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.