch. Moreover, evidence is presented regarding the impact of firm size on wage returns and the data also reveal wage differentials by the gender and nationality of workers in the Spanish hospitality industry.
Abstract: This paper analyses the evolution of the knowledge base in local tourist production systems (LTPS) in Spain and of knowledge-intensive business services (KIBS) and the effects on labour productivity in tourist services. Innovation depends on an enterprise’s ability to generate new knowledge and absorb external knowledge, and KIBS are external providers of knowledge. The process ends when the acquired knowledge has an effect on innovation and the impact is reflected in increased productivity. This approach assesses learning through interaction and space. It applies multidimensional scaling to detect associations between variables and LTPS. The results indicate that most changes in productivity are caused by a combination of tacit and codified knowledge, but this differs depending on the LTPS. Labour productivity also increases in the LTPS, which further increases the supply of KIBS.
Abstract: This paper examines the effect of US Federal Reserve monetary policy action announcements on hospitality index returns (HIRs) and provides evidence of cyclical variation in the impact of federal funds target rate surprises on US HIRs. To obtain a correct identification of monetary policy changes, the paper follows Kuttner in separating the surprise element from the expected element of the target rate changes. The surprise element is expected to have a strong influence on HIRs because the surprise component is not yet priced in the market. Test results show that funds target rate surprises can have a significant impact on airline, gambling, hotel and travel and leisure index returns, but actual funds target rate changes and the expected component have no strong impact on HIRs. Moreover, the significant influence of funds target rate surprises on HIRs depends on business conditions and is much greater in size and statistical significance in business contraction. In particular, the significant effects of federal funds target rate surprises on airline, hotel and restaurant index returns are found to exist only during periods of business cycle contraction.
Abstract: Policymakers often see a currency devaluation as a means of increasing a country’s exports, providing a boost to economic activity. In an economy where tourism exports are significant, a devaluation will make tourism more competitive, providing a stimulus to the economy through tourism exports. Imports will be more expensive, which is often seen as an inflationary side-effect of the export stimulus. Results from a computable general equilibrium model of Fiji indicate that, while devaluation will increase tourism consumption, the overall effect on the economy will be contractionary, as household consumption, investment and domestic production will all decrease. Policymakers and central banks need to consider the full economy-wide impacts of a currency devaluation when determining the overall benefit to the economy.
Abstract: This paper uses data from a major loyalty card scheme to draw insights about the characteristics of grocery expenditure by tourists. The authors explore the volume, value and composition of store-based visitor expenditure using consumer data from the loyalty card scheme. They focus on grocery spending at selected stores in Cornwall, a popular tourist destination in South West England. The loyalty card data provide a valuable source rarely available for academic investigations. The authors are able to analyse visitor spend by socio-economic and geodemographic characteristics, drawing a range of comparisons with residential demand from within the store catchment areas. They demonstrate that visitor grocery expenditure is complex and varies by store, destination and type of customer. The paper presents evidence to suggest that the current approaches used to estimate sales uplift and local-level economic impact from visitor demand are unable to account for the complexities of this form of expenditure. Based on these insights, the authors recommend that sophisticated modelling is employed to estimate the impact of visitor expenditure.
Abstract: This paper compares three different procedures for weighting sustainability indicators in the construction of composite indicators of tourism sustainability (TS). The case of Croatian coastal destinations is used. The particular weighting procedures are: (a) factor analysis (FA); (b) expert panel survey; and (c) the equal weights technique. As the results of this study reveal, the weights attached to different sustainability indicators can differ significantly depending on the weighting procedure used. Accordingly, inappropriate choice of weighting procedure could distort the relative importance of different sustainability indicators and thus could result in imperfect decisions by policymakers. The authors argue that the suitability of factor analysis as a weighting procedure in the construction of composite indicators of TS is rather questionable.
Abstract: This paper investigates the effect of hotel room revenue on labour demand based on data for international tourist hotels in Taiwan. Past empirical research on the relationship between hotel room revenue and labour demand has failed to take into account the fact that the causality between these two variables can be a two-way rather than just a one-way relationship. In other words, room revenue can affect labour demand and vice versa. The authors address this issue by using an instrumental variables (IV) regression approach in which room revenue and hotel labour demand can be determined simultaneously. The empirical results indicate that a failure to account for the two-way causality will underestimate the effect of room revenue on labour demand. The findings are of particular importance to hotel managers as the authors provide more accurate estimates for the relationship between hotel room revenue and labour demand.