A tourism demand model for Fiji, 1970-2000

Despite the growing importance of the tourism industry, little is known about the determinants of tourism demand in Fiji. The major findings of analyses of the 1970?2000 period are that growth in income in Fiji?s main source countries for tourists leads to an increase in visitor arrivals, while relative prices and substitute prices negatively impact visitor arrivals in the long run. This implies that Fiji needs to maintain price competitiveness. Empirical evidence was also found that coups impede the short-run growth of the industry.

Tourism and economic development in a cash-in-advance economy

This paper examines the impact of tourism on welfare in a cash-in-advance economy. As a result of the expansion in tourism, the price of the non-traded good increases. This gives rise to a terms-of-trade improvement. However, the cash-in-advance constraint causes a distortion in consumption. For tourism demand, where the gain from the terms-of-trade improvement dominates (does not dominate) the loss from the consumption distortion, tourism is welfare-improving (welfare-reducing). A similar condition for welfare improvement (deterioration) holds for a model of capital inflow and endogenised tourism.

Why do Australians, New Zealanders and Americans travel to Fiji? Evidence from cointegration, unit roots and parameter stability tests

The aim of this study was to estimate the demand for Fiji’s tourism from its three main source markets—Australia, New Zealand, and the US—using the bounds testing approach to cointegration. Our main finding was that visitor arrivals to Fiji and its key determinants are cointegrated over the 1970–2000 period. We then used the autoregressive distributed lag model to estimate short-run and long-run elasticities and found that income in origin countries, transport costs, and prices were significant determinants of Fiji’s tourism demand. We also found that coups negatively impact visitor arrivals from all markets. In testing for parameter stability, we established that the series were integrated of order one in the presence of a structural break. We then used the Hansen test for parameter stability and found that the parameters of our long-run model are stable over time.

Tourism, taxes and immiserization: A trade theoretic analysis

Many countries promote tourism as a device for earning foreign exchange and promoting domestic welfare and growth. In all these countries the non-traded goods (internationally not traded) are consumed by both domestic residents and tourists. It is well known that the relative price of non-traded goods and services is determined in the local market – hence the tourist demand results in monopoly power in trade for the host country. We use a very simple two-country model to demonstrate the specific nature of the offer curve and the trade equilibrium and the difficulties of taxation.

Tourism, dutch disease and welfare in an open dynamic economy

This paper examines the effects of an expansion in tourism on capital accumulation, sectoral output and resident welfare in an open economy with an externality in the traded good sector. An expansion of tourism increases the relative price of the nontraded good, improves the tertiary terms of trade and hence yields a gain in revenue. However, this increase in the relative price of nontraded goods results in a lowering of the demand for capital used in the traded sector. The subsequent de-industrialization in the traded good sector may lower resident welfare. This result is supported by numerical simulations.

The media and the development of the tourism industry during the 20th and 21st centuries: an analysis of four noteworthy cases

The aim of this paper was to explore the role of the media within the context of tourism, specifically with regard to how the media has influenced the activities and perceptions of the tourism sector. In this paper, the term ‘media’ is referred to as mass communication, specifically with regard to newspapers, magazines and broadcasting. It is important to gain a better understanding of the ways in which the media has interacted with the tourism sector, as this information can provide practitioners and academics with insights as to how the media can best be employed to benefit stakeholders of the tourism industry. Lessons can be learned from the past so that the experience gained from it can contribute to best practice in the future. In this way, strategies can be developed to minimise the vulnerability of the tourism sector to damaging or erroneous portrayals of it and its activities in the media.
The case study method was used to explore the role of the media within the context of tourism. Four case studies provided insights on this topic. The four case studies were selected based on their diversity, within the context of the tourism sector, and because they covered a considerable period of time. These variables provided the researchers with a wide-ranging perspective on the topic.
The paper firstly focuses on the 1920’s Waiters’ Strike in the resort town of San Sebastián, Spain, and discusses the role of the media in relation to this event. The second case investigates the use of the media as a destination-marketing tool and reflects on an early manipulation of this process by the German authorities in the documentary Olympia, a film produced for the summer Olympics in 1936. The third case study reports on the manner in which the media has created tensions between connoisseurs of fine food and drink and hospitality industry professionals, and its subsequent implications on service quality. The final case investigates the role of the media in reducing demand for hospitality services in Melbourne on New Year’s Eve 2000.
Through an analysis of these diverse, but important case studies, it can be seen that the media has had, and continues to have, an impact on the development of the tourism industry in both positive and negative ways. The limitations of this research are discussed and recommendations are made for further research that will assist in developing a more comprehensive typology of the media’s role in tourism.

Full house theory: A new theory for assessing demand for arts centers

In this article I will establish an underpinning theory to apply in measuring demand for a new arts center (theater, museum, gallery, multipurpose space, tourism destination, or cultural precinct). The new theory is called "Full House Theory"-so called because it aims to provide an equation among the factors that result in maximum occupancy and use of an arts center or cultural facility. Existing theories used in the retail sector offer a distance-and-time analysis of expected customer demand but do not include differentiated product-demand analysis. Cultural planning literature examines community need in relation to cultural development but fails to provide a formula to predict sustainable demand. In addition, I will analyze the theories and methodologies in current use as well as their weaknesses in assessing cultural facility demand.

Medical tourism : a comparison of Australian, French and South Korean medical and health tourists to Thailand.

The high cost of surgery in Western countries has led to an increase in the demand for surgery in developing countries (York, 2008). The objective of this article is to examine the utilization and satisfaction with medical and health services purchased by Australian, French and South Korean visitors to Thailand. In late 2006 a face-to-face survey was conducted with 1,200 randomly selected tourists who had visited Thailand. Results show substantial usage of medical and health services. Satisfaction levels vary across type of service provided and by country of origin of tourist. Recommendations are provided to the national tourism authority. Future research directions are discussed.

A dynamic model of tourism, employment and welfare: the case of Hong Kong

The present paper uses a dynamic open-economy model with wage indexation to examine the impact of tourism on employment and welfare. Both short-run and long-run situations are analysed. It is well known that tourism converts non-traded goods into tradable goods. An increase in the demand for a non-traded good raises its relative price, which results in an expansion of the non-traded sector at the expense of the traded goods sector. This output shift raises labour employment in the short run. However, in the long run, the higher relative price leads to higher wages, resulting in a negative impact on labour employment. If the output effect is dominant, the expansion in tourism raises employment and welfare. However, under realistic conditions tourism may lower both labour employment and welfare due to rising costs. These results are demonstrated by simulating a dynamic model for the case of Hong Kong.

Tariff and consumption tax reforms in a developing tourism economy

This paper examines the effects of a coordinated tax reform by replacing import tariffs with point-by-point increases in consumption taxes for a small-open developing tourism economy. Foreign tourists demand for the non-traded goods provided in the informal sector of the host economy, resulting in a tourism-induced terms-of-trade effect. The presence of inbound tourism lends a support to positive tariffs even for a small open economy. The indirect tax reform of this kind can increase residents’ welfare and government revenue when the initial tariffs are relatively larger to the consumption taxes.

Tourism, Dutch disease and welfare in an open dynamic economy

This chapter examines the effects of an expansion in tourism on capital accumulation, sectoral output and resident welfare in an open economy with an externality in the traded good sector. An expansion of tourism increases the relative price of the non traded good, improves the tertiary terms-of-trade and hence yields a gain in revenue. However, this increase in the relative price of non traded goods results in a lowering of the demand for capital used in the traded sector. The subsequent de-industrialization in the traded good sector may lower resident welfare. This result is supported by numerical simulations. © 2011 Nova Science Publishers, Inc.