Giannoni, Sauveur (2011): On the economic rationality of fluctuations in tourism frequentation at nature-based destination: the case of Corsica seaside hotels.
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The aim of this paper is to answer a simple question: Are fluctuations, and especially temporary slow-downs or decline, in frequentation always harmful for a tourism destination? I propose a simple theoretical model for a nature-based destination, in which the willingness to pay (WTP) of a tourist for the destination depends on the environmental quality of the destination. I hypothesize that, at some points in time, there exists a rational economic incentive to experience a decrease in frequentation for a while in order to let the stock of natural assets regenerates since the fall in environmental quality is associated with a lower willingness to pay for the destination. Then I use a sample of 80 seaside hotels of Corsica to show that the WTP of tourists for a night-stay positively depends on environmental quality. Results indicate that a deterioration of the environmental quality of the destination would reduce the willingness to pay for a nigh-stay in Corsica of more than 25%. It tends to confirm my initial hypothesis since if the environmental quality of Corsica falls rational hotel owner should ask for a limited and temporary slow-down in frequentation so that environmental quality and the WTP reach again a higher and more profitable level.
|Item Type:||MPRA Paper|
|Original Title:||On the economic rationality of fluctuations in tourism frequentation at nature-based destination: the case of Corsica seaside hotels|
|Keywords:||Tourism, Willingness to Pay, Fluctuations|
|Subjects:||Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products
L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports; Gambling; Recreation; Tourism
|Depositing User:||Sauveur Giannoni|
|Date Deposited:||11. May 2011 12:15|
|Last Modified:||20. Feb 2013 17:51|
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On the economic rationality of fluctuations in tourism frequentation at nature-based destination. (deposited 15. Mar 2011 10:13)
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