Testing reference dependence, loss aversion and diminishing sensitivity in Spanish tourism

Based on Tversky and Kahneman’s Prospect Theory, we test the existence of reference dependence, loss aversion and diminishing sensitivity in Spanish tourism. To do this, we incorporate the reference-dependent model into a Multinomial Logit Model with Random Parameters -which controls for heterogeneity- and apply it to a sample of vacation choices made by Spaniards. We find that the difference between reference price and actual price is considered to make decisions, confirming that reference dependence exists; that people react more strongly to price increases than to price decreases relative to their reference price, which represents evidence in favor of the loss aversion phenomenon; and that there is diminishing sensitivity for losses only, showing convexity for these negative values.

Identificación de las distintas sensibilidades a los precios turísticos en la Comunidad Valenciana

El papel del precio en el sector turístico es especialmente complejo debido a la heterogeneidad existente entre los turistas y, por tanto, a las distintas sensibilidades al precio que muestran. En este sentido, el presente trabajo propone la utilización de modelos de elección discreta para identificar las sensibilidades individuales, turista a turista, y, a continuación, utilizar dichas estimaciones como punto de partida para detectar grupos de turistas con una respuesta similar a los precios. La aplicación empírica realizada en el contexto de la Comunidad Valenciana permite detectar tres segmentos: turistas de precio bajo, turistas indiferentes al precio y turistas de precio alto.

Stochastic choice analysis of tourism destinations

The analysis of tourist destination choice, defined by intra-country administrative units and by product types “coastal/inland and village/city”, permits the characterisation of tourist flow behaviour, which is fundamental for public planning and business management. In this study, we analyse the determinant factors of tourist destination choice, proposing various research hypotheses relative to the impact of destination attributes and the personal characteristics of tourists. The methodology applied estimates Nested and Random Coefficients Multinomial Logit Models, which allow control over possible correlations among different destinations. The empirical application is realised in Spain on a sample of 3,781 individuals and allows us to conclude that prices, distance to the destination and personal motivations are determinants in destination choice.

Competences in Masters in Tourism Management and Planning

Presentación sobre las competencias del Máster en Dirección y Planificación del Turismo realizada en el marco de un proyecto TEMPUS.

The role of authenticity in tourism planning: empirical findings from southeast Spain

Tourism is the main economic activity in many towns in the province of Alicante in southeast Spain and has turned this area into a paradigmatic example of mass tourism on the Mediterranean coast. Since the 1960s, the province's coastal towns have opted for a development model centred on what is known as 'residential tourism' or 'second-home tourism', with few exceptions, such as Benidorm. We wish to put forward the argument that the main social agents in the tourism sector have not perceived the 'search for authenticity' as a factor that may attract tourists to this area. To this end, we will start by reviewing critically the theoretical discourse about the role played by authenticity in the motivation of tourists. Then we will discuss some of the results obtained from empirical, qualitative research that included 37 in-depth interviews. As a guide for our empirical research, we use a model based on the stakeholder theory. The epistemological difficulties faced by researchers do not justify certain critical arguments that try to highlight the impossibility of operationalising essential concepts and approaches such as that of authenticity. Therefore, it is necessary that empirical research continues to delve into the sociological keys that determine the 'search for authenticity' in the tourists' experience.

Tourism dependence and host community perceptions: notes on the social exchange theory

This article examines the opinions of the local population on the south coast of the Spanish province of Alicante regarding the development of tourism in recent years, analysing their perception of the benefits of tourism using the social exchange theory. This study is presented in two stages. The qualitative stage, which is based on in-depth interviews and focus groups, acts as a guide for the second stage, which consists of a survey conducted with the resident Spanish population. It was found that people linked to the tourist sector through their work view tourism as the driving force behind the economic and social development of their towns, although they are more critical than others of the model that has been established. They defend the development process that has taken place, but feel that overcrowding brings their towns to a standstill and needs to be resolved.

