Tourism Economics

Focusing on the example of the UK, this paper describes and discusses work being undertaken by Oxford Economic Forecasting Ltd (OEF) to extend the relevance of Tourism Satellite Accounting (TSA) for policy assessment and formulation. The research embeds the analysis of the travel and tourism (TT) sector in a general equilibrium framework and considers the implications of spillovers between TT and the supply-side performance of the rest of the economy. The paper is organized as follows. Section (a) briefly describes the advantages and drawbacks of the traditional approach to tourism satellite accounting, based on demand-side analysis and input–output modelling. Section (b) discusses the use of computable general equilibrium (CGE) models to incorporate TSA analysis into a model of the whole economy, and again a number of advantages and weaknesses with this approach are highlighted. Section (c) outlines the model developed by the authors to analyse the interactions between the TT sector and the rest of the UK economy. Section (d) discusses possible spillover effects (or externalities) resulting from changes in TT for the supply-side performance of the rest of the economy, drawing on the insights of endogenous growth theory. It also describes OEF's econometric research on the relationship between the transport infrastructure and the supply-side performance of the UK economy, and how these effects are incorporated in the model described in Section (c). In Section (e) the authors use their model to analyse the impact of illustrative shocks to travel and tourism in the UK. Section (f) sets out their conclusions and highlights areas for further study.

Understanding customers' preferences and preference structure is an important aspect of managing service applications. This paper develops a heuristic approach that includes a new preference elicitation procedure and two different value function models. The elicitation procedure makes no assumptions about the form of the preference structure of the decision maker (DM), is easy to understand, and does not take much time to complete. Then, two different models based on different assumptions about the DM's preference structure are developed to fit the elicitation procedure data. The Linear-Fractional Model assumes perfect substitution (linear indifference curves where the slopes can vary) and the Decision Utility Model assumes perfect complements (right-angled indifference curves). The paper develops the methods using an example of a park management problem. The models are tested in an exploratory experiment that demonstrates how to use the methods and techniques in a multi-criteria decision problem.

Using survey data gathered in 1999 from eight new US casino jurisdictions, this research examines citizens' perceptions of casino gambling as a tool of economic and tourism development. In particular, the paper examines whether residents perceive that casinos have revitalized their communities by rejuvenating the local economy, attracting new industries and increasing tourism, or whether the impact has been more negative, resulting in, for example, business closure and in the casinos taking more out of the community than they contribute to it. The results suggest that, on average, casinos are perceived to be a positive catalyst for economic and tourism development. However, geographical proximity to the casino, demographic characteristics, and the structure of the industry are all important determinants in the creation of these perceptions.

Ecotourism is an important niche market in the world tourism industry. It is becoming increasingly popular as an alternative to mass tourism. The emergence of ecotourism was facilitated by the environmental damage associated with mass tourism. Ecotourism is defined in many ways and there is no consensus as to its exact meaning. However, a number of salient elements, such as environmental conservation, maintenance of biodiversity, a satisfying experience for the visitors, study and appreciation of nature and sustainable community development, are included in many definitions. Tourism creates negative environmental externalities in the form of environmental damage. Such adverse effects can have serious implications for the tourism industry because they damage the very natural resource that forms the raw material for ecotourism. Ecotourism ventures should thus be properly planned and implemented and carefully monitored. Proper planning of ecotourism is hampered by the paucity of relevant qualitative and quantitative information. The use of analytical tools such as the Contingent Valuation Method, carrying capacity, decision analysis techniques with which multi-objective and uncertain consequences can be analysed, and other management strategies, such as the Safe Minimum Standard, can be useful in enabling better planning of ecotourism. Ecotourism can thus enhance the opportunities for better management of natural resources while providing a satisfying experience for the visitor.

An econometric model of revenues from international tourism for the transition economy of Croatia is estimated over the period 1993:1 to 1999:4. It is found that European Union GDP and the real effective exchange rate are significant factors influencing Croatian tourism revenues. Moreover, the 1995 military action by Croatia to regain authority over the territories occupied in 1991 had an adverse effect on tourism revenues. There is also evidence of seasonal variation in tourism revenues, with the tourist season from July to September exerting the largest impact. Finally, the estimated econometric model is robust with respect to the model's residual diagnostics and stability of the regression coefficients.

The Americas form the second largest destination region in international tourism. The World Tourism Organization reported total receipts from inbound tourism of US$136 billion in 2000, 11% above 1999 (in current US$, including receipts from day-visits but excluding international fares). The revised receipts and principal hotel data are presented for the 54 countries (by sub-regions).