Expanding our understanding of cruise visitors' expenditure at destinations: The role of spatial patterns,onshore visit choice and cruise category

Cruise tourism is an important and growing source of visitors to destinations. To expand our knowledge of this phenomenon, this study incorporates three new drivers into the analysis of the expenditure patterns of cruise passengers at destinations, namely, spatial intra-destination behavior (single node, multiple node, or hinterland), onshore visit choice (independent or guided), and cruise category (standard, premium, luxury, or exclusive). The study uses quantile regression to unearth the intricacies of the proposed relationships and a dataset that combines GPS tracking technologies and traditional surveys. Results suggest that the mobility pattern, onshore visit choice, and time spent at a destination of cruise visitors have significant effects on their expenditures. However, these effects vary along with the level of expenditure, whereas cruise category does not exert a clear effect on expenditure. The implications for destination management organizations are also discussed.     

A meta-analysis of the direct economic impacts of cruise tourism on port communities

This research provided a meta-analysis of the direct economic impacts of cruise tourism, using a meta-regression, an Ordinary Least Square model, a fixed-effects model, and Sobel-Goodman mediation tests. The results revealed a significantly positive coefficient between direct economic impacts and: number of passengers, number of crew members, number of cruise lines, expenditures per passenger, and expenditures per cruise line. It was further found that cruise lines had significant mediation effects on the expenditures per passenger and per crew member at port destinations. Compared to North American markets, the direct economic impacts of cruise tourism on ports in the Caribbean markets and other emerging markets were significantly lower.     

Tourists' spending and adherence to shopping plans: The case of the christmas market in Merano,Italy

The present paper investigates the determinants of tourists' expenditure by categorizing tourists based on their mental budgets. Individuals can be divided into three categories based on the difference between their mental budget and actual expenditure: underspenders, on-budget spenders, and overspenders. Estimation of the empirical model is performed based on data collected through a survey of visitors to the Christmas Market in Merano, Italy during Advent in 2011. The estimation is performed with the Heckman estimator, ordered probit selection rule, and linear regression. We find that the spending patterns of visitors belonging to the three identified categories differ significantly. Analyzing visitors’ expenditure based on the proposed categorization allows us to identify category-specific factors and develop management strategies for each category. The managerial and theoretical implications of the results are discussed.     

The non-inclusive nature of ‘all inclusive’ economics: Paradoxes and possibilities of the resort complex

The ‘All Inclusive’ (AI) concept has revolutionized package hospitality services and captured the attention of many industry stakeholders. Scholars have mostly investigated AI from the marketing perspective, whereas the economic ramifications of this type of product, for both hospitality operators and local communities, are still a barren landscape. Using a mixture of quantitative analysis techniques, including a two-step cluster analysis and econometric modeling, the study aims to enhance our conceptual capital pertaining to the economic impact of AI for local communities. The study focuses on overall tourists' spending, both within and outside their accommodation, with expenditure segmented into seven study-specific categories that highlight the economic specificities of AI. Findings, of interest to industry stakeholders, revealed the problematic and ambiguous status of AI provision in Cyprus, whereas actions, espousing the principles of cluster theories, that could maximize the economic contribution of AI to local economies are suggested.     

A Logistic Regression Analysis of Discount Receiving Behavior in the Cruise Industry

Abstract

This exploratory study analyzed the relationships between a number of selected demographic and trip-related variables and cruise vacationers' discount receiving behavior. Cruise vacationers' discount usage was measured as a dichotomous variable (i.e., discount received-discount not received), and hence logistic regression was employed to test the hypothesized relationships. Among the ten independent variables, three variables, namely age, prior experience with cruise vacations, and gender were significant predictors of discount usage. Our study results indicate that younger female vacationers are more likely to use discounts compared to older male vacationers. Furthermore, experienced cruise vacationers seem more prone to taking advantage of discount prices than novice cruise vacationers. Findings of this study suggest that cruise marketers might want to focus on younger, experienced female cruise vacationers in their promotional efforts.     

