Economics of Sustainable Tourism (Routledge Critical Studies in Tourism, Business and Management)

205 Pages·2010·4.64 MB·English

by  Fabio Cerina

Economics of Sustainable Tourism
Tourism is one of the world’s largest industries and one of its fastest- growing
economic sectors, helping to generate income and employment for local people.
At the same time, it has many negative outsourced effects on the environment
and local culture. Achieving a more sustainable pattern of tourism development
is high on the global agenda, aiming to meet human needs while preserving the
environment now and for the future.
Economics of Sustainable Tourism aims to critically explore how tourism
economic development can move closer to a sustainable ideal from a firm eco-
nomic analytical anchor. Grounded in economic theory and application, it analy-
ses tourists’ satisfaction and impacts of tourism on the host community,
investigates the productivity of the industry and identifies factors that could
increase economic and sustainable development, such as trade relationships. It
offers further insight into how destinations’ sustainability can be measured and
the economic benefits of more sustainable destinations, and sets the agenda for
future research. The book includes a range of theoretical and empirical perspec-
tives and includes cutting-e dge research from international scholars.
This significant volume provides a new perspective on the sustainable tourism
debate and will be valuable reading for students, researchers and academics in
the fields of tourism and economics.
Fabio Cerina is Lecturer in Economic Policy at the Department of Social and
Economic Research, University of Cagliari, and Research Fellow at the Center
for North South E conomic Research (CRENoS).
Anil Markandya is Professor of Economics at the University of Bath, UK and
Scientific Director of the Basque Centre for Climate Change in Bilbao, Spain.
Michael McAleer is Distinguished Professor, Department of Quantitative
Economics, Complutense University of Madrid, Spain.
Routledge critical studies in tourism, business and
management
Series editors: Tim Coles
University of Exeter, UK,
and
Michael Hall
University of Canterbury, New Zealand.
This ground- breaking monograph series deals directly with theoretical and concep-
tual issues at the interface between business, management and tourism studies. It
incorporates research-g enerated, highly specialized cutting-e dge studies of new and
emergent themes, such as knowledge management and innovation, that affect the
future business and management of tourism. The books in this series are conceptu-
ally challenging, empirically rigorous, creative and, above all, capable of driving
current thinking and unfolding debate in the business and management of tourism.
This monograph series will appeal to researchers, academics and practitioners in the
fields of tourism, business and management, and the social sciences.
Published titles:
Commercial Homes in Tourism
An international perspective (2009)
Edited by Lynch, McIntosh and Tucker
Sustainable Marketing of Cultural and Heritage Tourism
Chhabra
Economics of Sustainable Tourism
Edited by Cerina, Makandya and McAleer
The Routledge Critical Studies in Tourism, Business and Management mono-
graph series builds on core concepts explored in the corresponding Routledge
International Studies of Tourism, Business and Management book series. Series

editors: Tim Coles, University of Exeter, UK and Michael Hall, University of
Canterbury, New Zealand.
Books in the series offer upper- level undergraduates and master’s students
comprehensive, thought- provoking yet accessible books that combine essential
theory and international best practice on issues in the business and management
of tourism such as HRM, entrepreneurship, service quality management, leader-
ship, CSR, strategy, operations, branding and marketing.
Published titles:
International Business and Tourism (2008)
Coles and Hall
Economics of Sustainable
Tourism
Edited by Fabio Cerina,
Anil Markandya and
Michael McAleer
First published 2011
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
270 Madison Avenue, New York, NY 10016
Routledge is an imprint of the Taylor & Francis Group, an informa business
This edition published in the Taylor & Francis e-Library, 2010.
To purchase your own copy of this or any of Taylor & Francis or Routledge’s
collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.
© 2011 Fabio Cerina, Anil Markandya and Michael McAleer
The right of Fabio Cerina, Anil Markandya and Michael McAleer to be
identified as editors of this work has been asserted by them in accordance
with the Copyright, Designs and Patent Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloguing in Publication Data
Economics of sustainable tourism / edited Fabio Cerina, Anil Markandya,
and Michael McAleer.
p. cm.
Includes bibliographical references and indexes.
1. Sustainable tourism. I. Cerina, Fabio. II. Markandya, Anil, 1945–

