Economics of tourism investment in data scarce countries

Ex-ante economic impact analyses are required to demonstrate the development impact and viability of multilateral loans. These assessments are often performed under tight timelines, in data scarce environments and with limited opportunity for primary data collection. This paper develops a framework for assessing tourism interventions under these challenging conditions and evaluates a US$15 million tourism investment in Belize. This paper contributes to the literature by: (i) developing a generalizable approach to building economy-wide models in data scarce environments; (ii) generating realistic expectations of agent responses with quasi-contingent valuation and auto-regressive integrated moving average methods. Applying the first economy-wide model for Belize, results show that the investment would stimulate GDP by 3% and reduce unemployment from 12% to 10% by 2040.     

Clusters in regional tourism An Australian case

With changing industrial patterns in regional Australia, tourism has gained increasing currency as an agent for regional economic development. This paper investigates the applicability of cluster theory in supporting the movement from comparative advantage to competitive advantage for four regional towns located on the Murray River in Australia. Thus far cluster analysis has largely been applied in the manufacturing industry. This paper reports on its potential as an analytical tool in service-based tourism and, through the cases studied, identifies vital attributes of clusters that are lacking in the least economically successful region in the study area.     

Hospitality trade development in Canada : Mergers, acquisitions and foreign investment

Over the last few years there has been a considerable amount of merger and acquisition activity in the Canadian hospitality industry. This includes major investments made either directly or indirectly by foreign-based corporations. Historically, there has been a disproportionately small share of total foreign investment aimed specifically at tourist-related industries; however, there have been some high profile developments recently. There is no dominant foreign country although the USA and Pacific Rim countries (especially Japan and Hong Kong) are the most prominent. Interestingly, while domestic and foreign activity is widespread, there have been significant acquisitions and investments by Canadian companies outside Canada's borders.     

A gravity model of foreign direct investment in the hospitality industry

This paper investigates the determinants of FDI activity in the hospitality industry using a gravity model. It draws on a new and unique database of 2420 FDI projects carried out by 50 parent countries in 104 host countries from 2005 to 2011. Results show that the number of hotel FDI projects is significantly and positively related to the market size and the existence of a common language while increases in the level of business regulations, tax rates or minimum wages have the opposite effect. Geographical distance and socioeconomic factors are not relevant. Comparing the number of predicted FDI projects with those actually carried out, we find that the United Kingdom, India, and Mexico are particularly successful in attracting hotel FDI projects, whereas Russia, Germany, and the United States host much fewer.     

Management models and differential agency challenges arising in Australian multi-titled tourism accommodation properties

This paper reports the interview findings of a study designed to appraise differential agency challenges arising between unit owners and resident managers in three distinct types of strata titled tourism accommodation (STTA) operation. The three distinct contexts of STTA management delivery investigated are: 1) management service provision by small independent owner-operators in a single STTA apartment complex, 2) management service provision in strata titled hotels, and 3) management service provision by organizations that manage multiple STTA apartment complexes. Using the four dimensional agency theoretical framework developed by Lambert (2001), it has been found that the potential for agency challenges appear to be greatest in the context of an STTA complex managed by a small independent owner-operator.     

Halal tourism: Emerging opportunities

The main purpose of this paper is to raise awareness about the growing Halal tourism market segment and identify the fundamental needs of this segment. What is Halal tourism? What are the sources that inform about Halal tourism? What is the potential of Halal tourism? How does one attract this potential segment? These are some of the questions to which a response is provided in the paper. The methodology is largely reliant on secondary information. The paper also makes some recommendations which have implications for the practitioners.     

The importance of foreign language skills in the tourism sector: A comparative study of student perceptions in the UK and continental Europe

There is little doubt that skills in the language of another country are invaluable when communicating with people from that country. This is nowhere more apposite than in the context of the cross-cultural interface between tourism enterprises and visitors. However, the need for such skills in the UK has gained little attention, even in the key area of tourism. UK-based research that has been undertaken reinforces this view and also established the attitudes and perceptions of tourism students to the study and development of foreign language (FL) skills. In contrast, other EU countries reputedly have a greater awareness of the need for these skills and commitment to developing them which leads to speculation that tourism students in continental Europe would have contrasting attitudes to their UK counterparts. Subsequent to review of the importance of FL skills in the tourism sector the findings of research undertaken to investigate this hypothesis are presented. Significant variations between UK and non-UK students are identified not the least of which is the comparatively weak attention given to FL skills development in the UK. In concluding, the implications of the findings are discussed and concerns raised over the need to address evident weaknesses in order to enhance career options and tourism management in the UK.     

