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Open Access
Article
Publication date: 2 November 2022

Panayiotis Tzeremes

The study aims to investigate the nexus between total factor productivity and tourism growth in Latin American countries for time series data from 1995 to 2017.

Abstract

Purpose

The study aims to investigate the nexus between total factor productivity and tourism growth in Latin American countries for time series data from 1995 to 2017.

Design/methodology/approach

Using the extension of the Granger noncausality test in the nonlinear time-varying of Ajmi et al. (2015), the study points out the interconnectedness between the variables during the period.

Findings

The study found nonlinear causality between the variables. Particularly, studying the conclusions for the time-varying Granger causality fashion, it can be noticed that the one-way causality from total factor productivity to tourism growth is obtained for Argentina, Bolivia, Brazil, Uruguay and Venezuela, while the vice versa is confirmed for Chile, Ecuador and Nicaragua. Lastly, the study dissected the plots of the curve causality.

Practical implications

In view of the results, some crucial policy implications could be suggested, such as, under certain circumstances and as an exceptional case, the use of policy instruments such as targeted investment, marketing and the support of tourism organizations focused on driving a tourism-led-based productivity and/or tourism programs and projects.

Originality/value

The current work is distinguished from the existing body of understanding in several substantial directions. This work explores, for the first time, the linkages between the total factor productivity index and tourism growth for Latin American countries. No single attempt has been known to investigate this interaction by using nonlinear causality, and this study determines the shape of the curve between the total factor productivity index and tourism growth for each country.

Details

Journal of Economics, Finance and Administrative Science, vol. 27 no. 54
Type: Research Article
ISSN: 2218-0648

Keywords

Open Access
Article
Publication date: 2 April 2020

Sheereen Fauzel

Based on a panel vector error correction model (PVECM), this study aims to investigate the impact of foreign direct investment (FDI) on tourism development in a selected group of…

4542

Abstract

Purpose

Based on a panel vector error correction model (PVECM), this study aims to investigate the impact of foreign direct investment (FDI) on tourism development in a selected group of 17 small island economies during 1995-2018. In the long run, a positive and direct relationship was found between foreign investment and tourists’ arrival. Moreover, economic performance and tourists’ income were also found to be key determinants of tourism development. It is further observed that there is bidirectional causality between the two variables. Hence, one can argue that FDI is a key element for tourism development. So, if the countries can attract more FDI and grow economically, these elements will contribute positively to the sector in the future.

Design/methodology/approach

This work uses rigorous dynamic time series analysis, namely, a dynamic PVECM, which takes into account dynamism and endogeneity issues in tourism modelling. Furthermore, the PVECM is also appropriately suited for integrating short- and long-run analysis.

Findings

The results confirm that FDI has been an important ingredient in the tourism development of the island economies in the long run. Interestingly, a bidirectional causality between FDI and tourism development is validated. Moreover, growth will as well be important. So, if the country can attract more FDI and grow economically, these elements will attract the tourists of the future.

Originality/value

Relatively few studies have rigorously studied the relationships between FDI and tourism development, particularly with respect to developing countries and small island states which rely heavily on tourism as well as FDI. As such existing research has neglected dynamic and reverse causality analysis in their respective FDI-tourism modelling. This study thus attempts to address the above and supplement the literature by investigating the direct and indirect relationship between FDI and tourism development for the case of small island economies over the period 1995-2018. Moreover, the implication of foreign capital inflows on tourism futures will as well be developed.

Details

Journal of Tourism Futures, vol. 7 no. 1
Type: Research Article
ISSN: 2055-5911

Keywords

Open Access
Article
Publication date: 26 September 2019

Claudia Susana Gómez López and Karla Susana Barrón Arreola

This paper aims to study the relationship between employment and tourism activities as well as economic variables for the 32 states of Mexico for the period 1999-2014.

11901

Abstract

Purpose

This paper aims to study the relationship between employment and tourism activities as well as economic variables for the 32 states of Mexico for the period 1999-2014.

Design/methodology/approach

To study the case of Mexico, the authors use panel data and cointegration panel data. They also use geographic information systems to observe changes over time between the variables, which is useful in the empirical evidence.

