Transport Capital as a Determinant of Tourism Development: A Time Series Approach

Boopen, Seetanah (2005): Transport Capital as a Determinant of Tourism Development: A Time Series Approach. Published in: TOURISMOS: An International Multidisciplinary Refereed Journal of Tourism , Vol. 1, No. 1 (15 April 2006): pp. 55-73.

Abstract

Little serious research has been undertaken into the significance of transport as a factor in destination development despite being acknowledged by many writers. The paper aims at identifying and quantifying the factors that made Mauritius attractive to tourists and also to more importantly to investigate the importance transportation capital in the overall destination’s attractiveness. The novelty of this paper is that is extends a classical demand for international tourism function to include a proxy of public capital stock which has been decoupled into transport and non-transport infrastructure, and also uses co-integration analysis to model the determinants of tourism for a small island economy case. Results from the analysis show that transport capital stock of the country has been contributing positively of the number of tourist arrival in both short and long run. Tourism infrastructure is reported to be a more important ingredient than transport in the tourism equation. Non transport infrastructure, though having a positive sign, was however found to be insignificant. The study thus highlights the importance of transport capital in adding to the value of service and experience received by tourism.

• Item Type: MPRA Paper
• Language: English
• Keywords: Co-integration, Error Correction Model, Small Island Economy
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development; L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism

References

Buhalis, D (2000) Marketing the competitive destination of the future, Tourism Management 21 (116).

Chew, J. (1987). Transport and tourism in the year 2000, Tourism Management, 8(2), 85.

Choy, D.J.L. (1992) Life cycle models for Pacific island destinations. Journal of Travel Research, 30 (3), 26-31.

Cohen, E. (1979) A phenomenology of tourist experiences, Sociology, 13(2), 201.

Crouch, G I., and R Brent (1995) Destination Competitive-: Exploring the Quality of ness and the Role of the Tourism Enterprise, Proceedings of the Fourth Annual Business Congress, Istanbul, Turkey. July 13–16, pp. 43–48.

Crouch, G. I., & Ritchie, J. R. B. (1999) Tourism competitiveness and societal prosperity, Journal of Business Research, 44(3), 137}152.

Crouch J.R and Ritchie, (2000) The competitive destination: A sustainability perspective, Tourism Management 21.

Durbarry, R, (2002), The economic contribution of tourism in Mauritius, Annals of Tourism Research, Vol 29, No 3, pp 862–865.

Durbarry, R (2004), Tourism and economic growth: the case of Mauritius, Tourism Economics, 10(4), pp 389-401.

Eilat Y and L Einav, (2004) Determinants of international tourism: a three- dimensional panel data analysis, Applied Economics 36, 1315–1327.

Engle, R. E., and Granger, C.W.J. (1987), Co-integration and error correction: representation, estimation, and testing, Econometrica, Vol. 55, No 2, pp 251–276.

Ferrario, F (1979), The evaluation of tourist resources, Journal of Travel Research 17(3):18-22.

Inskeep, E (1991) Tourism Planning: An integrated and sustainable development approach, New York, Van Nostrand Reinhold.

Johansen, S (1988), Statistical analysis of cointegration vectors, Journal of Economic Dynamics and Control, Vol. 12, pp 231–254.

Gunn, C.A. (1988) Tourism Planning (second edition), New York: Taylor & Francis.

Gearing, C.E (1974), Establishing a Measure of Touristic Attractiveness, Journal of Travel Research, 12, 1-8.

Hu, Y. Z., & Ritchie, J. R. B. (1993). Measuring destination attractiveness: A contextual approach. Journal of Travel Research, 32(2), 25}34.

Kaul, R. N. (1985). Dynamics of tourism: A trilogy (Vol. 111) Transportation and Marketing, New Delhi.

Kim, Crompton, Botha (2000) Responding to competition: a strategy for Sun/Lost City, South Africa Tourism Management 21 (41).

Kozak, M. and M. Rimmington (1999). Tourist Satisfaction with Mallorca (Spain) as an Off-season Holiday Destination. Journal of Travel Research (forthcoming).

Kulendran, N. (1996) Modeling quarterly tourist .ows to Australia using cointegration analysis, Tourism Economics, 2, 203–22.

Lim C (1997), Review of international tourism demand models, Annals of Tourism research, Vol. 24, No 4, pp 835-849.

Lim C and M McAleer (2002) Time series forecasts of international travel demand for Australia, Tourism Management 23, 389-396.

Martin, C. A., & Witt, S. F. (1988). Substitute prices in models of tourism demand. Annals of Tourism Research, 15, 255-268.

McElroy J, L (2003) Small Island Tourist Economies Across the Lifecycle, Paper prepared for the International Conference, Beyond MIRAB: The Political Economy of Small Islands in the 21st Century, School of Economics and Finance, Victoria University, Wellington, New Zealand, 23-25 February 2004.

Mo, Howard and Havitz (1993), Testing a tourist role typology, Annals of Tourism research, Vol. 20, pp 319-335.

Murphy P, M Pritchard, B Smith (2000) The destination product and its impact on traveler perceptions, Tourism Management 21, 43-52.

Naudee W A, Saayman A (2004) The determinants of tourist arrivals in Africa : A Panel Data Regression Analysis, Paper presented at the International Conference, Centre for the Study of African Economies, University of Oxford.

Nordstrom J (2002) Dynamic and Stochastic Structures in Tourism Demand Modeling, Umea Economic Studies No 596, Umea University, Sweden.

Prideaux B (2000) The role of the transport system in destination development, Tourism Management 21, 53-63.

Ritchie, B. J. R. and Zins M. (1978) Culture as a determinant of the attractiveness of a tourist region, Annals of Tourism Research, 5(2): 252-267.

Ritchie, B., & Crouch, G. (1993) Competitiveness in international tourism: A framework for understanding and analysis, Annual Congress of the International Association of Scientific Experts in Tourism, Baliloche, Argentina.

Robinson, H. (1976). A geography of tourism. London: MacDonald and Evans.

Sinclair, T. (1998), Tourism and economic development: a survey, Journal of Development Studies, Vol 34, No 5, pp 1–51.

Smith, S. L. J. (1994). The tourism product. Annals of Tourism Research,21(3), 582}595.

Tang and Rochananond (1990), Attractiveness as a tourist destination; a comparative study of Thailand and selected countries, Socio-Econ Planning, Vol 24, No 3.

Tourism Task Force (TTF) (2003), Down the track; better ways to deliver tourism’s land transport infrastructure. Available on www.ttf.org.au.

Witt, S. F. (1980) An abstract mode-abstract (destination) node model of foreign holiday demand, Applied Economics, 12, 163–80.

Witt S and Witt C (1995) Forecasting tourism demand: A review of empirical research, International Journal of Forecasting, Vol. 11 pp 447-475.

WTO (2003), Tourism Highlights, World Tourism Organization, Madrid.