Restoring tourist confidence and travel intentions after disasters: some insights from a rejoinder to a series of unfortunate events in Malaysian tourism

Many countries face a decline in tourist confidence and reduced travel intentions after disasters. However, Malaysia – a country that experienced a series of aviation tragedies throughout 2014 – encountered an overall increase in inbound tourists and monetary receipts. This article more closely examines the effects of these unfortunate events on Malaysian tourism and identifies several strategic avenues that can contribute to restoring tourist confidence and reigniting tourist interest in travelling to disaster-stricken countries.     

Modelling dependence between tourism demand and exchange rate using the copula-based GARCH model

This paper investigates dependence between tourism demand and exchange rate, using the case of China, and from a new perspective by using copula–GARCH models. The empirical results show that the volatility of exchange rate is not a determinant factor in fluctuation of China's inbound tourism demand from the countries being studied. Furthermore, only Russia exhibits risk-adverse behaviour with extreme SUR depreciation, or CNY appreciation associated with an extreme decline in arrivals. Third, introducing the tail dependence and dynamic dependence between growth rates of tourism demand and exchange rate add much to the explanatory ability of the model. The findings of this study have important implications for destination manager and travel agent as it helps to understand the impact of exchange rates on China inbound tourism demand and provide a complementary academic approach on evaluating the role of exchange rates in the international tourism demand model.     

A nonlinear approach to the tourism-led growth hypothesis: the case of the MERCOSUR

This paper analyses the tourism-led growth hypothesis for the four countries of the MERCOSUR regional trade block. By applying nonlinear techniques, we explore whether tourism activity leads – in the long run – to economic growth, or, alternatively, economic expansion drives tourism growth, or indeed a bidirectional relationship exists between the two variables. To this end, non-parametric cointegration and causality tests are applied to quarterly data for the period 1990–2011. We show the existence of a cointegrated relationship between real per capita gross domestic product and tourism expenditure for all countries. Moreover, the linearity of this relation is rejected for both Argentina and Brazil (economies with a relatively diversified structure). The non-parametric causality tests confirm in all cases the causality from tourism to growth. Meanwhile, only for Uruguay and Argentina causality also goes in the inverse direction (from growth to tourism). Finally, the paper compares the results of the nonlinear approach with those obtained by using the traditional linear methodology.     

Tourism flows between India and Singapore

The tourism industry has become increasingly important as a source of revenue and employment for countries in Southeast Asia. Within the Southeast Asian region, intraregional travel has also seen an upsurge since the Asian Financial Crisis of 1997. More attention is also being paid to attract other Asian tourists from China, India, Japan and South Korea to the region. Competition to be tourism hubs in the region has seen countries such as Singapore developing an array of incentives to entice inbound foreign tourists to its shores. The aim of this paper is to examine the growing importance of India as a source of inbound tourists for countries in Southeast Asia and in particular Singapore. India is an apt case study because of its long historical and cultural links with the region. Another main motivation for examining inbound tourists from India is India's engagement with the Southeast Asian region through its ‘Look East’ policy. Following from its economic reforms and liberalisation of 1991, India has sought to strengthen economic links with ASEAN member states through a range of economic sectors including tourism. The 1991 Indian economic liberalisation has also created an upsurge of Indian business travellers who are exploring investment and business opportunities in the Southeast Asian region. With India's economic liberalisation of 1991, an expanding middle class has come to view foreign travel as a necessity. In turn, ASEAN member states, such as Singapore in particular, which is heavily dependent on its services sector, including tourism, for revenue, have chosen to regionalise its tourism operations by collaborating and investing in projects in India to woo more Indian tourists. Competition in the tourism sector among ASEAN countries has increased the urgency for Singapore to reinvent itself to attract foreign tourists and implement a number of initiatives to maintain its share of the tourism market. Copyright © 2003 John Wiley & Sons, Ltd.     