Findings

The main results obtained by the models are as following: domestic tourism is the variable with the greatest impact on the generation of direct employment in the tourism sector, a finding supported by both methodologies; economic growth (measured by state gross domestic product) also directly impacts the generation of employment; and the cointegration of the panels causes a long-term equilibrium among the states and some variables.

Research limitations/implications

The model used leaves out other variables that may influence the performance of the tourist activity. In addition, given the availability of official and homogeneous information, it only covers what has been documented up to 2014.

Social implications

The aim is to measure the impact of tourism on the variables at the state level, where the economic activities could be based on public policies, as well as the importance of tourism activities in generating employment. In this sense, the impact would be in channeling efforts to support the main economic activities and could serve as a starting point for the evaluation of programs to promote domestic tourism.

Originality/value

This paper reviews the relationship that exists between tourism activity and its effect on other variables, especially employment. It is the first time that these topics are studied for the Mexican economy.

Details

Journal of Tourism Analysis: Revista de Análisis Turístico, vol. 26 no. 2
Type: Research Article
ISSN: 2254-0644

Keywords

Open Access
Article
Publication date: 8 October 2019

Korak Bhaduri and Shivendra Pandey

The purpose of this paper is to investigate the impact of information and communication technology (ICT) development and terrestrial and marine protection on the economic and…

2390

Abstract

Purpose

The purpose of this paper is to investigate the impact of information and communication technology (ICT) development and terrestrial and marine protection on the economic and environmental sustainability of small-island tourism countries. The current study expands the smart specialisation literature in the context of small-island tourism nations. It also proposes sustainable future growth strategies for these countries.

Design/methodology/approach

This paper adopted structural equation modelling using the data of 14 island nations between 1995 and 2014. The selection of countries was based on a set of criteria borrowed from literature.

Findings

The results indicate that the development of ICT infrastructure was not only associated with a higher inflow of tourists and a higher GDP per capita but also with a higher carbon dioxide (CO2) emission. Results also suggest that higher protection of terrestrial and marine areas has no impact on tourist inflows in tourism countries. Also, higher protection decreases the dependence of the total output on the tourism sector.

Research limitations/implications

A limitation of this study is the lack of available macro data on some other relevant variables for the countries studied.

Social implications

Following the findings of this study, the governments of these countries should make stringent environmental regulations and relax the telecom regulations for sustainable smart specialisation.

Originality/value

This study presents a novel insight into the sustainability challenge of island nations through the lens of smart specialisation. It also contributes to the literature on ICT and development.

Details

Journal of Tourism Futures, vol. 6 no. 2
Type: Research Article
ISSN: 2055-5911

Keywords

Open Access
Article
Publication date: 18 May 2021

Sudeshna Ghosh

This paper aims to consider the role of geopolitical risk in explaining tourism demand in India, a major tourist destination of the Asian region. Furthermore, the study also…

2906

Abstract

Purpose

This paper aims to consider the role of geopolitical risk in explaining tourism demand in India, a major tourist destination of the Asian region. Furthermore, the study also considers how in addition to geopolitical risk, economic policy uncertainty, economic growth, exchange rate, inflation and trade openness impact tourism demand.

Design/methodology/approach

The Bayer and Hanck (2013) method of cointegration is applied to explore the relationship between geopolitical risk and tourism demand. Furthermore, the study has also used the auto distributed lag model to determine whether there is a long-run cointegrating association between tourism demand, geopolitical risk, economic policy uncertainty, economic growth, exchange rate and trade openness. Finally, the vector error correction model confirms the direction of causality across the set of the major variables.

Findings

This paper finds that geopolitical risk adversely impacts inbound international travel to India. This study also obtains the consistency of the results across different estimation techniques controlling for important macro variables. The Granger causality test confirms the unidirectional causality from geopolitical risk to tourism and further from economic uncertainty to tourism. The findings from the study confirm that geopolitical risks have long-term repercussions on the tourism sector in India. The results indicate that there is an urgent need to develop a pre-crisis management plan to protect the aura of Indian tourism. The tourism business houses should develop skilful marketing strategies in the post-crisis to boost the confidence of the tourists.

