Giannoni, Sauveur (2011): On the economic rationality of fluctuations in tourism frequentation at nature-based destination.
Download (421kB) | Preview
The aim of this paper is to answer a simple question: Are fluctuations, and especially temporary decline, in frequentation always harmful for the pro�t of a tourism destination? I propose a simple model for a nature-based destination, in which the willingness to pay of a tourist for the destination depends on the stock of natural assets, and I show using simulations that 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. This is an idea already emphasized by Greiner et al. (2001) and Kort et al.(2002). I show that anyway the optimal behavior of a pro�fit-maximizing representative tourism �firm would generally lead to a monotonic frequentation path. This apparent contradiction is due to the fact that the level of frequentation is not, in the real world, set at its optimal level. Yet it could be good news if at some point, when the stock of natural assets is low, frequentation declines for a while.
|Item Type:||MPRA Paper|
|Original Title:||On the economic rationality of fluctuations in tourism frequentation at nature-based destination|
|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, Innovation, 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 ; Restaurants ; Recreation ; Tourism
|Depositing User:||Sauveur Giannoni|
|Date Deposited:||15. Mar 2011 10:13|
|Last Modified:||30. Dec 2015 21:15|
Agarwal, S.: 1997, The resort cycle and seaside tourism: an assessment of its applicability and validity, Tourism Management 18(2), 65-73.
Butler, R.: 1980, The concept of a tourist area cycle of evolution: implications for the management of natural reserves, Canadian Geographer 24, 5-12.
Clark, C. W.: 1990, Mathematical Bioeconomics The optimal management of renewable resources, Wiley-Interscience.
Cerina, F.: 2007, Tourism specialization and environmental sustainability in a dynamic economy, Tourism economics 13.
Diamond, J.: 1977, Tourism's role in economic development: the case reexamined, Economic development and cultural change 25(3).
Greiner, A., Feichtinger, G., Haunschmied, J. L., Kort, P. M. and Hartl, R. F.: 2001, Optimal periodic development of a pollution generating tourism industry, European Journal of Operational Research 134, 582-591.
Kort, P. M., Greiner, A., Feichtinger, G., Haunshmied, J. L., Novak, A. and Hartl, R. F.: 2002, Environmental e¤ects of tourism industry investments: an inter-temporal trade-off, Optimal control applications and methods 23
Léonard, D. and Long, N. V.: 1992, Optimal control theory and static optimization in economics, Press syndicate of the University of Cambridge.
Oppermann, M.: 1995, Travel life cycle, Annals of tourism research 22(3), 535-552.
Tooman, L. A.: 1997, Applications of the life-cycle model in tourism, Annals of Tourism Research 24(1), 214-234.
Available Versions of this Item
- On the economic rationality of fluctuations in tourism frequentation at nature-based destination. (deposited 15. Mar 2011 10:13) [Currently Displayed]