Driving factors of the hospitality industry cycle

This study applies a Markov regime-switching model to examine Taiwan's hospitality industry based on the gross domestic product data of the hospitality industry from 1982Q1 to 2012Q2. On understanding the characteristics of Taiwan's hospitality industry, the study performs Granger causality tests to identify the driving factors of Taiwan's hospitality industry cycle. Two regimes of the hospitality industry cycle – a high-growth regime (HGR) and a low-growth regime (LGR) – are detected. Specifically, the average growth rate of HGR (LGR) is 3.01% (2.17%) and the standard deviation of HGR (LGR) is 0.69% (0.19%). The probability of the hospitality industry staying in HGR (LGR) is 98.25% (97.52%) and the expected duration of HGR (LGR) is about 57 (40) quarters. Further, the inbound tourism market growth is found to be a significant driving factor that can cause the hospitality industry to remain in the HGR. Valuable information and policy implications are provided to guide hospitality business managers and tourism policy-makers.     

Impact of economic policy on international tourism demand: the case of Abenomics

Since the 2008 global financial crisis and resulting recession, many countries have been following unconventional monetary policies. Little information is known on how these policies may influence tourism demand. This study starts to fill this gap by investigating the impact of the Japanese economic policy known as Abenomics on South Koreans’ travel to Japan, the largest inbound market for Japan. Per capita gross domestic product, relative prices, and exchange rates are significant determinants of Japanese inbound tourism. As these variables have been influenced by Abenomics, one can infer that Abenomics is associated with a significant increase in tourist arrivals from South Korea. Findings highlight the importance of government economic policy in stimulating international tourism demand through its impact on the economy.     

Aviation’s inclusion in international climate policy regimes: Implications for the Caribbean tourism industry

Nations with tourism dependant economies are becoming increasingly concerned about the inclusion of aviation in greenhouse gas mitigation policy for international bunker fuels and more recently adaptation policy proposals. The central concern is that such policies will increase the cost of traveling by air, therefore reducing visitor arrivals to long-haul, tourism-dependent destinations, often small island developing states. This study used a tourism arrivals model to examine the implications of currently proposed climate policies for the world’s most tourism dependant region – the Caribbean. Results indicate that under current proposals for both mitigation and adaptation focused climate policy, reductions in tourist arrivals from the major markets of Europe and North America would be negligible versus business as usual growth projections Only under the most stringent mitigation policy scenario. Which may portend a post-2020 policy regime, is a significant decrease in tourist arrivals predicted. Of the climate policies assessed, the adaptation policy had the potential to provide greater economic benefits to the Caribbean region.     

The Role of the Tourism Industry in Transforming a Rentier to a Long-Term Viable Economy: The Case of Bahrain

During the past four decades, the tourism industry has emerged as one of the leading industries worldwide. In the Arab countries, however, despite its huge potential, the tourism industry is still in its infancy phase. With the exception of only a few countries, until recently most of the Arab countries almost ignored the economic potential of tourism. Since the 1990s, their traditional attitude of neglect toward the tourism industry has undergone a transformation, a fact that was not lost by the Gulf Cooperation Council (GCC) countries. Thus, since the mid-1990s, all of the GCC countries, without exception, have been trying to promote their tourism sector, which soon became a prominent economic sector. The paper concentrates on one tourism development case – that of Bahrain – the least ‘rentier’ within the GCC oil-economies. The main research question addressed by this paper is to what extent Bahrain has introduced a cohesive and economically viable tourism industry that contributes to a more sustainable economy of this country. This exploratory paper examines Bahrain's motivation to promote tourism; its tourism comparative advantage; the major difficulties facing Bahrain's further tourism expansion; and the overall role of the tourism industry in the Bahraini economy.     

Modelling inbound international tourism demand to Portugal

In this paper the Johansen cointegration analysis of time series is used to model the Portuguese inbound international tourism demand from five countries of origin—France, Germany, The Netherlands, Spain and UK. This approach examines the long‐run relationships between the demand for holiday visits and the variables that affect holiday travel such as income, destination prices and travel costs (airfares and road costs). Demand functions, for each country of origin, are estimated using annual data on tourism flows from 1975 to 1997. Copyright © 2002 John Wiley & Sons, Ltd.     

Does freedom of the press enhance inbound tourism?