Research limitations/implications

This paper provides valuable practical implications to tourism business houses. The tourism business houses can explore geopolitical risk measure and economic policy uncertainty measure to analyse the demand for international tourism in India. Further, the major stakeholders can establish platforms to help tourists to overcome the fear associated with geopolitical risk.

Originality/value

This study is the first of its kind to explore the geopolitical risks and their long-run consequences in the context of tourism in India. The study puts emphasis on the role of national policy to maintain peace otherwise it would be detrimental to tourism.

Details

Review of Economics and Political Science, vol. 7 no. 1
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 10 February 2021

Ryan Peterson and Robin B. DiPietro

Drawing on theories of development economics and sustainable tourism, this research explores the differences between sovereign and nonsovereign small island tourism economies…

3103

Abstract

Purpose

Drawing on theories of development economics and sustainable tourism, this research explores the differences between sovereign and nonsovereign small island tourism economies (SITEs) and identifies the antecedents and effects of overtourism in the Caribbean.

Design/methodology/approach

The research design is based on a comparative case study of selected Caribbean SITEs. Case study research involves a detailed empirical inquiry that investigates a contemporary phenomenon within its real-life context. The main purpose of a case study is to provide a contextual analysis of the conditions and processes involved in the phenomenon under study. A comparative case study is an appropriate research methodology to explore new multi-faceted concepts with limited empirical evidence.

Findings

The results confirm previous studies that nonsovereign SITEs have a distinctive overdrive toward tourism specialization. Moreover, the findings indicate that overtourism is driven by both global and domestic policy factors and generates significant economic volatility, social inequality and ecological stress. The paper discusses the tourism policy implications of the evolving economic disconnectedness, environmental decay and social tensions in SITEs in the Caribbean.

Originality/value

Policy recommendations are presented for transitioning toward a more inclusive development and strengthening the resilience of small island tourism development in the Caribbean.

Details

International Hospitality Review, vol. 35 no. 1
Type: Research Article
ISSN: 2516-8142

Keywords

Open Access
Article
Publication date: 29 June 2023

Taiwo Temitope Lasisi, Samuel Amponsah Odei and Kayode Kolawole Eluwole

The current study is designed to investigate the factors that foster the framing of destination competitiveness and establish the factors that drive the contribution of tourism…

1372

Abstract

Purpose

The current study is designed to investigate the factors that foster the framing of destination competitiveness and establish the factors that drive the contribution of tourism innovations to economic growth in smart tourism destinations.

Design/methodology/approach

A four-year panel data were extracted from the World Economic Forum's travel and tourism competitiveness index and data were analysed using Poisson Pseudo Maximum Likelihood regression model.

Findings

The findings demonstrate that both the enabling environment and airport infrastructure significantly affect tourism's impact on the economy of the selected smart European tourism destinations. Conversely, human resources and general infrastructure display a negative correlation with tourism's contribution to the economy. However, no data in the sample support the idea that tourism policies, government prioritization or readiness of tourism information and communication technologies impact tourism's contribution to the economy. Additionally, the marginal effects indicate that improving the enabling environment and airport infrastructure can generate additional benefits for the economy through tourism.

Originality/value

The uniqueness of this study is the integration of smart tourism destinations with the measure of destination competitiveness to provide an empirical bridge that links tourism competitiveness to economic growth.

Details

Journal of Tourism Futures, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2055-5911

Keywords

Open Access
Article
Publication date: 11 October 2023

Nikhil Kumar Kanodia, Dipti Ranjan Mohapatra and Pratap Ranjan Jena

Economic literature highlights both positive and negative impact of FDI on economic growth. The purpose of this study is to confirm the relationship between various economic…

Abstract

Purpose

Economic literature highlights both positive and negative impact of FDI on economic growth. The purpose of this study is to confirm the relationship between various economic factors and FDI equity inflows and find out deviations, if any. This is investigated using standard time-series econometric models. The long and short run relationship is inquired with respect to market size, inflation rate, level of infrastructure, domestic investment and openness to trade. The choice of variables for Indian economy is purely based on empirical observations obtained from scientific literature review.