III. McAleer, Michael.
G156.5.S87E26 2010
338.49791–dc22
2010013214
ISBN 0-203-84233-2 Master e-book ISBN
ISBN: 978-0-415-58385-5 (hbk)
ISBN: 978-0-203-84233-1 (ebk)
Contents
List of figures vii
List of tables viii
Notes on contributors x
The economics of sustainable tourism: an overview 1
FABIO CERINA, ANIl MARkANDyA AND MICHAEl McALEER
PART I
Tourism demand and the host community 7
1 Time series modelling of tourism demand from the United
States, Japan and Malaysia to Thailand 9
yAOvARATE CHAOvANAPOONPHOl, CHRISTINE lIM,
MICHAEL McAlEER AND AREE WIBOONPONGSE
2 Determinants of tourist satisfaction at sun and sand mass
destinations 24
JOAquíN AlEGRE MARTíN AND JAuME GARAu TABERNER
3 Determinant attitudes to tourism in a mass tourist destination:
a comparativ e- static analysis 41
EuGENI AGuIló PéREz AND JAuME ROSSElló NADAl
4 A panel data analysis of residential water demand in a
Mediterranean tourist region: the case of Sardinia 58
vANIA STATzu AND ElISABETTA STRAzzERA
vi Contents
PART II
Tourism and productivity 77
5 Pollution- averse tourists and growth 79
FABIO CERINA AND SAuvEuR GIANNONI
6 On the relationship between tourism and trade 92
MARíA SANTANA GAllEGO,
FRANCISCO J. lEDESMA RODRíGuEz AND
JORGE v. PéREz RODRíGuEz
7 Evaluating labour productivity of diversifying rural tourism:
evidence from Japan 108
yASuO OHE
PART III
Sustainable tourism: environment and cultural heritage
conservation 127
8 Clustering tourism destinations by means of composite
indices of sustainability 129
JuAN IGNACIO PulIDO FERNáNDEz AND
MARCElINO SáNCHEz RIvERO
9 Equilibrium dynamics and local indeterminacy in a model of
sustainable tourism 151
GIOvANNI BEllA
10 How tourism can help preserve cultural heritage sites:
constructing optimal entrance fee schemes to collect visitors’
WTP for the World Heritage Site My Son in Vietnam 168
TRAN Huu T uAN, NGuyEN vAN PHAT AND STÅlE NAvRuD
The economics of sustainable tourism: summary and
suggestions for future research 187
FABIO CERINA, ANIl MARkANDyA AND MICHAEl McALEER
Index 189
Figures
1.1 Numbers of tourist arrivals from the United States, Japan and
Malaysia to Thailand, 1971–2005 10
1.2 Annual growth rate of tourist arrivals from the United States,
Japan and Malaysia to Thailand, 1971–2005 11
1.3 Consumer price index of the United States, Japan and Malaysia,
1971–2005 15
2.1 Relationship between the performance of a basic factor and
overall satisfaction 29
2.2 Relationship between the performance of an excitement factor
and overall satisfaction 30
2.3 Importance grid of factors at sun and sand destinations 33
2.4 Penalty–reward analysis 35
3.1 The Balearic Islands (Spain) 44
4.1 Tourist impact map of municipalities of Sardinia (IT) 73
6.1 The shifting-consumption effect of tourism on trade 95
6.2 The biased-consumption effect of tourism on trade 96
6.3 Total tourism, United Kingdom 98
6.4 Total trade, united kingdom 99
6.5 Impulse(trade)–response(total tourism) 104
6.6 Impulse(total tourism)–response(trade) 105
7.1 Diversified markets for rural tourism and market equilibrium 110
8.1 Profiles of A-segment regions 145
8.2 Profiles of B-segment regions 145