Economic impact of cruise activity: the case of Barcelona

ABSTRACT

This article shows the methodology and the main figures of the local and regional economic impact generated by cruise activity. This article is pioneering in combining different issues: estimating the impact of the cruise port activity, presenting these impacts disaggregated at a sectoral level, using a rigorous methodology and carrying out extensive fieldwork. It is demonstrated that all sectors, not just traditional tourism-related sectors, benefit from cruise tourism. In order to test and apply our methodology we focus the analysis on the Port of Barcelona, which has become the leading cruise port in the Mediterranean area.     

The economic impact of tourism at the port of Miami

The total disaggregated economic impact that cruise industry tourism has on Dade County is examined in economic terms using a regional input-output model developmen by the Regional Science Research Institute. The analysis indicates that cruise industry tourism at the Port of Miami had a total economic impact on Dade County of $546 million in 1982. The total direct, indirect and induced number of jobs generated by the cruise industry and cruise passengers is 21,627. Wages totalling $271 million were paid in 1982 in Dade County as a result of the total impact of the cruise industry. Finally, the model revealed that cruise industry tourism contributed $264 million to the county's Gross Regional Product in 1982     

Mediation Between Tourism Contribution and Economic Growth in the Greater Mekong Subregion

The objective of this paper is to determine the mediation between tourism contribution and economic growth in the Greater Mekong Sub-region (GMS) (i.e. Cambodia, Laos, Myanmar, Thailand and Vietnam). The sample period is semi-annual data from 1995 to 2013 and is also estimated by bootstrap panel cointegration, Panel Fully Modified Ordinary Least Squares method and the Sobel test. The results show that the variables are cointegrated as three models; economic growth is running to tourism's total contribution to GDP and international tourism expenditure for passenger transport whereas international tourism expenditure for passenger transport is running to tourism's total contribution to GDP. Therefore, this study finds that international tourism expenditure for passenger transport is a mediator and has partial mediation. The GMS needs to develop every economic sector and improve the potential of the transport sector as a regional integration project which supports the sustainable development of the region.     

The effect of agritourism experience on consumers’ future food purchase patterns

Recent studies on agritourism share a common voice in that the economic benefit of agritourism to farms is significant but rather small. However, the majority of studies examine only the short-term economic impact of agritourism. This suggests that the potential long-run economic impacts of agritourism may not have been empirically investigated yet, leading to underestimation of its net impact. Meanwhile, theories on mere exposure and product familiarity suggest that agritourism may lead tourists to change their agriproduct purchasing patterns after the experience. Thus, this study examines the effect of agritourism experience on consumers' future grocery purchase patterns. Household-level consumer panel data on grocery expenditure is estimated through the Almost Ideal Demand System (AIDS) approach. The results indicate that agritourism experience significantly alters consumers' expenditure patterns in the food categories of grain, vegetable, fruit, meat, and fish. Implications for research and practice are discussed along with the findings of the study.     

An Analysis of Cruise Ship Rating Guides

ABSTRACT

Cruise vacations are a relatively new tourism product that has evolved from the maritime passenger transportation industry. An introduction to the Cruise industry is followed by an analysis of cruise guides with star ratings, which are widely available in bookstores and libraries. Although these appear well researched including a tremendous amount of information, each guide's rating system is different and can confuse readers' considering a vacation cruise. A linear regression of the star ratings for each of four popular guides shows that as much as 70% of the ratings are explained by only two variables: year of launch and space/passenger ratio. It was found that consumers who wish to compare ships efficiently could do so by simply dividing the space/passenger ratio by 10.     

Assessing the economic impact of a UNESCO World Heritage designation

Grand Pré Historic Site in Nova Scotia (Canada) is in the process of applying for a United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage Site (WHS) designation. Conventional wisdom is that such a designation would generate public awareness and increase visitation to the site. The goal of this paper is to estimate the impact of a WHS designation on tourist visitation and related expenditures. Various tourism statistics (covering 1990–2008) for Nova Scotia and its only other established UNESCO site – Lunenburg (designated in 1995) – served as data. Regression analysis produced an estimate of the tourist visitation impact that a WHS designation had on Lunenburg, and could be expected to have on Grand Pré. An increase of 6.2% in tourist visitors due to a WHS designation was estimated. Survey data collected at Grand Pré provided average spending per visitor. The economic impacts were analyzed under both a projected and a historical scenario of visitation. Based on its 10-year historic visitation average, a WHS designation for Grand Pré would generate an increase of 3000 visitors per year. These visitors would generate spending of approximately $200,000 annually in the local economy. Such spending would provide a boost to the local tourism industry, which has experienced significant decline in recent years.     

