Vol 21 No 4 August 2015
Abstract: According to the tourism area life cycle (TALC) model of Butler (1980), the evolution of a touristic destination follows an S-shaped curve which is upper-bounded by its carrying capacity, usually assumed to be a fixed constant. This forecast prevents a tourism-based economy from maintaining positive growth rates in the long run. However, infrastructures, transportation networks, accommodation facilities and the variety of attractions can be broadened to increase the tourism carrying capacity. In this paper, innovation is the motor of carrying capacity growth. The model follows the tradition of R&D-based endogenous growth models and allows the long-run sustainability of economic growth in a tourism-specialized economy. Along a balanced growth path, the income from tourism grows at the same rate as the innovation, and the carrying capacity will grow as the rate of innovation surpasses the foreign economic growth rate. The long-term growth of the economy depends on the real exchange rate.
Abstract: The development and growth of tourism depend on its sustainability over time and on its benefits for destinations as a whole. However, calculating sustainability is not an easy task. This article focuses on the economic sustainability of tourism growth and, after an exhaustive review of the literature, proposes a quantitative mathematical model to measure it by analysing and calculating leakage in the hotel sector. Leakage analyses the amount of revenue generated by tourists that does not remain in the destination economy. Through a sample of 204 interviews with managers, this study validates the model created and calculates leakage in a mass tourism destination (the Valencian Region in Spain). The paper opens new areas of research in sustainability literature and will be of value to tourism planners and governments in their efforts to implement appropriate tourism development policies.
Abstract: This paper develops a novel methodology for estimating the value of destination image, which incorporates two principal advantages over the methods used to date. First, it allows tourism destination image to be assessed in economic terms, so a formal cost–benefit analysis can be executed to ascertain whether or not a specific marketing action should be implemented. Second, it enables a disentangling of the economic assessment of tourist destination image in terms of destination attributes. This can be used to design marketing actions aimed at optimizing marketing efforts to enhance a destination’s image.
Abstract: Studies often overlook negative outputs when measuring hotel performance. This paper investigates the consequences of such omissions by comparing two performance models, one that includes negative outputs (customer complaints) and one that excludes negative outputs. The authors show that excluding negative outputs underestimates the efficiency and productivity results. The results also indicate important differences in the performance ranking of hotels when negative outputs were excluded from the model. The authors also found that hotel size and hotel classification have a minor impact on performance when accounting for negative outputs.
Abstract: The traditional literature on investment in touristic promotion identifies the ‘natural targets’ as the main tourist issuing regions. However, other parameters should also be considered, such as the income level of the region, the emitter–receiver ratio, geographical proximity and, principally, the existence of a strategic interdependence scenario. This paper, in addition to these parameters, uses the monetary return from tourists to show that the literature needs to move towards multivariate analyses. By means of game theory and a consideration of the main Brazilian states linked to tourism, it is observed that the results almost entirely indicate that decisions on where to make investments in touristic promotion are not as obvious as may be supposed, with the possibility of multiple targets.
Abstract: Supply-chain management in tourism requires the collaboration and coordination of all companies involved in the production and marketing of tourist products. In order to study the direct and indirect relationships among members of the supply chain, this paper presents an input–output model whose results show the need for balance between direct and intermediated sales, on the one hand, and how individual strategies may impair the benefits of the whole chain, on the other. Additionally, although the producers are the most important agents in terms of turnover, when considering the joint effects of purchases and sales, intermediaries are seen to be the key enterprises of the supply network.
Abstract: Although diversification strategies in the US restaurant industry are actively implemented with strategic importance, research on the effects of diversification on firm value has been rare. This study investigates the individual effect of geographical diversification and brand diversification on firm value in the US restaurant industry context. Furthermore, to investigate the effects of diversification more comprehensively, this study examines whether or not brand diversification moderates the relationship between geographical diversification and the value of US restaurant firms. The study finds an insignificant effect of geographical diversification on firm performance, a negative effect of brand diversification on performance and a negative moderating effect of brand diversification on the geographical diversification–firm performance relationship.
Abstract: As a particular type of wetlands, mudflats are a potentially valuable natural resource that has become an alternative destination for nature-based tourism. One prominent example of using mudflats in a tourism context is the Boryeong Mud Festival. To understand the role of the touristic experience in shaping the need for preservation, this study: (a) examines the effect of experiences in a nature-based festival on visitors’ willingness-to-pay (WTP) to preserve mudflats; and (b) estimates the preservation value of mudflats by using a contingent evaluation method. In particular, the perceived value of festival experiences is included in the proposed models when estimating visitors’ WTP. The results indicate that the experience of festival visitors was positively associated with WTP by showing that festival visitors perceived a higher level of utility for preserving mudflats as the functional value of festival experience increased. Based on the error-reduced WTP results, the average respondents’ WTP and the annual aggregate preservation value of mudflats were estimated at KRW 11,039 (US$8.64) and KRW 22,818 million (US$17.85 million), respectively.
