HANDBOOK OF TOURISM ECONOMICS Analysis, New Applications and Case Studies 7956_9789814327077_tp.indd 1 3/1/13 3:34 PM January3,2013 14:42 9.75x6.5 HandbookofTourismEconomics:Analysis... b1426-fm TThhiiss ppaaggee iinntteennttiioonnaallllyy lleefftt bbllaannkk HANDBOOK OF TOURISM ECONOMICS Analysis, New Applications and Case Studies editor Clement A Tisdell University of Queensland, Australia World Scientific NEW JERSEY • LONDON • SINGAPORE • BEIJING • SHANGHAI • HONG KONG • TAIPEI • CHENNAI 7956_9789814327077_tp.indd 2 3/1/13 3:34 PM Published by World Scientific Publishing Co. Pte. Ltd. 5 Toh Tuck Link, Singapore 596224 USA office: 27 Warren Street, Suite 401-402, Hackensack, NJ 07601 UK office: 57 Shelton Street, Covent Garden, London WC2H 9HE Library of Congress Cataloging-in-Publication Data Handbook of tourism economics : analysis, new applications, and case studies / [edited] by Clement A Tisdell. p. cm. Includes bibliographical references and index. ISBN 978-9814327077 1. Tourism. 2. Tourism--Case studies. I. Tisdell, C. A. (Clement Allan) G155.A1H352 2013 338.4'791--dc23 2012032309 British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library. Copyright © 2013 by World Scientific Publishing Co. Pte. Ltd. All rights reserved. This book, or parts thereof, may not be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording or any information storage and retrieval system now known or to be invented, without written permission from the Publisher. For photocopying of material in this volume, please pay a copying fee through the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. In this case permission to photocopy is not required from the publisher. In-house Editors: Lum Pui Yee/Dipasri Sardar Typeset by Stallion Press Email: [email protected] Printed in Singapore. Dipa - Hdbk of Tourism Economics.pmd 1 8/24/2012, 4:12 PM January22,2013 13:55 9.75x6.5 HandbookofTourismEconomics:Analysis... b1426-fm v CONTENTS Preface ix About the Editor xi Part I: An Overview 1 1. Overview of Tourism Economics 3 Clement Tisdell Part II: The Demand for Touring 31 2. Tourism Demand Models: Concepts and Theories 33 Sarath Divisekera 3. Empirical Estimation of Tourism Demand Models: A Review 67 Sarath Divisekera 4. Tourism Market Segmentation: A Step by Step Guide 87 Sara Dolnicar 5. Tourism Demand in Singapore: Estimating Neighbourhood Effects 105 Habibullah Khan and Tan Tat Teck, Francis 6. Demand and Cost Consequences of Violence Affecting Domestic Tourism: An Indian Case Study 121 Kunal Chattopadhyay Part III: The Supply of Tourist Services 135 7. The Internationalisation Process of Tourism Firms: The Case of the Hotel Sector 137 Z´elia Breda and Carlos Costa 8. The Lodging Sector and the Global Economy: China’s Hotel Industry in International Context 171 Liang Larry Yu and Huimin Gu January22,2013 13:55 9.75x6.5 HandbookofTourismEconomics:Analysis... b1426-fm vi Handbook of Tourism Economics 9. Travel and Tourism Intermediaries: Their Changing Role 191 Nevenka Cˇavlek 10. The Importance of the Air Transport Sector for Tourism 207 Andreas Papatheodorou and Petros Zenelis 11. Technical Progress in Transport and the Tourism Area Life Cycle 225 Andrew Kato and James Mak Part IV: Studies of Particular Segments of the Tourist Industry 257 12. The Nature and Development of Visitor Attractions 259 Stephen Wanhill 13. Travelling for Treatment: The Emergence of a Medical Tourist Industry 281 Grace Lordan 14. Education Tourism 299 LA Duhs 15. The Business of Amusement Parks: Their Development and Operation 317 Stephen Wanhill 16. Cruise Tourism 339 Adrian O Bull 17. Beach, Sun and Surf Tourism 361 Neil Lazarow, Mike Raybould and David Anning Part V: Cost-Benefit Analysis, Public Economics and Tourism 391 18. Tourism Projects and Cost-Benefit Analysis 393 Norbert Vanhove 19. Public Economics and the Assessment of Tourism Developments and Policies 417 Clement Tisdell and Clevo Wilson 20. Beaches as Societal Assets: Council Expenditures, Recreational Returns, and Climate Change 443 Boyd Dirk Blackwell, Mike Raybould and Neil Lazarow January3,2013 14:42 9.75x6.5 HandbookofTourismEconomics:Analysis... b1426-fm Contents vii Part VI: Inter-Industry Features of Tourism, Tourism Satellite Accounts 469 21. Estimating Tourism Impacts Using CGE Models: A Historical Review and Future Developments 471 Stephen Pratt 22. Tourism Satellite Accounts and their Applications in CGE Modelling 493 Tien Duc Pham and Larry Dwyer 23. The Direct and Indirect Contributions of Tourism to Regional GDP: Hawaii 523 Eugene Tian, James Mak and PingSun Leung 24. The Economic Impact of Tourism in the Central Region of Portugal: A Regional Economic Impact Study