ABSTRACT

This paper examines the effects of the freedom of the press on inbound tourism in 160 countries for the period from 1995 to 2016. By using the fixed-effects, the Hausman–Taylor, and the dynamic panel data estimation techniques, we show that a higher level of the freedom of the press promotes inbound tourism. The main findings are robust to consider the countries at the different income level, the inclusion of the various control variables, using the different measures of the freedom of the press, excluding the outliers, and excluding the observations in the different regions.     

A new take on an old structure? Creative and slow tourism in Krakow (Poland)

The contemporary tourism market trends indicate an increasing need for the individualisation of tourist experience and necessitate a move away from the standardisation of tourism products, including those offered within the cities that primarily market their cultural heritage. The concept of creative tourism as a way of practising cultural tourism is a response to the changing needs and expectations of tourists. This is because it offers non-traditional uses for the cultural potential of cities. This article attempts to embed creative tourism in the overall tourist product using an example of a historic city – Krakow. The authors examine the development of tourism products in Krakow, focusing primarily on cultural and historical heritage tourism and secondarily on new forms of tourism that have emerged, such as creative tourism and slow tourism. They analyse this issue in terms of districts – traditional and new tourist areas, indicating the potential for tourism growth.     

Platform coopetition in the tourism industry: conflicts and tensions caused by the closure of Booking.com in Turkey

In March 2017, as a result of a precautionary interim decision made by the courts based on the case relating to ‘unfair competition practices’, Booking.com closed its platform for inbound tourism in Turkey and ceased operations. This was the first instance of an online booking platform halting access for inbound bookings for the domestic market. This platform-based relationship involves both cooperation and competition, and thus this paper identifies this relationship as platform coopetition. Based on the governance network theory and employing a case-study approach, the Booking.com case is examined from the viewpoint of tourism coopetition from two perspectives: industry-wide and agent-specific. The paper provides an analysis of these perspectives and the past and on-going process of Booking.com’s platform closure. The constitutive dynamics this case endangers the coopetitive environment of the tourism industry and thus creates destructive uncertainties, especially for small hotels. This analysis also reveals the issues in terms of political representation for digital service platform companies.     

Travel and tourism competitiveness index: The impact of air transportation,railways transportation,travel and transport services on international inbound and outbound tourism

The objective of the study is to examine the impact of air transportation, railways transportation, travel and transport services on international inbound and outbound tourism in a panel of 19 tourists - oriented countries, over a period of 1990–2014. By applying principal component analysis, the study constructs travel and tourism competitiveness index for inbound and outbound tourism. The main constructs of inbound tourism index include international tourists' arrival, tourism receipts, receipts of passengers' transports items and travel items while the constructs of the outbound index include international tourists' departure, tourism expenditures, and expenditures for passengers transport and travel items. The result of panel Fully Modified OLS (FMOLS) regression shows that the presence of air transportation, railways transportation, and trade openness positively affect inbound tourism index, while travel and transport services negatively affect tourism competitiveness index. The causality results confirm the bidirectional relationship between inbound tourism, air transportation, railways passengers carried, trade openness and travel and transport services, while there is a unidirectional causality running from inbound index to railway goods transported, from air transport freight to trade factor, and from travel services to air transport freight. Outbound tourism index confirmed the bidirectional causality relationship with air transportation, railways transportation, and travel and transport services, while the causality running from outbound index to trade factor, from air transport passenger carried to travel services, and from railway goods transported to trade and transport services, which support the unidirectional causality relationship between them. The variance decomposition results show that air transportation freight is the contributor that largely influences inbound-outbound tourism, while railways passengers carried and trade openness has the least share to influence inbound and outbound tourism index for the next 10-year period. The impulse response function indicates that air transportation, railways transportation, trade openness and travel services will positively impact on inbound truism while travel and transport services will positively affect outbound tourism for the next 10-year period. The study concludes with the importance of transportation sector that deem desirable to promote tourism worldwide. The concentration of different modes of transportation including air transportation, railways transportation, and travel and transport system would helpful to advance international tourism.     