Estimating the Economic Contribution of Visitor Spending in the Kruger National Park to the Regional Economy

Tourism has been labelled the economic driver of the 21st century due to the multiplier effect of tourist spending and the linkage of this industry to almost all other industries. This paper aims to estimate the economic impact of visitor spending in the Kruger National Park. The following objectives are set: (1) to determine the spending pattern of a typical tourist visiting the Kruger National Park, (2) to determine the contribution of tourists visiting the Park to the economy of the region. The methodology used includes both a survey and an input-output analysis. A survey conducted in June 2002 was used to determine the spending pattern of tourists visiting the Park and together with additional secondary data, were used to determine the contribution of visitor spending in the Park to the economy of the region. The results of the survey indicate that tourists spend most of their money on accommodation and transport in the Park. The South African National Parks (SANP) has created an environment that induces spending, but recommendations are made to encourage even more spending by tourists, thereby enhancing the economic benefits of the Park.     

Expenditure-Based Segmentation of a Mountain Destination Tourist Market

Although tourism is one of the most dynamic economic activities worldwide, few studies have been conducted on the potential role of market segmentation based on visitors' expenditure level at the destination in order to define strategies for maximizing the economic benefits of tourism for local destinations. This study extends the research undertaken in this area by identifying different clusters of visitors, in a Portuguese mountain destination, according to the level and patterns of visitors' expenditure during the visit. Four distinct segments were identified and show statistically significant differences regarding their economic relevance for the destination, sociodemographic profile, and trip behavior. This study contributes to the discussion of analytical marketing tools available in the context of destination planning, aiming at the definition of strategies that may maximize the economic contribution of tourism for local economic development.     

Holiday Home Owners,a Route to Sustainable Tourism Development? An Economic Analysis of Tourist Expenditure Data

Although sustainable tourism comprises economic, social and environmental aspects, economic analysis has been less evident in the literature. This paper takes an economic perspective to evaluate the contribution of holiday home owners to a local economy. Tourism destinations which are at the mature stages of the tourism lifecycle wish to maximise revenue from tourism while minimising costs such as overcrowding. A prime objective has to be to attract the more economically valuable tourists. In this paper an analysis of North Wexford in Ireland poses questions such as: How does the holiday home owners’ expenditure in the local area compare to that of traditional tourists? Do they purchase different types of goods? What levels of local expenditure do holiday home owners engage in for the upkeep or development of their second properties? What are the implications of these findings? The results show that there are clear economic benefits for an area that people deem attractive enough to build or purchase a holiday home in. This type of tourist has a high annual spend relative to other tourists and much of this expenditure seems to be concentrated in the local area. These findings need to be incorporated into the broader debate regarding the advantages and disadvantages of holiday home owners and the possibility of them comprising a route to sustainable development for local tourist areas.     

The Influence of Food Expenditure on Tourist Response to Festival Tourism: Expenditure Perspective

Festival tourism, which combines the theme of a festival with the local characteristics of an area, has become an extremely attractive marketing method in recent years. In addition, local food and beverages are items that many visitors enjoy consuming and that can become attractions in their own right. The aims of this study are: (a) based on expenditure theory, to explore how spending on food and beverages and other items such as accommodations and transportation influences intentions to revisit and make positive recommendation; and (b) to examine whether or not tourists with different lifestyles use or experience different sources of information, evaluation criteria and travel expenses. A questionnaire survey was conducted using visitors to the 2009 Penghu Sea fireworks festival, and 308 valid samples were collected. The results were as follows. First, food and beverages had a significant positive influence on revisit and recommendation intentions. Second, the total expenditure on a tourist visit had a significantly negative effect on revisit and recommendation intentions. Third, there were statistically significant differences with regard to information searching, evaluation criteria and tourism expenditure among tourists with different lifestyles. Based on these results, we can conclude that food and beverage expenditure during festival tourism is an important factor in whether or not tourists plan to revisit an area and recommend it to others. The findings also show that more tourists can be attracted if festivals are well suited to local conditions and characteristics (such as the availability of seafood in the example examined in this work).     

Are sustainable tourists a higher spending market?

