THE EFFECTS ON ENVIRONMENTAL INVESTMENT OF CHANGES IN TOURISM DEMAND

Accinelli, Elvio and Brida, Juan Gabriel and Carrera, Edgar and Pereyra, Juan (2007): THE EFFECTS ON ENVIRONMENTAL INVESTMENT OF CHANGES IN TOURISM DEMAND. Published in: TOURISMOS: An International Multidisciplinary Journal of Tourism , Vol. 2, No. 2 (November 2007): pp. 129-140.

Abstract

In this short paper we analyze the impact of tourist demand in hotel rooms on the investment of hotels on environmental quality. We show that when income of the tourists increases, then to maintain the demand for rooms, the hotels must in-crease the investment on the environmental quality of the region where there is an increment of the tourist activity. In the particular case where we have three differ-ent hotel chains located in three different tourist regions, we show that the incen-tive of hotel chains to invest in environmental quality depends on the demand for days of rest on the part of tourists and on the level of aggregate income. We also show that if total income increase, then the incentive to invest in environmental quality increases in the region where the price of a hotel room is lower.

• Item Type: MPRA Paper
• Language: English
• Keywords: environmental investment, hotelling competition, service quality, sustainable tourism
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M0 - General; D - Microeconomics > D0 - General; L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism

References

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