However, the project has completely changed since its conception two years ago and, from what should have been only a translation of the Italian version, the book has been completely revised and updated. Springer's editor, Barbara Fess, for the encouragement and patience as she awaited the final version of the book.
As of early 2012, this classification is the best proof that Tourism Economics has built its own history and, although one may disagree with Stabler et al. In fact, in the international literature, there are many well-known, well-structured and interesting Tourism Economics texts.
Was There a Need for Another Textbook?
Third, the book's structure is tailored to the organization of tourism markets, discussing both microeconomic and macroeconomic issues. In this way, we aim to provide a whole and unifying framework in which tourism economics can be analyzed in a coherent manner.
The Organization of the Textbook
The second part (including chapters 5-12) is the microeconomic analysis of tourism, divided into the analysis of tourism demand (chapters 5-6), the analysis of tourism producers (chapters 7-9 and 12) and the analysis of tourism markets ( chapter 10 and 11). We hope that the book's organization and treatment of the issues under discussion will be useful to students, practitioners and researchers.
On the Research and Teaching of Tourism Economics
- Genus and Species Disciplines
- What Is Tourism?
- Is Tourism Economics a Species Discipline or a Field of Study?of Study?
- The Central Role of Tourism Destinations
We can therefore say that the development of a tourist destination depends both on the variety of the local product on offer and on the natural resources available at the destination. To reflect on the role of the economics of tourism in relation to other disciplines when studying the phenomenon of tourism.
These are just some of the main challenges for the Tourism Economy, which will be examined in detail in this book. In section 2.6 we will describe the main indicators for measuring tourism activity.
The Economics of Tourism
The tourism phenomenon begins in the tourist's place of residence, at the moment when the planning of the trip and of the spending takes place. The experience phase, which consists of the direct performance of the leisure activities located in the destination.
The Use of Models in the Economics of Tourism
It is relevant to highlight that the five phases of EOR particularly coincide with the phases identified in the departure-trip-stay model, which we previously explained as the standard model of the economics of tourism. In connection with the Economics of Tourism, the approach used consists in moving from the first intuitions of the tourism phenomenon – explained in the previous section, to more rigorous content.
Tourism and the Tourist
Some Definitions of Tourism and Tourist
Interestingly, the UNWTO defines any person who travels as a visitor, regardless of whether they stay overnight in the destination or not. However, it is essential to understand that the UNWTO definition of tourism does not include purposes of visit related to the exercise of an activity that is remunerated in the visited place.
The Taxonomy of Tourism
Similar to the classification of international visitors disclosed in the previous sub-section, here domestic visitors include: (a) domestic tourists, who spend at least 24 hours (or at least one night) but less than 6 months at the destination; (b) domestic excursionists (domestic day-trippers) who spend less than 24 hours at the destination. Having described so far many existing observations on the issue of defining and measuring tourism, we can now move on to the definition of the tourism product.
The Heterogeneity and Plurality of the Tourism Product
In this textbook, we define a tourism product (or tourism result) as a basket of various goods and services that are demanded by the visitor during the tourist experience. The unit of measure for goods and services is a tourist day (hereinafter referred to as an overnight stay).
The Measurement of Tourism
- On the Tracks of the Tourist
- The Measurement of Tourism Flows
- The Tourism Expenditure
- The Propensity to Travel
Arrivals(A) defined as the number of visitors reaching the destination regardless of the length of their visit. In addition to studying the tourism phenomenon and measuring flows and expenditures from the perspective of the destination (or host region), we can use table 2.6 Total tourism expenditures.
Be able to discuss the various issues related to the identification and definition of the tourism sector in the economy and what are the approaches used to measure its relevance. We will then assess the importance of tourism to both national and international economies by presenting some key figures (see Section 3.5).
The Tourism Sector
National Accounting and the Tourism Sector
Although the choice of a technological or market criterion depends on the economic problem to be studied, neither is appropriate in identifying the tourism sector. In summary, using these two criteria to identify the tourism industry would lead to either unsatisfactory or counter-intuitive conclusions.
The Supply-Side Approach
Public Administration. This department operates at two levels: the national level, in terms of national security, customs administration, transport laws and regulations, etc.; regional level in terms of public services, visa management (when local administrators are responsible), etc. Education and Training. This section, which varies greatly from country to country, includes all institutions that provide professional training (cooks, guides, interpreters, etc.) and academic training (diploma and master's) to individuals seeking employment in tourism.
The Demand-Side Approach and the Input–Output Analysis
The Table of Sectoral Interdependence
In our example, each row of the table represents the sales of a certain sector to the others: the agricultural sector sold €100 billion worth of production, of which €20 billion went to the manufacturing sector and €30 billion to the services sector. and 50 billion to the household consumption sector. Each column of the table represents the purchases by a particular sector from the others.
The Input–Output Model and Its Application to Tourism
Finally, the aggregate output of the service sector will have to satisfy direct tourism demand plus 0.1 times agricultural output and 0.3 times manufacturing output (third row of table 3.2). This is obtained by dividing the tourist demand (second last column of table 3.3) by the aggregate production of the sector (last column of table 3.1).