The determinants of inbound tourism to Malaysia: a panel data analysis

Malaysia has experienced a significant increase in tourist arrivals over the past 10 years. The challenge is to sustain this growth and therefore it is important to understand the factors influencing inbound tourism to Malaysia. This paper investigates the economic and non-economic determinants of international tourist flows to Malaysia using the generalized method of moment. The annual panel data set includes the number of arrivals from 33 countries during the period 2000–2012, and the number of possible explanatory variables. It is found that habit persistence (word of mouth), income, hotel room and political stability have a positive impact on tourism demand for Malaysia. Also, results indicate that the estimated coefficients of substitute tourism price in the model are negative. This implies that the five alternative destinations are complementary destinations to Malaysia. In addition, the dummy variable for Visit Malaysia Year in 2007 and severe acute respiratory syndrome in 2003 had positive and negative impacts on tourism demand for Malaysia, respectively.     

Tourism and economic development: analysis of geographic features and infrastructure provision

The idea of committing to tourism as a tool for economic development – a decision supported by a large number of countries and international organizations – is becoming widespread, since the potential of tourism has been advocated, without a doubt, to improve the socio-economic conditions of host countries. However, in recent years, a critical school of thought has emerged that questions the universal validity of tourism as a development tool, and therefore calls into question the solution implemented by these countries and institutions. In this context, this research study, after analysing the validity of each one of these two schools of thought, advocates for an intermediate situation based on the premise that there is no automatic relationship between the two dimensions, but instead a country must meet certain characteristics in order for this link to occur. In this sense, since the scientific literature has shown the importance of geography and infrastructure provision in improving the living conditions of the population, the aim of this work is to identify what are the determining factors that help or hinder the transformation of tourism growth into economic development.     

Panel evidence on the impact of tourism growth on poverty,poverty gap and income inequality

Using a panel of 13 tourism-intensive economies for the period 1995–2012, this paper shows that rising growth in tourism which is proxied by tourism receipts to GDP ratio has an impact on poverty conditional on the poverty measure used. Using a panel Vector Autoregression method, there is little evidence to suggest that growth in tourism reduces headcount poverty. However, the poverty gap measure shows that the amount of money needed to help the poor out of poverty is significantly reduced. Based on different types of Gini coefficient, the results fail to find an improvement in income inequality resulting from tourism growth. Alternative measures such as relative poverty and poverty gap may be considered to better assess the impact of tourism on the poor.     

Estimating the effects of regional political climate on Russian tourists to Spain

Regional political climate has become an increasingly significant force influencing travel behaviour in many tourist destinations. This paper attempts to address impacts of regional political stability on Russian inbound tourism into Spain within a demand model framework and using a cointegration approach. The results show that visa openness as well as political instability and civil unrest in substitute destinations attract more Russian tourists, boosting economic growth and reducing unemployment rates in Spain. On the contrary, international political confrontation results in disadvantage to Russian tourism demand to Spain.     

Spillover Effects of Tourism Consumption Between Galicia and the Rest of Spain

Analysing the spillover effects is crucial for small and open regions where productive leakages are relevant, as could be the case of Galicia within the Spanish context. Therefore, the main aim of this paper is to examine the spatial interactions between Galicia and the rest of Spain economies that tourism consumption involves, for the period 2001–2007. An interregional input–output model is applied for the year 2005. Additionally, three different kinds of tourism consumption are considered: two inbound and a domestic one. Among other results, we found that around 1% of the gross value added of the small economy depends on the tourism consumption in the rest of the country. Copyright © 2013 John Wiley & Sons, Ltd.     

Tourism and climate change: a review of threats and adaptation strategies for Africa

The intersection of tourism and climate change has seen significant research over the past two decades, focusing particularly on issues of mitigation and adaptation in the global North. Research output has predominantly been centred on the Mediterranean and Nordic countries and number of localities in North America. The global South has seen significantly less investigation, despite having significantly lower adaptive capacity to the impacts of climate change, and numerous countries with rapidly growing tourism sectors. The African continent specifically has seen appreciably less research than other countries in the global South, despite arguably having the lowest adaptive capacity and projections of severe impacts of climate change to the tourism sector from temperature increases, changes in precipitation volume and sea level rise. This paper therefore presents a review of the existing literature on adaptation strategies of tourism sectors and participants in African countries. The crucial argument of this paper is in highlighting the need for an increase in research into the threats of climate change to tourism in African countries, identifying future research trajectories. The development of such knowledge would assist in the development of adaptation and mitigation strategies for these most vulnerable tourism economies.