Segmenting global tourism markets: A panel club convergence approach

This study adopts an advanced panel club convergence approach to analyzing global tourism market segmentation. We empirically examine the convergence process of Turkish global tourism source markets over the period of 2001–2015, covering 81 markets. We further employ a recently developed procedure to test for structural breaks in our data. Three groups of breakpoint-homogenous countries are identified. We then examine within-group club formation and reveal a number of convergence clubs (or segments). The results show the importance of Asian source markets in the post-break periods. This study illustrates the application of structural break and club convergence analysis for segmenting global tourism markets, and generates important implications for tourism organizations to develop global marketing strategies.     

Exploring the regional distribution of tourism and the extent to which there is convergence

In this paper we test the hypothesis of convergence in a set of twelve of the main tourism source markets of Spain over a time period that ranges from January 2000 to September 2015. We analyse the potential convergence by following an econometric strategy consisting of three different methodologies. Firstly, we test for the presence of full convergence in the dataset by means of the panel stationary test developed by Hadri (2000). Next, we conduct a robustness check for the full convergence hypothesis by considering the potential existence of structural breaks in the dataset through the test proposed by Carrion-i-Silvestre et al. (2005). Finally, the hypothesis of club convergence (Philips and Sul, 2007) is also tested. The results point to absence of full convergence even when controlling for structural breaks while three different clubs of convergence are found. We discuss potential policy implications that can be extracted from these results.     

Strategic orientation and performance of tourism firms: Evidence from a developing country

This study investigates whether tourism firms in a developing country, namely Turkey, which adopt one of the four strategic orientations of Miles and Snow (1978), differ based on their financial and non-financial performance. The study results show that there is a difference in both financial and non-financial performance based on the strategic orientations followed by tourism enterprises. Generally, prospectors were found to outperform defenders, whereas analyzers showed a comparable performance to prospectors. The findings of this study imply that in developing countries, tourism businesses may be indifferent when choosing between these two strategies based on their internal characteristics since they yield similar financial results. Specific factors and developments in the macro environment and company-specific factors seem to affect tourism firms' strategic orientation as well as their performance. Better understanding and closer analysis of such factors can help improve the performance of tourism businesses in developing countries. Further research using both perceptual and objective measures is needed to confirm the present results to better assess possible differences in performance among strategic orientations in some other developing countries.     

Navigating through the complex transport system: A heuristic approach for city tourism recommendation

The fast development of machine learning and artificial intelligence has led to a great improvement of the smart tourism recommendation system, however many problems associated with the choice of transport modes in city tourism have yet to be solved. This research attempts to address this issue by proposing a model of customized day itineraries with consideration of transport mode choice. With improved particle swarm optimization and differential evolution algorithm, a nondominated sorting heuristic approach was devised. A case study was carried out in Chengdu, China to examine the performance of our approach. The results show that compared with extant methods, our approach achieves better performance. In addition, our approach can create more sensible, multifarious, and customized itineraries than previous methods. Tourism organizations and mobile map app providers could integrate our proposed model into their existing smart service systems, as part of their e-business or digital strategy for enhancing tourist experience.     

An eclectic investigation of tourism multinationals: Evidence from Greece

This paper analyses determinants of profitability differences between subsidiaries of multinational enterprises (MNEs) and domestic enterprises (DMEs) in the tourism industry, using firm-level data. Previous studies focus on the hypothesis that ownership-specific advantages are a major determinant of performance differences. This paper explores performance issues using the eclectic paradigm configuration of tourism multinationals (NACE = 55), operating in Greece and a panel dataset for 95 firms and 10 years. A quantile regression technique is used to estimate the proposed model. Results indicate that, overall, MNEs out-perform their domestic competitors and are generally larger in terms of size. The study reveals, though, that when breaking MNEs into majority and minority owned, the latter perform better, as they make substantial use of local partners. These partners contribute with knowledge of the local market, which is an important aspect for the tourism industry. Finally, the authors discuss the conclusions and managerial implications of the findings.     

The effects of the military in politics on the inbound tourism: evidence from Turkey

In this paper, we analyze the effects of the military in politics on the number of tourist inflows from 71 countries to Turkey for the period from 1984 to 2014. We use the fixed-effects and the random-effects as well as the dynamic generalized methods of moments estimations. We find that a lower level of the relative military in politics (the difference between the source country and Turkey) positively affects the tourism inflows to Turkey. Specifically, one standard deviation reduction in the index of the relative military intervention in politics in Turkey leads to almost 7% increase in the tourism inflows.     

Successful managerial behaviour for farm-based tourism: A functional approach

Despite the overall growth of rural tourism, not all have benefited equally. This study reports research designed to improve managerial performance in the rural tourism sector in Korea. Six areas are identified as being important: product/service development, business planning and evaluation, promotions, human resource management, networking, and cost reduction. It was found managers in farm-based tourism have primarily concentrated on product/service development, human resource management, and cost reduction. Of these areas, only product/service development and promotions have exhibited a statistically significant effect on real profits and on positive subjective evaluations of financial results. Based on these results, this study suggests that continuous investment in product/service development and promotions should have positive effects on operations and result in increased competitiveness and viability in the Korean farm tourism sector.     