The Integration Between Two Methods of Observation for Tourismfor Tourism
After all, tourism relates to production activities that are spread over different branches of the economy. The fourth part usually varies depending on the questionnaire and outlines the main objectives of the survey (e.g. the tourist may be asked to rank services according to their satisfaction).
Tourism Within the National Accounting System
- Final Consumption and Tourism Items
- Fixed Capital Formation and Tourism
- Evaluating the Tourism Production
- Tourism Balance of Trade
- Trips Abroad
The balance of payments (BoP) is the accounting document that records all transactions of a country in relation to the rest of the world. According to the recent criteria approved by the International Statistical Offices, the trade balance for tourism is included in the current account of the balance of payments.
The Tourism Satellite Account
Along with the establishment of the Canadian Tourism Commission in 1994, it was also one of the first countries to publish the TSA as part of its national accounting system. In practice, these identities are not fulfilled due to the limitations of the statistical system.
The Role of Tourism in Contemporary Economies
Therefore, another striking feature of international tourism is the changing pattern of distribution of flows across regions. The Satellite Accounting System (TSA) is a special methodology that effectively measures and quantifies the importance of tourism in the economy.
The approach adopted to understand such a distinction and to select those issues which are at the heart of the Economics of Tourism Destinations is the following:. The Microeconomic level refers to the price and quantity of the elementary goods and services included in the tourism product;.
An Introduction to the Tourism Demand
The Demand for Different Types of Tourism at the Destinationat the Destination
Instead, the change in the number of overnight stays due to other variables, such as disposable income or the share of income allocated to tourism activities, leads to a shift in the demand curve. Finally, a change in the number of days the tourist spends at the destination in response to a variation in the total money available for tourism, Mtou ceteris paribus, is also accommodated by a shift in the demand curve.
The Elasticity of the Tourism Demand
The elasticity of tourism demand is the ratio of the percentage change in quantity demanded Ni,r to the percentage change in price vi,r that caused it. Finally, the concept of cross-price elasticity can also be applied to some microeconomic aspects of tourism demand.
The Destination as the Core Element of the Tourism SystemSystem
- The Coordination of Activities in the Destination
- The Variety in the Tourism Product of the Destination
- The Destination Management
- Destination Marketing
- Destination Web Management
In such a scenario, the tourist who wants to issue a 4.3 The destination as a core element of the tourism system 87. The promotion problem can arise when the destination marketing overlaps with the marketing of the tourism product.
The Pricing Policy of the Destination
Price, Overnight Stays, and Tourism Expenditure
For example, let's assume a destination where the current holiday price corresponds to the Cournot pointEon the demand curve. If demand were to increase (the demand curve would shift to the right, due to a positive market effect or a positive idiosyncratic effect of the destination or the type of tourism offered) and the price would remain constant, we would observe an increase in the tourism demand, which therefore leads to a greater number of overnight stays in the destination (from point E to point K).
Price, Overnight Stays, and the Quality of Tourism
The overall effect can be described as follows: The increase in the daily price of the holiday leads to a reduction in the length of stay at the destination and thus lowers the total number of overnight stays. The overall effect can be described as follows: The increase in the daily price of the holiday results in a reduction of the length of stay at the destination and thus reduces the total number of overnight stays.
The Evolution of the Destination
The Destination Life Cycle
The organization of the destination is therefore in the hands of the uncoordinated private sector. The stagnation phase is reached at the peak of the number of overnight stays and represents the phase when the destination begins to lose its attractiveness in the eyes of tourists.
Types of Tourists and the Evolution of the Destination
We can argue that the issues of those destinations that skip one or more stages of the evolutionary process should be addressed with ad hoc policies. This will likely lower the price of the tourism product, requiring the creation of a more standardized package.
Forecasting the Tourism Demand
In the study of tourist demand, the concept of elasticity (the ratio between the change in percentage of the variable ya and the change in percentage of the variable x, when due) is essential. This can be achieved at the Cournot point of the demand curve, where the own price elasticity takes on a unit value.
Expenses in the tourist's region of origin during the preparation of the trip (maps, guidebooks, etc.);. The systematic discussion of more specific topics related to the consumer theory applied to the tourist is deferred to ch. 6.
Purchasing the Tourism Product
The Tourism Basket
The tourist basket is always linked to the territory in the sense that its characteristic cannot be independent of the destination where the vacation takes place (Chapter 4). Before discussing such models, it is important to deepen the understanding of the basket concept by considering two alternative perspectives: (a) aggregate analysis of the tourist basket and (b) structural analysis of the tourist basket.
The Aggregate Analysis of the Tourism Basket
Also, the choice between the two possible averaging methods depends on the nature of the matter under investigation and the objective. Note that, unlike the simple average, the weighted average depends on the tourism structure of the destination.
The Structural Analysis of the Tourism Basket
In addition, the choice of the best aggregation method largely depends on the available information and data on prices and tourist flows. For this reason, with the great rigidity of the demand for good x, the price of the individual components of the tourist basket is unimportant.