with Marketing Implications 543 Celeste Eus´ebio, Eduardo Anselmo de Castro and Carlos Costa Part VII: International Economic Issues and Tourism 573 25. Globalisation in Tourism: A Theoretical and Empirical Trade Examination 575 Jean-Jacques Nowak, Sylvain Petit and Mondher Sahli 26. International Tourism: Its Costs and Benefits to Host Countries 605 Chi-Chur Chao and Pasquale Sgro 27. Inbound Tourism and Economic Growth: A Review of Theory and Empirics 619 Mondher Sahli and Simon Carey Part VIII: Studies of the Contribution of Tourism to Economic Development 643 28. Economic Impacts of Tourism, Particularly its Potential Contribution to Economic Development 645 Tanja Mihaliˇc 29. Tourism Development, Conflicts and Sustainability: The Case of Goa 683 Z´elia Breda and Carlos Costa January3,2013 14:42 9.75x6.5 HandbookofTourismEconomics:Analysis... b1426-fm viii Handbook of Tourism Economics 30. Tourism Development in a Remote State: A Case Study of Arunachal Pradesh, India 705 Amitava Mitra and Maila Lama 31. Tourism Development at Zhangjiajie, China: Korean Tourists and their Impacts 725 Chao-zhi Zhang and Julie Jie Wen 32. The Contribution of Tourism to the Development of Fiji and other Pacific Island Countries 741 David Harrison and Biman Prasad Part IX: Environmental and Conservation Matters Involving Tourism 763 33. An Overview of Environmental and Conservation Issues of Consequence for Tourism Policy 765 Kristin M Jakobsson and Andrew K Dragun 34. Sustainable Tourism Development: Its Feasibility and Economic Value 787 Rajasundram Sathiendrakumar 35. Ecotourism as an Instrument to Conserve Biodiversity 813 Andreas Hohl 36. Eco Certification in Queensland’s Wet Tropics World Heritage Area: Is it Good for Business? 845 Michelle Esparon, Natalie Stoeckl and Emma Gyuris 37. The Economic Value of National Parks and Protected Areas as Tourism Attractions 871 Sally Driml 38. Communal Management of Ecotourism Based on Use of Common Pool Resources: Self Imposed Rules on Minami-Jima Island, Japan 885 Takayuki Arima, Toshio Kikuchi and Yoshihiro Kuronuma 39. Ecosystem Services Approach to Dive Tourism Management: A Case Study, Ras Mohammed National Park, Egypt 911 Rady T Tawfik and R Kerry Turner Author Index 943 Subject Index 967 January22,2013 13:55 9.75x6.5 HandbookofTourismEconomics:Analysis... b1426-fm ix PREFACE Tourism economics has in the last 20 or 30 years rapidly established itself as a distinct branch of knowledge. Its emergence and expansion is marked by the increasing frequency with which universities and tertiary educational institutions offer courses in tourism economics, the growing number of text books available on this subject, the accelerating number of research articles published in learned journals, and the fact that a successful international journal, Tourism Economics, has been established. As a consequence of these events, there has been a massive increase in knowledge and information about tourism economics and considerable advance has occurred in the methods and techniques employed by it. In addition, new applications have emerged and several interesting and novel case studies have been completed as well. One of the purposes of this hand- book is to make this new knowledge available to readers in an easily acces- sible and relatively comprehensive form. Consequently, this book provides an up-to-date overview of tourism economics — its analytical methods and techniques, its relevant theories and its applications. These are backed up by illustrations. Fresh insights on tourism economics are provided by sev- eral case studies. Contributors also put forward innovative ideas about this subject and provide critical but constructive assessment of developments in the field of tourism economics. Itshouldalsobenotedthatalthoughtourismeconomicshasemergedasa distinct subject, it nevertheless, remains more interdisciplinary in character than mainstream economics. Thus, the subject matter of tourism economics often includes consideration of institutional and psychological features not given much consideration in mainstream economics. This is reflected in sev- eral contributions in this book. It is gratifying that experts from many countries and cultural back- grounds have contributed to this book. This has made the preparation of this handbook a truly global enterprise and has widened its perspectives. Isincerelythankallcontributorsfortheirefforts,theirwillingnesstorespond to my queries, and suggestions and their patience in waiting for the publi- cation of the book. I also want to thank Evelyn Smart for the uniform formatting and word-processing of the complete manuscript for this book and for assisting