Elección de la duración del viaje vacacional: una aproximación con modelos de recuento

La duración del viaje vacacional es una decisión del turista con unas implicaciones fundamentales para las organizaciones turísticas, pero que ha recibido una escasa atención por la literatura. Además, los escasos estudios se han centrado en los destinos costeros, cuando el turismo de interior se está erigiendo como una alternativa importante en algunos países. El presente trabajo analiza los factores determinantes de la elección temporal del viaje turístico, distinguiendo el tipo de destino elegido -costa e interior-, y proponiendo varias hipótesis acerca de la influencia de las características de los individuos relacionadas con el destino, de las restricciones personales y de las características sociodemográficas. La metodología aplicada estima, como novedad en este tipo de decisiones, un Modelo Binomial Negativo Truncado que evita los sesgos de estimación de los modelos de regresión y el supuesto restrictivo de igualdad media-varianza del Modelo de Poisson. La aplicación empírica realizada en España sobre una muestra de 1.600 individuos permite concluir, por un lado, que el Modelo Binomial Negativo es más adecuado que el de Poisson para realizar este tipo de análisis. Por otro lado, las dimensiones determinantes de la duración del viaje vacacional son, para ambos destinos, el alojamiento en hotel y apartamento propio, las restricciones temporales, la edad del turista y la forma de organizar el viaje; mientras que el tamaño de la ciudad de residencia y el atributo “precios baratos” es un aspecto diferencial de la costa; y el alojamiento en apartamentos alquilados lo es de los destinos de interior.

Papel moderador de las motivaciones en el efecto de los precios de los destinos turísticos

La literatura de elección de destinos turísticos ha dedicado una gran atención al impacto directo del atributo “precio del destino”, pero no ha alcanzado un consenso en torno al mismo. Alternativamente, nuestro trabajo toma como punto de partida la relación entre las motivaciones turísticas y los beneficios buscados del turista en un destino, lo que lleva a proponer que el efecto del precio viene moderado por las motivaciones del turista a la hora de elegir un destino. Para ello, se argumentan diversas hipótesis de investigación que explican esta decisión a través de la interacción entre dicho atributo del destino y las motivaciones personales de los individuos. La metodología aplicada estima Modelos Logit con Coeficientes Aleatorios que permiten controlar posibles correlaciones entre los distintos destinos y recoger la heterogeneidad de los turistas. La aplicación empírica realizada en España sobre una muestra de 2.127 individuos evidencia que las motivaciones moderan el efecto de los precios en la elección de los destinos turísticos intrapaís.

Beyond megaprojects?. Water alternatives for mass tourism in coastal Mediterranean Spain

Water availability in adequate quantities and qualities is a fundamental requirement for tourism. In the Mediterranean, one of the world’s leading tourist destinations, water availability is subject to modest and erratic precipitation figures which may decline with climate change. The tourist industry therefore may have to assure future supplies by either recurring to new technologies such as desalination or increasing efficiency in water use. A third and yet little explored alternative would be to seek for complementary of uses with irrigation, the traditional user in many coastal Mediterranean areas and holder of substantial amounts of water. In this paper we present the example of the Consorcio de Aguas de la Marina Baja to show how Benidorm, in Mediterranean Spain and one of the most important tourist centers of the Mediterranean, obtains part of its water through agreements with farmers by which these trade their water with Benidorm and other towns’ treated wastewater of enough quality to be used for irrigation, and obtain several compensations in return. The advantages and disadvantages of the water trade between farmers and tourist interests in the Benidorm area are discussed and we argue that solutions to the pending water crisis of many coastal Mediterranean tourist areas may not need to rely uniquely on expensive technologies to generate new resources but may attempt other alternatives.