The Choice of the Tourist as a Consumer
- The First Stage of the Tourist Choice
- The Second Stage of the Tourist Choice
- The Third Stage of the Tourist Choice
- The Prices of Tourism in the Tourist Choice
The unknowns of (5.7) are the values of overnight stays per type of tourism: N1 and N2. An analogous discussion can be conducted mutatis mutandis on the basis of the solution of the third stage, which can also lead to corner solutions.
The Purchase of a Package Holiday
Figure 5.4 shows the graphical structure of this decision using a standard utility function that depends only on income, U(Y, 0), and its vertical translation, U(Y, 1), which also takes into account the purchase of vacations. 9Condition (5.12) associated with an initial level of income equal to 0N determines the level of utility NA with respect to U(Y, 0) in the event that the tourist does not buy a vacation. Since, by construction, the tourist does not care whether he is at point A or point E, the segment MN provides the measure of the reservation price V*. Therefore, if the price of the all-inclusive trip is lower than or equal to MN, the trip is purchased;.
The Tourist Who Self-organizes the Holiday
Self-organization of the Holiday
Therefore, the production function of the tourist who organizes the holiday himself can be written as. Now if we recall from (5.2) that the daily price is of the holiday and if we denote by the unit cost of the time spent in producing it (as in McConnell (1985), then we consider as the unit wage, i.e. the opportunity cost of time) is the total cost of the self-arranged holiday.
The Choice Between Self-organizing and Purchasing a Holidaya Holiday
On the one hand, the destination must be aware of the substitutes and complements allowed by the tourism production technique (see section 5.2.3); on the other hand, it must guarantee the existence, in its own territory, of all substitutions and additions requested by the tourist when organizing the holiday himself. Otherwise, the self-producing tourist cannot build the same vacation produced and sold by the tour operator.
The Purchase of Durable Goods
The Purchase of Durable Goods in Tourism
Decisions about durable goods are highly dependent on the range of available information: any new information could lead to anticipation or delay in purchase. For example, a geopolitical crisis in a destination could cause real estate prices to fall, causing many property owners to delay selling their house.
The Tourist’s Investment
If we assume no maintenance cost for simplicity, the user price v* of the house can be written as. In the case of all-inclusive tours, i.e. when the tourist can only decide whether to buy the holiday or not; the choice depends on the comparison between the price of the tour and own booking price.
Learn about the consequences of incomplete information about the price and quality of tourist services on the tourist's decision-making process. As far as tourism use is concerned, the choice among the alternative holidays available depends on the characteristics exhibited by the holiday (or destination) and which, in a different combination, are related to tourist preferences (distance, safety, comfort, environment, entertainment). , culture, etc.).
The Role of Time in the Tourism Choice
The Holiday’s Length Is a Choice Variable
Second, it increases the full price of the holiday, since one day spent away from work has become relatively more expensive in terms of lost income, the so-called substitution effect. Depending on whether AB moves to A0B0 or to A00B00 due to the relative size of the wealth effect, an increase in the wage rate can lead to a decrease (point E0) or to an increase (point E00) in the vacation time at regarding E.
The Annual Leave Is Exogenously Set
In this case, the tourist spends all his time and money on vacation. When the budget constraint is particularly compelling, it is likely that the tourist will have to spend part of the vacation time at home.
The Characteristics of the Tourism Product
Similarly, OG2 represents a combination of the characteristics offered by holiday type 2 as the number of nights N2 increases. Expressions (VII) and (IX) are still consistent with the idea that the characteristic coefficient can be interpreted as the hedonic price of the characteristic, although it is now written as a percentage.
New Products and New Markets
But if the price of the new product is too high, the angle of the boundary line gradually moves inward. The structure of the tour experience is the same: first the visit to the processing units and production stages; later, tasting the output.
The Endogenous Preferences
Multiplicity and Incompatibility
Does he prefer to drive even when drunk as he asks for it. Or would he rather not drive since he had asked his friend to stop him from doing it.
Preferences are Simultaneously a Process and an Outcomeand an Outcome
An example of such a situation is a person who, before spending the night in a bar, asks a friend to forbid him to drive a car if he is drunk, even if he requests otherwise in the end. Given that many tourist behaviors are driven by similar episodes of uncertainty and ambivalence, standard models that only assume transitive preferences cannot explain them.
Preferences that Change Preferences
All the above factors support the approach of endogenous preferences and suggest the idea of building a theory of consumption applied to the tourist that includes both the elements that limit preferences and the factors that shape and change them, and where the research methodology integrates the developed approaches . from Economics, Sociology and Psychology. As a kind of conclusion, the process of forming preferences can be identified by focusing on the so-called image of the holiday (Cooper et al. 2008) and where four stages can be defined: (a) the tourist develops a vague idea of the holiday, e thought of as a desirable activity worth pursuing; (b) the tourist decides when, how and where the holiday should take place and "the image is in focus"; (c) the tourist experiences the vacation so that the image is modified and updated through the experience itself; and (d) memories, regrets and alternative possibilities are reshaped in order to determine the tourist's attitude towards the past holiday, as well as the choice of the future.
Psychological and Sociological Aspects of Tourism ConsumptionConsumption