The evolution of coastal tourism destinations: a path plasticity perspective on tourism urbanisation

Evolutionary and relational approaches to economic development are gaining ground in geography as a discipline, although in the subfield of tourism geography, their potential is only just becoming recognised. This article focuses on the evolution of mature tourism destinations, taking the path dependency concept forward from the notion of path creation into the new domain of path plasticity. Drawing on the notion of cultural political economy, we examine how tourism destinations can break with path dependency routines incrementally and move steadily towards different future paths, which may recast tourism in a different light in the overall “urban” context of the destination. Using a case study of a Mediterranean coastal destination on Catalonia's Costa Daurada, we explore the inter-tangled tourism and urban development processes in relation to the socio-spatial dimensions of urban change. The article argues for a wider range of social and cultural criteria in the analysis of tourism evolution – advocating the use of path plasticity and a cultural political economy approach – to offer an alternative perspective on shifting tourism situations, reflecting the inherently “urbanising” nature of tourism development in the traditional coastal resort context. It adds to the growing literature on governance and strategy-making in sustainable tourism.     

The components and nature of tourism: The tourism market basket of goods and services

This paper will provide a background discussion on several basic aspects of tourism, based on an examination of tourism as an industry and as a phenomenon. The focus of the discussion is on some of the constituent elements in tourism supply and tourism demand, and some peculiar elements and distinctive features of the tourism phenomenon which may have resulted in the underdeveloped tourism discipline.Due to the complexity involved in the study of tourism, the subject matter is treated in a special way; First, tourism is viewed from a small window and only the most common aspects of it are illustrated. Later, the scope is gradually broadened and new elements which have made the tourism phenomenon complex and unusual are brought into the picture.     

Whale shark tourism at Ningaloo Marine Park: A longitudinal study of wildlife tourism

This article demonstrates the changes that occur due to the maturation of a wildlife tourism industry through the application of a Wildlife Tourism Framework. Specifically, in 2005 survey data was collect from participants of whale shark tourism at Ningaloo Marine Park in Western Australia, facilitating a direct comparison with a study conducted a decade earlier. The results conformed with predictions by the Framework, in particular, a shift in the industry towards the mainstream from the periphery. In comparison with the past, whale shark tourism at Ningaloo now attracts more generalist tourists who place different preferences on the whale shark tourism experience. There is now a greater distribution of age groups; less skilled individuals; a higher tolerance to crowding; and a larger focus on the non-wildlife components of the experience. Furthermore, this article, discusses the pertinent management implications associated with this shift.     

The segmentation of canary island tourism markets by expenditure: implications for tourism policy

The Canary Islands have an indisputable comparative and competitive edge within the European Union as regards their tourism products. The present study takes a segmented market approach to study the Canary Islands tourism market, featuring a range of tourism products, each of which satisfies to a greater or lesser extent the needs of one segment of demand. It has two objectives: firstly, to ascertain which segments of demand are currently acquired at destination and secondly, to identify within these segments the niches associated with the highest expenditure. This will enable us to draw up guideliness for a regional policy on product innovation that focuses on these niches and thus generates higher levels of local development.     

Heritage tourism: A question of age

This research analyzes the demographic characteristics and motivations of the senior and non-senior market segments in selecting a heritage site. By studying how these two groups of individuals select heritage sites, planners will be better able to comprehend what these individuals expect from their visit. A survey consisting of a historic preservationist scale, benefits sought scale, services sought scale, historic site preference scale, and demographic information was mailed to a systematic random sample of 700 travelers requesting tourism information about Virginia. The findings show that many similarities exist between the senior and non-senior market. However, the senior market is more likely to visit a historic site that is less convenient to reach, has fewer facilities, and is more authentic and less developed; while the non-seniors are motivated more by opportunity to escape work overloads.     

Social impacts of tourism : Host perceptions

This study investigates the pergeptions of the residents of Nadi, Fiji, towards the impacts of tourism. A survey of 199 households revealed that residents (most of whom were dependent on the industry for their livelihood) supported the current magnitude of tourism and favored its expansion. Despite this very clear and generally positive view, the respondents identified specific negative and positive impacts that, in their view, affected the community. The results suggest that residents of communities dependent on tourism can clearly differentiate between its economic benefits and the social costs, and that awareness of certain negative consequences does not lead to opposition towards further tourism development.