The "other" cities: urban planning and architecture for tourism: the case of the Spanish Mediterranean (1945-1975)

There we analyce the first touristic nucleus arouse in the Spanish Mediterranean coast between World War II and the Petroleum Crisis (1945-75). Special attention is payed to the characteristics of these new villages: the relation of their urban frame with nature -original or artificial- and the lack of industry. We make a distintion of three types: cluster nucleus (La Manga and El Saler), tridimentional urbanism (Playa de San Juan y Urbanova) and extreme typologies (Campoamor and Benidorm). With them the cities for vacations are discovered, mainly for second home purpouse (vacation home/holiday home). The panorama after the current crisis is a lineal chain of small urban settlements on the coast. Finally, Finally, we can see how these "secondary cities" without industry and specialized in leisure, are developing to our days until become new cities of services, doubling the existing ones; now they are "the other cities".

International residential tourism in north east Brazil: a stakeholder analysis

This paper analyses the system of actors involved in the development of residential tourism on the north east coast of Brazil. The study observes the socio-political effects of the 2001-2008 real estate boom, focused on the promotion of second homes in closed residential areas. Stakeholder Analysis (SA) is used to identify the various actors’ roles and positions within a particular social space in a tourist setting which is exposed to transnational and real estate interests. The method reveals an unequal and conflict-ridden social reality. The results show that residential tourism shapes the local socio-political configuration, strengthening some actors (urban developers, real estate companies) whilst positioning others in a situation of dependence (local communities, cities).

The evolution of mass tourism destinations: new approaches beyond deterministic models in Benidorm (Spain)

Although deterministic models of the evolution of mass tourism coastal resorts predict an almost inevitable decline over time, theoretical frameworks of the evolution and restructuring policies of mature destinations should be revised to reflect the complex and dynamic way in which these destinations evolve and interact with the tourism market and global socio-economic environment. The present study examines Benidorm because its urban and tourism model and large-scale tourism supply and demand make it one of the most unique destinations on the Mediterranean coast. The investigation reveals the need to adopt theories and models that are not purely deterministic. The dialectic interplay between external factors and the internal factors inherent in this destination simultaneously reveals a complex and diverse stage of maturity and the ability of destinations to create their own future.

Price sensitivity to tourism activities: looking for determinant factors

The literature contains evidence that there is a marked heterogeneity in price responses to tourism products, leading to a great variety of tourist sensitivities to price. Thus the role price plays is complex, and a particularly challenging aspect of this complexity is that its effect is not unambiguous, thereby negating the idea that the demand for tourism products and tourist activities can always be regarded as demand for ordinary goods. This article identifies and explains, as a novelty for the tourism industry, price sensitivities to tourism activities individual by individual. The operative formalization uses a mixed logit model to estimate the individual sensitivities to price, and then a regression analysis is applied to detect their determinants. The empirical application finds that motivations, influenced by age, and length of stay with a non-linear effect, are explanatory factors of tourists’ price sensitivity to activities.

Economic cycles, asymmetric crises and tourism competitiveness: emerging versus mature destinations

This paper considers the influence of business cycles and economic crises on tourism destinations competitiveness. This competitiveness is measured by its share in world tourism. Analysing a period of forty years, the differential permanent or temporary effects that economic crises has on competitiveness of mature and emerging destinations are observed. Furthermore, it identifies the economic transmission mechanisms operating within this context, analysing them using the framework of the most relevant explanatory models of tourism destination competitiveness. The preliminary results obtained suggest that the effects of these shocks on competitiveness are not neutral. In mature destinations the negative effects are more persistent in highly intensive crises. In emerging destinations with a growing natural trend on tourism demand, the effects of the economic crises are softer and limited, reinforcing the process of convergence between destinations. This effect works through two basic transmission mechanisms: the reduction of internal and external tourism demand and the decrease on investment.

Individual returns to education in the Spanish tourism sector during the economic crisis

This paper analyses individual returns to education in the Spanish tourism sector. The results, which are robust to different specifications of Mincer earnings regressions, show that the earnings returns to schooling for tourism workers are only half those for all other sectors, and that the difference in returns between these two groups has increased significantly during the economic crisis. This has happened at a time when the earnings range between those with lower and higher qualifications has narrowed in tourism while it has remained stable in other sectors, and when tourism has been capable of retaining most of its workforce while the rest of the economy has experienced a sharp decrease in employment.