International academic impact of Chinese tourism research: A review based on the analysis of SSCI tourism articles from 2001 to 2012

Between 2001 and 2011 Chinese authors published over 838,000 articles in SSCI rated journals, second only to authors in the United States. However Chinese tourism academics lagged behind their counterparts in obtaining such publications, with only 157 papers in the Thomson Reuters SSCI listing for tourism and hospitality. However in recent years the numbers of Chinese authored publications have significantly increased. The paper argues that access to SSCI ranked publications is important for Chinese tourism academics because (a) it helps inform the world of developments in Chinese tourism, (b) it is a recognition of the standards of Chinese research and a means of improving Chinese research and (c) it provides a motive for international collaboration between Chinese researchers and their counterparts.     

Roots of unsustainable tourism development at the local level: the case of Urgup in Turkey

The main aim of this article is to investigate and explain the roots of unsustainable tourism development at the local level in a developing country, with special reference to Urgup in the region of Cappadocia, Turkey. It was found that the factors that ushered in unsustainable tourism development are beyond the control of local people and authorities. They are largely related to issues at the national level such as the policy of political economy, prevailing national planning approaches applied to tourism, patron-client relationships between decision-makers and related business class alongside the role of international tour operators in the international tourism system. It concludes that achieving sustainable tourism development at the local level in a developing country requires hard political choices, a confident decision-making process and the collaboration of international tour operators and donor agencies.     

Short-run and long-run performance of international tourism: Evidence from Bayesian dynamic models

Measuring the technical efficiency of the tourism industry is essential for evaluating tourism sustainability and reshaping tourism activities. This paper introduces for the first time a new dynamic stochastic frontier model to 1-measure and compare the short-run and long-run technical efficiencies of leading tourism destinations, and 2-provide impulse response functions and persistence measures to trace out the dynamic effect of shocks in technical inefficiency. We develop our model in a Bayesian framework using carefully constructed Markov Chain Monte Carlo (MCMC) techniques. We report efficiency results and persistence scores for individual destinations and discuss how different destinations recover from shocks in tourism performance.     

The price competitive position of Mediterranean countries in tourism: Evidence from the Thomson brochure

Tourism in the Mediterranean region is highly dependent on the few, large, mass market tour operators situated in the North European tourist originating countries. Price competition is intense both between the tour operators and between the Mediterranean countries themselves. This paper uses the hotel package prices listed in the Thomson summer and winter brochures to develop relative price indexes of each Mediterranean country with respect to the Mediterranean average. Indexes are developed in the 3 star, 4 star, 5 star, 7 nights and 14 nights, half-board holiday packages. The prices in the Thomson brochure can be regarded as a unified, internally consistent, set of price data, compiled by the largest UK tour operator and offered to UK tourists desiring a Thomson summer holiday. The change through time of the competitive relative price ranking of hotels, regions and countries listed in the Thomson brochure, may be regarded as an important competitive indicator by industry operators and national policy makers concerned about tourism development.     

An empirical study of inbound tourism demand in China: a copula-GARCH approach

This paper proposes new models for analyzing the volatility and dependence of monthly tourist arrivals to China applying a copula-GARCH approach. A desegregation of the top six origins of China inbound tourists from the period January 1994 to December 2013 is used in this study. The empirical results show that there is a strong seasonal effect in all cases and ?????? some habit persistence on monthly tourist arrival growth rate for South Korea, Russia, the United States (US), and Malaysia. Second, the volatilities of arrival growth rates to China are impacted significantly by their own short- and long-run effects, except for Russia and South Korea. Only short-run shock affects Russian arrivals while only long-run shocks are affecting South Korea arrivals. Third, the conditional dependence among different source countries is found to be positive and significant, but the conditional dependence for all considered pairs is low. Moreover, there is extreme co-movement (tail dependence) between the six major tourism source countries, suggesting the pairwise of international tourist arrivals shows a related increasing or decreasing pattern during extreme events. Implications are discussed and recommendations provided.     

Chaos, crises and disasters: a strategic approach to crisis management in the tourism industry

This paper outlines and discusses a strategic and holistic approach to crisis management for the tourism industry. It notes the growing importance of crisis and disaster management for the tourism industry before exploring the definitions and nature of crises and disasters. The paper then proposes a strategic approach to their management from proactive pre-crisis planning through strategic implementation and finally evaluation and feedback. A discussion of crisis and disaster management literature and studies conducted in the tourism field are also introduced. It notes that although crises and disasters cannot be stopped their impacts can be limited by both public and private sector managers. The paper concludes that the understanding and subsequent management of such incidents can be vastly improved through the extension and application of crisis and disaster management theory and concepts from other disciplines, coupled with the development of specific tourism crisis management research and frameworks.     

Corporate governance,tourism growth and firm performance: Evidence from publicly listed tourism firms in five Middle Eastern countries

This study explores the under-researched relationship between corporate governance and firm performance in tourism companies. We employ instrumental variable modelling using 2SLS for publicly listed firms in five countries in the Middle East. Board independence is found to be positively related to firm performance and stock performance, suggesting that having independent directors among board members will improve overall firm performance. Board size shows opposing results: large boards enhance firm profitability; however, small boards exhibit more efficient stock performance. Finally, we support the tourism-led-growth hypothesis in our selected sample. These findings have empirical implications for policy makers, governments and academics.     