Design/methodology/approach

The study involves application of autoregressive distributive lag (ARDL) model to investigate the relationship. The long run co-integration between FDI and economic growth is tested by Pesaran ARDL model. The stationarity of data is tested by augmented Dickey Fuller test and Phillip–Perron unit root test. Error correction model is applied to study the short run relationship using Johansen’s vector error correction model method besides other tests.

Findings

The results show that the domestic investment, inflation rate, level of infrastructure and trade openness influence inward FDI flows. These factors have both long and short-term relationship with FDI inflows. However, market size is insignificant in influencing the foreign investments inflows. There lies an inverse relation between FDI and inflation rate.

Originality/value

To the best of the authors’ knowledge, the study is original. The methodology and interpretation of results are distinct and different from other similar studies.

Details

Vilakshan - XIMB Journal of Management, vol. 21 no. 1
Type: Research Article
ISSN: 0973-1954

Keywords

Open Access
Article
Publication date: 25 February 2020

Mousa Pazhuhan and Narges Shiri

This paper aims to identify and determine regional tourism axes in Hormozgan Province, Iran, as a region with significant potential

1935

Abstract

Purpose

This paper aims to identify and determine regional tourism axes in Hormozgan Province, Iran, as a region with significant potential

Design/methodology/approach

The research method is quantitative and uses the fuzzy accreditation tool and TOPSIS model; the identification, determination and ranking of regional tourism axes have been performed by analyzing the spatial distribution of tourism attractions in the GIS environment.

Findings

The results show that given the capacities of Hormozgan Province, at least 15 axes are recognizable. This paper highlights regional tourism planning as a tool for urban and rural socio-economic development in potential provinces such Hormozgan.

Originality/value

This study provides a number of practical implications for regional tourism development as follows: it identifies some of the most important potential axes in Hormozgan Province, which can be considered as investment areas in the national and regional tourism development strategy. The spatial results of this study could be embedded in all urban and rural developmental plans in the province. Tourism investment should shift its spatial concentration from the spot approach, especially islands and cities, to the axis approach while equipping those axes as comprehensive spatial strategic regional tourism plans. Sectoral tourism in each sector including sports, economy and nature could be planned as if sectoral institutions and organizations are going to develop their own tourism goals.

Details

Journal of Tourism Analysis: Revista de Análisis Turístico, vol. 27 no. 2
Type: Research Article
ISSN: 2254-0644

Keywords

Open Access
Article
Publication date: 2 August 2021

Cecilia Pasquinelli and Mariapina Trunfio

This paper aims to exploit existing tourism knowledge to frame the unprecedented pandemic tourism crisis, its key aspects and impacts on the tourism industry. It builds a…

3274

Abstract

Purpose

This paper aims to exploit existing tourism knowledge to frame the unprecedented pandemic tourism crisis, its key aspects and impacts on the tourism industry. It builds a conceptual bridge and discusses the opportunity to capitalise on the missing link between the pre-COVID overtourism and the post-COVID “undertourism” debates.

Design/methodology/approach

A cross-fertilisation between the overtourism knowledge and the emerging COVID-19 literature stream is proposed and supported by an online media analysis focussing on the Italian tourism debate on Twitter. A text analysis of 2,500 posts helps discuss the conceptual framework.

Findings

The analysed Twitter debate prioritised socio-economic impacts, regulative actions and the recovery approach, representing government as the pivotal actor to overcome the pandemic crisis. An integrative interpretative framework results from this research, opening three areas of inquiry, such as the recovery–reform continuum, managerial approaches beyond regulative frames of action and a critical sizing of digital technologies deployment.

Research limitations/implications

Samples with different geographical and temporal coverage may provide further and multifaceted insights into the emerging tourism online media debate.

Originality/value

An original conceptualisation counter-intuitively frames post-pandemic tourism scenarios. Additional elements of originality are the online media analysis contributing to the emerging COVID-19 agenda and the use of Twitter social platform to investigate the tourism debate.

Details

Journal of Place Management and Development, vol. 15 no. 3
Type: Research Article
ISSN: 1753-8335

Keywords

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