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Destination performance: Introducing the utility function in the mean-variance space
Affiliation:2. CRESEM – CAEPEM, IAE de l''UPVD, 52 Avenue Paul Alduy, 66860, Perpignan, France;3. IDP (EA1384) – FDEG, Université de Valenciennes et du Hainaut Cambrésis, Les Tertiales, Rue des Cent Têtes, 59300, Valenciennes, France;1. Ecole Nationale Polytechnique Unité URIE, 10, Avenue Pasteur, El-Harrach, Algeria;2. Centre de Recherche en Technologie des Semi-conducteurs pour l’Energétique (CRTSE), 2, Bd Dr. Frantz Fanon P.O. Box 140, Algiers-7 merveilles, Algiers 16038, Algeria;1. Instituto de Investigación Sanitaria, Hospital Clínico San Carlos, Madrid, España;2. Servicio de Urgencias, Hospital Clínico San Carlos, Madrid, España;3. Servicio de Medicina Interna, Hospital Clínico San Carlos, Madrid, España;1. Department of Accounting, Finance and Economics, Oxford Brookes University, Oxford, UK;2. Department of Economics, National University of Ireland, Galway, Ireland;3. Growth Economics, Inc., Galway, Ireland;1. Austrian Institute of Economic Research (WIFO), Austria;2. Stockholm University, Sweden;1. School of Statistics, Dongbei University of Finance and Economics, Dalian, 116025, China;2. School of Mathematics and Statistics, Lanzhou University, Lanzhou, 73000, China
Abstract:Economic characteristics of home countries can cause considerable variations in the tourism demand. For example, the average level of expenditure per tourist varies from one origin to another and these variations may alter overtime. Thus different tourist nationalities are associated with different level of expenditures and risks. Therefore strategies aimed at minimizing the variations may become an important issue for the policy makers. In this paper, we aim to use the productivity measurement theory in a mean-variance space to a French region (Nord Pas-de-Calais) by introducing the utility function in a mean-variance framework. With this method, we can calculate the optimal portfolio share for each origin and give some useful political advices to the policy decision makers to improve the performance of the tourist sector.
Keywords:Productivity measurement  Mean-variance  Tourism efficiency  Efficiency decomposition  Utility function  Nord Pas-de-Calais  L83  C61  C67
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