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on Tourism Economics |
| By: | María Santana-Gallego (Universidad de La Laguna); Francisco J. Ledesma-Rodríguez (Universidad de La Laguna); Jorge V. Pérez-Rodríguez (Universidad de Las Palmas de Gran Canaria) |
| Abstract: | The main objective of this paper is to analyze the effect of the exchange rate arrangements on international tourism. The ambiguity of literature about the effect of exchange rate volatility contrasts with the magnitude of the impact of a common currency on trade. On the basis of a gravity equation we estimate a moderate effect of a currency union on tourism of almost 12%. Furthermore, we estimate a gravity equation for international trade, obtaining that the common currency effect on trade is reduced when tourism is introduced as a regressor. This suggests that tourism flows may contribute to explain the excessive magnitude of the estimated effect of a common currency on trade in this literature. Finally, we analyze the impact of several de facto exchange rate arrangements on tourism, finding that less flexible exchange rates promotes tourism flows. |
| Keywords: | Tourism, Exchange Rate Regime, Common Currency |
| JEL: | G15 |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:aee:wpaper:0707&r=tur |
| By: | Massimo Geloso Grosso; Molly Lesher; Enrico Pinali |
| Abstract: | This study analyses the role that services trade liberalisation could play in fostering tourism growth in developing countries. The economic and social importance of tourism means that the industry is high on the list of development priorities in many developing countries and LDCs. In order to have a successful tourism export industry, effective linkages need to be established with many different sectors, most of which are other services. Trade and investment liberalisation at the national, regional and multilateral levels can be a means to complement national efforts to attain these goals. Sustainable tourism development, though, requires strong public sector management and support. Due consideration needs to be given to develop effective regulation, including competition policy and institutions, to avoid exceeding the carrying capacity of assets, and to strengthen national capacity in order to minimise financial leakages. |
| Keywords: | trade, services, liberalisation, linkages, GATS |
| Date: | 2007–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:57-en&r=tur |