Resistance to sustainability practices often stems from the industry's view that sustainable tourism requires a profitability tradeoff where the additional costs associated with sustainability do not pay off in increased economic returns, yet few studies have been attempted to prove or disprove this viewpoint. This study analyzed spending patterns and length of stay of visitors to Montana, USA to determine if strong geotravelers (higher sustainable behaviors) were different than those with less sustainable behaviors. Results found that total trip spending by strong geotravelers (US $1164) was significantly higher than the overall spending of both moderate (US $866) and minimal geotravelers (US $668). These findings suggest that sustainable travelers are a travel market to be reckoned with in the tourism marketing and business world. The combination of their pro-sustainable behavior and increased spending provides evidence of a market segment in which destinations can benefit.     

Estimating the Economic Impact of Event Tourism

Abstract

Tourism has become an important economic sector in many parts of the world, and many regions, states, and local areas have identified expenditures by visitors as a potential source of economic growth. Because visitor spending can contribute to the local economy, many communities seek to enhance tourism and visitor-oriented activities. As a result, estimates of the economic impact of event tourism are of interest to a wide variety of interested parties. Economic impact analyses of sports facilities and other entertainment events have come under increasing criticism in recent years. At the same time, visitors to sports events, festivals, and other visitor-oriented and event related activities can produce very substantial economic impacts for host communities. This article examines key considerations and issues that affect and are critical to reliable estimates of the economic impacts of events and event tourism.     

The contribution of tourism to the economy of Ireland in 1990 and 1995

The paper describes how input-output modelling methods have been used, to estimate economic impacts of tourism expenditure in Ireland and passenger fares during 1990 and 1995, measured as GNP, employment, government revenue and Balance of Payments credit. Full details of calculating 1990 impacts are shown in an appendix to the main text. Corresponding 1995 impacts are presented without background details. These tourism impacts, as shares of national aggregates, are in the range 7–11%, which is worthwhile. Per IR£ million receipts, international tourism shows a higher GNP impact than aggregate exports of goods and services.     

Marginal economic impacts of inbound tourism to Taiwan and policy evaluation†

This paper presents the economic impact estimation for international visitors to Taiwan using an Input–Output Model to demonstrate the differences of economic contribution by market segments. Economic impacts are compared based on visitor segments by country of residence and travel purpose. The results indicated that high spenders contributed two to three times more expenses in Taiwan than low spenders. In 2000–2001, excluding airfares, business visitors from North America (US$1,360), Japanese sightseers (US$1,323) and Singapore/Malaysia sightseers (US$1098) were the top three segments in terms of per person per trip expenditure, whereas tourists from Korea with a purpose of visiting friends and relatives spent approximately US$314 per party per trip. Type I multipliers on sales, personal income and value added were similar across all visitor segments. Type I jobs to sales multiplier, however, had stronger variation by segments, depending on the relative composition of different items/services that visitors consumed during the trip. Policy implications are proposed for the Taiwan national tourism policy, “Doubling Tourist Arrivals Plan”, which aimed to increase inbound tourism from 2.7 million person visits in 2002 to 5 million person visits by 2008. It is suggested that multiple indicators, such as length of stay, segment shares, and daily spending by individual visitor segments, should be concurrently incorporated in the policy formulation and evaluation process. Relying on one measurement objective, such as 5 million yearly visits, is inadequate in determining the overall achievement and efficiency of tourism policies.     

The impacts of temporary but anticipated tourism spending: An application to the Glasgow 2014 Commonwealth Games

An extensive literature attempts to identify the economic impact of tourism expenditure. While Input-Output methods have been widely applied these may not always be appropriate for such applications and there is a growing use of more flexible Computable General Equilibrium (CGE) approaches. This paper uses a multi-period Scottish CGE model to estimate the system-wide effects of the temporary tourism expenditure related to the Glasgow 2014 Commonwealth Games. We quantify the sensitivity of our results to model specification, focusing in particular on how investment and consumption decisions are made and shifted over time to accommodate the temporary tourism shock. As part of this analysis we identify the pre-announcement period that optimises the present value of the economic impact. Whilst the empirical results apply to a specific event, our results have implications for similar analyses applied to mega events and other temporary phenomena affecting tourism expenditure, such as terrorism attacks or epidemics.