8.3 Profiles of C-segment regions 145
8.4 Profiles of D-segment regions 146
9.1 The 3D environmental constraint 155
9.2 Evolution of q* = q*(γ) 158
10.1 Demand curve for access to a given site 181
Tables
1.1 Estimates of seasonal unit roots testing of tourist arrivals from
three major source countries to Thailand 15
1.2 Estimates of seasonal unit root tests of the consumer price
index 16
1.3 Estimates of the best-fitting ARIMA models for inbound
tourists from the United States, Japan and Malaysia to
Thailand 18
1.4 ARMAX model of log difference of tourist arrivals from the
united States, 1971–2005 19
1.5 ARMAX model of log seasonal difference of tourist arrivals
from Japan, 1978–2005 20
1.6 ARMAX model of log difference of tourist arrivals from
Malaysia, 1972–2005 20
1.7 ARMAX model of log difference of tourist arrivals from the
united States, 1971–2005 21
1.8 ARMAX model of log seasonal difference of tourist arrivals
from Japan, 1978–2005 22
1.9 ARMAX model of log difference of tourist arrivals from
Malaysia, 1972–2005 22
2.1 Destinations visited in the summer holidays of 2004–2006
(excluding the Balearic Islands) 31
2.2 Estimated coefficients for the penalty–reward analysis 34
2.3 The determin ants of competitiveness at sun and sand
destinations 36
3.1 Statements about resident attitudes to tourism 46–47
3.2 Influential variables 50
3.3 Estimated ordered logit models 52–53
4.1 Estimated daily presences in Sardinia in peak season at 2005 62
4.2 Tariff system and price level, 2000–2005 64
4.3 Tariff system and prices applied in 2005 by ABBANOA 65
4.4 Statistical description of variables 68
4.5 Estimation results 69
4.6 Test results 70
Tables ix
4.7 Water consumption estimates 72
6.1 Descriptive statistics 98
6.2 Augmented Dickey–Fuller test 99
6.3 Co-integration and causality between exports and tourism 101
6.4 Co-integration and causality between imports and tourism 102
6.5 Co-integration and causality between total trade and tourism 103
7.1 Relationship between the viability of a market and statistical
significance 112
7.2 Partial correlation coefficients between rural tourism activities
and variables of rural resources 116–117
7.3 Estimation results of marginal labour productivity of rural
tourism 118
7.4 Estimated labour productivity of rural tourism activity 121
7.5 Relationship between the existence of a market and statistical
significance 123
8.1 Tourism environmental indicators used in constructing the
composite tourism-sustainability indices 138
8.2 Aggregate indices of drivers, pressures, state and responses
estimated according to the WTTC method 139
8.3 Aggregate indices of drivers, pressures, state and responses
estimated according to the ESI method 140
8.4 Weighted aggregate indices for the DPSIR model using the
ST INDEX method 141
8.5 Aggregate indices of drivers, pressures, state and responses
estimated according to the ST INDEX method 142
8.6 Composite correlations (rM;S) of the DPSIR model elements
in the WTTC, ESI and ST INDEX methods 143
8.7 Segmentation of Spanish autonomous regions according to
tourism sustainability 144
9.1 Results of the equilibrium analysis 160
10.1 Description of the scenario provided to respondents 172
10.2 The Cv question for foreign visitors to My Son 173
10.3 Respondents’ perceptions towards the importance of preserving
World Heritage Sites 174
10.4 Respondents ’ socio-demographic characteristics 175
10.5 Respondent’s knowledge and attitudes 176
10.6 Estimated parameters of the logit models 177
10.7 Reasons for respondents not being willing to pay 179
10.8 Mean WTP estimates 180
10.9 Mean WTP estimates (US$) 180
10.10 A ggregate WTP estimates 181
10.11 E xpected revenue at different entrance fees 182