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on Tourism Economics |
| By: | Schling, Maja; Guerrero Compeán, Roberto; Pazos, Nicolás; Bailey, Allison; Arkema, Katie; Ruckelshaus, Mary |
| Abstract: | This paper assesses the local economic impact of pelagic Sargassum seaweed washed ashore in tourism-heavy coastal zones in the Mexican State of Quintana Roo. The study relies on a carefully designed Geographic Information Systems (GIS) dataset of monthly observations from 2016 to 2019 for 157 beach segments. The dataset comprises an innovate measure of Sargassum seaweed presence, remotely sensed nighttime light intensity as a proxy of economic growth, as well as information on key infrastructure, sociodemographic and beach characteristics. We apply a fixed-effects regression model that controls for general time trends and unobserved, time-invariant differences across observations. We estimate that the presence of Sargassum in a beach segment reduces nighttime light intensity by 17.5%, representing an approximate 11.6% decrease in gross local product. Considering that impacts of Sargassum on local economic activity may be delayed due to reputational effects, our analysis finds that significant lagged effects can be detected up until 12 months after Sargassum was detected on the shoreline. These effect sizes range between a 5.9 and a 9.9% reduction in gross local product. Various robustness checks, including an adjusted measurement of Sargassum and the consideration of potential spatial correlation across beach segments, indicate that estimated impacts are consistently significant and negative across numerous specifications. For one of most tourism-dependent regions in the world, the recurrent influx is one of the most threatening manifestations of climate change. Our research is the first to robustly quantify the economic impact of Sargassum, and highlights the extent to which economic activity is negatively affected by the accumulation of seaweed and how these effects persist over time. The next important step is for both public and private sectors to invest in forecasting systems and containment strategies as well as engage in cleanup efforts to mitigate severe accumulations, inducing economic resilience in coastal communities. |
| Keywords: | Sargassum;economic growth;coastal zone management;Mexico;coastal zonemanagement |
| JEL: | C23 C52 N56 O44 Q56 R11 Z32 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:12460&r=tur |
| By: | John C. Whitehead; William P. Anderson, Jr.; Dennis Guignet; Craig E. Landry; O. Ashton Morgan |
| Abstract: | We estimate economic benefits of avoiding reductions in drinking water quality due to sea level rise accruing to North Carolina (NC) coastal tourists. Using stated preference stated preference methods data with recent coastal visitors, we find that tourists are 2%, 8%, and 11% less likely to take an overnight trip if drinking water tastes slightly, moderately, or very salty at their chosen destination. The majority of those who decline a trip would take a trip to another NC beach without water quality issues, others would take another type of trip, with a minority opting to stay home. Willingness to pay for an overnight beach trip declines with the salty taste of drinking water. We find evidence of attribute non-attendance in the stated preference data, which impacts the regression model and willingness to pay for trips. Combining economic and hydrology models, annual aggregate welfare losses due to low drinking water quality could be as high as $401 million, $656 million and $1.02 billion in 2040, 2060 and 2080. Key Words: Attribute non-attendance, barrier-island aquifers, sea-level rise, stated preference, tourism |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:apl:wpaper:23-09&r=tur |
| By: | Maximilian Schaefer (Institut Mines-Télécom Business School, Department of Law, Economics and Finance, 9 rue Charles Fourrier, 91000 Evry, France); Kevin Ducbao Tran (University of Bristol, School of Economics, 12 Priory Road, Bristol BS8 1TU, United Kingdom) |
| Abstract: | We analyze competition between hotels and Airbnb listings as well as the effect of Airbnb on consumer welfare, hotel profits, and Airbnb host surplus. For this purpose, we use granular daily-level data from Paris for the year 2017. We estimate a random coefficient logit model of demand. We extend prior research by accounting for the localized nature of competition within districts of the city. Our results suggest that demand is segmented by district as well as accommodation type. Based on these demand estimates, we estimate separate supply-side models for hotels and Airbnb, to account for differences in price setting we observe in the data. Using the estimated models, we assess how Airbnb affects hotel profits and consumer welfare and how much Airbnb hosts value the platform. Our simulations imply that Airbnb increases average consumer surplus and decreases hotel profits substantially. Airbnb hosts seem to value the platform moderately. |
| Keywords: | hotel industry; short-term rentals; localized competition; consumer welfare; sharing economy; peer-to-peer markets; Airbnb |
| JEL: | D4 D6 L1 Z38 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:net:wpaper:2304&r=tur |
| By: | Gajendra Liyanaarachchi (University of Portsmouth); Giampaolo Viglia (University of Portsmouth); Fidan Kurtaliqi (Audencia Business School) |
| Abstract: | Purpose This study aims to investigate the implications, risks and challenges of data privacy due to the use of immersive technology in the hospitality industry. Design/methodology/approach The authors adopt a mixed-method approach. Study 1 is a focus group. The authors then provide external and ecological validity with a field experiment conducted with 139 hotel clients at a three-star continental European hotel. Findings Collecting biometric data results in unbalanced privacy compared to biographic data, as it diminishes individuals' control over their data and grants organizations absolute power. This unbalanced privacy directly influences consumers' willingness to disclose information, affecting their choice of hotels and access to services. Practical implications Hotels should redesign their strategies to accommodate heightened privacy risks with biometric data. This can be obtained by introducing systems that foster customer confidence in data usage and facilitate customers' willingness to disclose biometrics through immersive technology or biographic data. Originality/value This study introduces unbalanced privacy as a unique state due to sharing biometric data. The authors propose a novel doctrine, the uncontrollable privacy paradox, which is a shift from the privacy paradox. The uncontrollable privacy paradox addresses the unbalanced privacy envisaged through consumer powerlessness in data management. This research addresses the literature gap on the privacy paradox by offering a broader perspective, including business, industry and mixed reality considerations. |
| Date: | 2023–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04219606&r=tur |