Entrepreneurial bricolage,ambidexterity structure,and new venture growth: Evidence from the hospitality and tourism sector

This study aims to investigate the links between entrepreneurial bricolage, ambidexterity structure, and new venture growth in the Chinese hospitality and tourism industry. Survey data were collected from 345 entrepreneurs involved with new hospitality and tourism ventures in China. Hierarchical regression analysis was used to test the hypotheses of this study. The results indicate that both the combined and balanced dimensions of ambidexterity play mediating roles between entrepreneurial bricolage and new venture growth performance. By exploring the underlying mechanism of the relationship between entrepreneurial bricolage and new venture growth in the hospitality and tourism sector using a comprehensive theoretical model viewed through the lens of ambidexterity, the theoretical and practical implications for management are addressed, and possible directions for future research are discussed.     

Modelling the interdependence of tourism demand: The global vector autoregressive approach

This study develops a global vector autoregressive (global VAR or GVAR) model to quantify the cross-country co-movements of tourism demand and simulate the impulse responses of shocks to the Chinese economy. The GVAR model overcomes the endogeneity and over-parameterisation issues found in many tourism demand models. The results show the size of co-movements in tourism demand across 24 major countries in different regions. In the event of negative shocks to China’s real income and China’s tourism price variable, almost all of these countries would face fluctuations in their international tourism demand and in their tourism prices in the short run. In the long run, developing countries and China’s neighbouring countries would tend to be more negatively affected than developed countries.     

Impacts of seasonal patterns of climate on recurrent fluctuations in tourism demand: Evidence from Aruba

This study estimates the effect of seasonal patterns of pull and push climate elements (rainfall, temperature, wind, and cloud coverage) on recurrent fluctuations in tourism demand from the United States (USA) and Venezuela to Aruba. The seasonal patterns were first isolated from the series using the Census X-12 decomposition method, after which the analysis included panel data unit root testing, panel data regression, and Euclidean distance calculation. The results show that both pull and push seasonal factors of climate were relevant in determining the seasonal variations in tourism demand from both countries. The study derives two theoretical propositions: (1) climate is a significant push and pull factor affecting tourism demand; and (2) tourism demand and climate are bounded by intertemporal climate constraints.     

Information asymmetry in the innovation adoption decision of tourism and hospitality SMEs in emerging markets: A mixed-method analysis

Investment decisions, particularly innovation adoption decisions, can sustain long-term viability of small and medium enterprises (SMEs). However, information asymmetry could limit the ability of SME management to make informed innovation adoption decisions. Even though information asymmetry is a multidimensional construct, prior literature has only focused on financial information asymmetry in such decisions. Therefore, the current study fills the research gap by conducting two separate studies: one analyzes World Bank Group data from 1250 observations in 11 emerging markets, and the other interviews eight SME owners and managers. The findings of the mixed-method studies suggest that financial, business regulation, and court information asymmetry decrease the likelihood of SMEs' product innovation adoption. The study contributes to a more comprehensive understanding of information asymmetry in SMEs’ decision-making rooted in agency theory. Moreover, its methodological contribution lies in measuring information asymmetry with micro-level data.     

The Learning Tourism Destination: The potential of a learning organisation approach for improving the sustainability of tourism destinations

Globalisation, increasing complexity, and the need to address triple-bottom line sustainability have seen the proliferation of Learning Organisations (LO) who, by definition, have the capacity to anticipate environmental changes and economic opportunities and adapt accordingly. Such organisations use system dynamics modelling (SDM) for both strategic planning and the promotion of organisational learning. Although SDM has been applied in the context of tourism destination management for predictive reasons, the current literature does not analyse or recognise how this could be used as a foundation for an LO. This study introduces the concept of the Learning Tourism Destinations (LTD) and discusses, on the basis of a review of six case studies, the potential of SDM as a tool for the implementation and enhancement of collective learning processes. The results reveal that SDM is capable of promoting communication between stakeholders and stimulating organisational learning. It is suggested that the LTD approach be further utilised and explored.     

Obstacles to achieving cross-border tourism governance: A multi-scalar approach focusing on the German-Czech borderlands

This paper aims to identify distinctive obstacles to the establishment of tourism destination governance in both transnational and within-country borderlands. Analysis of the German-Czech borderlands, a region also incorporating within-country borders between three German federal states, indicates the multi-scalar and political contestations of cross-border tourism collaboration. Local tourism projects are generally successful, both on a transnational German-Czech level and between the German states of Bavaria, Saxony and Thuringia. However, structural cross-border destination management does not exist because of (transnational) multi-scalar institutional alignment problems and (internal) tourism-specific destination-level power contestations. Understanding destination management processes in borderlands, therefore, requires: (i) explicit multi-scalar analysis; (ii) recognition of both transnational and within-country contexts; (iii) more cross-pollination between tourism planning and cross-border governance research.