Abstract: This research quantifies changes in consumer welfare due to changes in visitor satisfaction with the availability of information about recreational sites. The authors tested the hypothesis that an improvement in visitor satisfaction with recreation information increases the number of visits to national forests, resulting in increased consumer welfare. They tested the hypothesis with a travel cost model for the Allegheny National Forest using data from the National Visitor Use Monitoring (NVUM) programme. An ex ante simulation suggests that annual per capita consumer welfare increased when highly satisfactory recreation information was available. The findings, along with the expected costs of providing better recreation information, may be a useful reference for recreation site managers who wish to increase the number of visits in an economically effective way.
Abstract: In a previous article published in this journal, the authors show that the total requirements approach to analysing a region’s tourism and hospitality industry is superior to the traditional use of location quotients. This paper extends the authors’ previous research by focusing on imports. It introduces the import gap analysis as a powerful, highly accurate analytical tool for use by local policymakers and economic development officials charged with identifying, targeting, and recruiting industries and businesses offering the highest opportunities for growth. The best method to define and analyse the local tourism industry is to utilize both exports and imports as a package approach.
Abstract: This paper examines the impacts of the quality of government on international tourism competitiveness. Quality of government is conceptualized in terms of an absence of corruption, a well- established rule of law and bureaucratic efficiency. Based on the cross-country analysis of the Travel & Tourism Competitiveness Index (World Economic Forum, 2013), the main finding of the study demonstrates that quality of government is positively associated with tourism competitiveness and that this positive effect remains robust across a number of control variables and estimation techniques. The results suggest that public policy for building a successful tourism industry should be nested in the broader project of enhancing the quality of government.
Abstract: This paper explores the spatio-temporal trend structure of inbound tourism development levels in China from 1991 to 2010. The investigation is based on theories of unbalanced regional economic growth and uses econometric methods. Absolute and relative disparities at the provincial level of inbound tourism in China tended to decrease during the 1990s. From 2001 to 2010, the relative disparities gradually decreased, whereas the absolute difference slightly increased. The overall regional disparity in the tourism development level exhibits a non-polarized and unbalanced development tendency along with the emergence of new, secondary tourism economic growth centres. Moreover, gradient differences remain in the three economic zones of China. This paper proposes a paradigm framework for regulating regional disparities and for facilitating comprehensive and coordinated inbound tourism development.
Abstract: Recent research on the excise tax effects of the property tax in small, multi-sector open economies suggests that the property tax may not be fully forward shifted to consumers, as previously believed. This paper adapts this analysis to examine whether local hotel property taxes in Hawaii are fully passed on to hotel guests as lawmakers had intended. The paper concludes that full forward shifting is unlikely. It argues that an excise/sales tax on hotel occupancy is preferable to the property tax as a tourist tax.
Abstract: Tourism is a major economic activity for Italy, and one of its most important income sources. In recent years, tourism supply has changed considerably and rural tourism has been growing rapidly. Studies of agritourism are increasing, but the determinants of the international demand for rural tourism remain largely under-investigated. This paper empirically investigates the determinants of the international demand for agritourism in Italy. It shows the luxury nature of rural tourism and demonstrates that international flows are demand-driven. To the extent that entrepreneurs and policy makers wish to encourage rural tourism, subsidies, policy interventions and marketing campaigns may differ substantially according to the foreign countries targeted. The paper investigates these differences.
Abstract: Maduganga is a Ramsar wetland in Sri Lanka, an area of high biodiversity and a unique ecosystem receiving high visitation (52,726 local visitors in 2012). Although tourism causes negative impacts on the environment, the welfare benefit it enjoys (in terms of consumer surplus) should be considered while taking natural resources management decisions on Maduganga. The study shows that the value of the annual welfare benefit at Maduganga is about SLR 19.96 million, but the total economic value could be many times higher than this. However, the present value of non-market benefits from preserving the site remains at a figure of SLR 199.6 million per year. The revenue from Maduganga could be maximized if the passenger boating fee were raised to SLR 378.56. It is estimated that this may reduce the present number of visitors by 45%, but enhance total revenue by 294%. The outcome of such a strategy would resolve the crisis caused by the insufficient allocation of manpower and funds for wetland conservation.