This paper assesses the relationships between the viability of the tourism industry and willingness to pay for aesthetic aspects of environmental quality. Incentives to provide high-quality tourism are limited given asymmetric information, adverse selection and positive search costs, with implications both for the sustainability of the tourism industry and for environmental sustainability more broadly defined. An econometric model is estimated in which willingness to pay is captured using resort rents and related to aesthetic quality, after controlling for service levels. A negative relationship is found. Some policy issues are assessed, focusing on the implications for tourism as an engine for sustainable development.
AkerlofG. (1970), ‘The market for lemons: Quality uncertainty and the market mechanism’, Quarterly Journal of Economics, Vol LXXXIV, pp 488–500.
2.
AndsagerJ.L.DrzewieckaJ.A. (2002), ‘Desirability of differences in destinations’, Annals of Tourism Research, Vol 29, No 2, pp 401–421.
3.
AnstineJ. (2002), ‘Consumers’ willingness to pay for recycled content in plastic kitchen bags: A hedonic price approach', Applied Economics Letters, Vol 7, No 1, pp 35–39.
4.
BestS.PujariD. (2001), ‘Internet marketing effectiveness: An exploratory examination in tourism industry’, Working Paper No 0023, University of Bradford Management Centre Working Paper Series, March.
5.
BosselH. (1999), Indicators for Sustainable Development: Theory, Method, Applications, International Institute for Sustainable Development, Winnipeg.
6.
Business Monitor International (2001), Thailand Quarterly Forecast Report – June, Business Monitor International, London.
7.
ButlerR.W. (1980), ‘The concept of a tourist area cycle of evolution: Implications for management of resources’, Canadian Geographer, Vol 24, No 11, pp 5–12.
8.
ClewerA. (1992), ‘Price competitiveness and inclusive tour holidays in European cities’, in JohnsonP.ThomasB., eds, Choice and Demand in Tourism, Mansell, London.
9.
CraseL.JacksonJ. (2000), ‘Assessing the effects of information asymmetry in tourism destinations’, Tourism Economics, Vol 6, No 4, pp 321–334.
10.
DengJ.KingB.BauerT. (2002), ‘Evaluating natural attractions for tourism’, Annals of Tourism Research, Vol 29, No 2, pp 422–438.
11.
DiamondP.A. (1971), ‘A model of price adjustment’, Journal of Economic Theory, Vol 3, pp 156–168.
12.
GoeldnerC. R.RitchieJ. R. B.McIntoshR. W., eds (2000), Tourism Principles, Practices, Philosophies, 8th edition, John Wiley & Sons, New York.
13.
GonzálezM.LeónC.J. (2001), ‘The adoption of environmental innovations in the hotel industry of Grand Canaria’, Tourism Economics, Vol 7, No 2, pp 177–190.
14.
GosslingS. (2000), ‘Sustainable tourism development in developing countries: Some aspects of energy use’, Journal of Sustainable Tourism, Vol 8, No 5, pp 410–425.
15.
HardinG. (1968), ‘The tragedy of the commons’, Science, pp 1243–1247.
16.
HaywoodM. (1986), ‘Economic business cycles and the tourism lifecycle concept’, in IoannidesD.DebbageK.G., eds, The Economic Geography of the Tourism Industry: A Supply-Side Analysis, Routledge, London.
17.
HilleryM.NancarrowB.GriffinG.SymeG. (2001), ‘Tourist perception of environmental impact’, Annals of Tourism Research, Vol 28, No 4, pp 853–867.
18.
HoldenA. (2000), Environment and Tourism, Routledge, London.
19.
HuybersT.BennettJ. (2000), ‘Impact of the environment of holiday destination choices of prospective UK tourists: Implications for Tropical North Queensland’, Tourism Economics, Vol 6, No 1, pp 21–46.
20.
KeaneM. (1997), ‘Quality and pricing in tourism destinations’, Annals of Tourism Research, Vol 24, No 1, pp 117–130.
21.
KontogeorgopoulosN. (2000), ‘Sustainable tourism or sustainable development? Financial crisis, ecotourism and the “Amazing Thailand” campaign’, Current Issues in Tourism, Vol 2, No 4, pp 316–322.
22.
LancasterK.J. (1966), ‘A new approach to consumer theory’, Journal of Political Economy, Vol 84, 1966, pp 132–157.
23.
MurphyP. (1983), ‘Perceptions and attitudes of decision making groups in tourism areas’, Journal of Travel Research, Vol 21, No 3, pp 8–12.
24.
NESDB (2001), Strategy Plan Framework: Toward Quality and Sustainability of Thailand Economic Development, National Economic and Social Development Board Ministry of Finance, Bangkok, July.
25.
PapatheodorouA. (2000), ‘Why people travel to different places’, Annals of Tourism Research, Vol 28, No 1, pp 164–179.
26.
ParnwellM.J.G. (1992), ‘Environmental issues and tourism in Thailand’, in HitchcockM.KingV.T.ParnwellM., eds, Tourism in South-East Asia: Theory & Practice, Routledge, London.
27.
RosenS. (1974), ‘Hedonic prices and implicit markets: Production differentiation in pure competition’, Journal of Political Economy, Vol 82, No 1, pp 34–55.
28.
RussoA.P. (2001), ‘The “vicious circle” of tourism development in heritage cities’, Annals of Tourism Research, Vol 29, No 1, pp 165–182.
29.
SalopS. (1977) ‘The noisy monopolist: Imperfect information, price dispersions and price discrimination’, Review of Economic Studies, Vol 44, pp 393–406.
30.
ShapiroC. (1983), ‘Premiums of high quality products as returns to reputations’, Quarterly Journal of Economics, Vol 98, No 4, pp 659–680.
31.
SinclairM. T.StablerM. (1997), The Economics of Tourism, Routledge, London.
32.
SinclairM.T.ClewerA.PackA. (1990), ‘Hedonic prices and the marketing of package holidays’, in AshworthG.GoodallB., eds, Marketing Tourism Places, Routledge, London.
33.
SorsJ.C. (2001), Measuring Progress Towards Sustainable Development in Venice: A Comparative Assessment of Methods & Approaches, Fondazione Eni Enrico Mattei, Milan.
34.
StiglitzJ. E. (1989), ‘Imperfect information in the product market’, in SchmalenseeR.WillingR.D., eds, Handbook of Industrial Organisation, Elsevier, Amsterdam.
35.
StiglitzJ.E. (1975), ‘The theory of “screening”, education and the distribution of income’, American Economic Review, Vol 65, No 3, pp 283–300.
36.
TisdellC. (2001), Tourism, Economics, the Environment and Development: Analysis and Policy, Edward Elgar, Cheltenham.
37.
UNDP (2001), World Development Report 2001, Oxford University Press, Oxford.
