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Book Details
Abstract
Tourism Economics and Policy combines a comprehensive treatment of economic concepts and applications in tourism contexts. The topics covered are those that most occupy the attention of tourism economists in research and policy areas internationally. Content includes tourism demand and forecasting; tourism supply and pricing; measuring tourism’s economic contribution using tourism satellite accounts; measuring the impacts and benefits of changes in tourism demand, contrasting Input-output and computable general equilibrium modelling; cost benefit analysis; economic evaluation of special events; tourism investment and infrastructure; tourism taxation; aviation and tourism issues, tourism and the environment (including climate change) and destination competitiveness. The text provides an excellent basis for students to appreciate the relevance of economic analysis to the solution of real life tourism issues as well as its importance for decision making by both destination managers and tourism operators.
Larry Dwyer and Peter Forsyth are internationally reputed tourism economists who have made substantial contributions to the discipline over many years particularly in the area of tourism policy analysis. Larry Dwyer is Qantas Professor of Tourism Economics at the University of New South Wales, Australia while Peter Forsyth is Professor of Economics at Monash University, Australia. Wayne Dwyer, formerly senior lecturer in economics and finance at the University of Western Sydney specialises in managerial economics.
Tourism Economics and Policy is a timely and significant contribution to tourism education and research. The book is suitable for both senior undergraduate and postgraduate students who are pursuing tourism and hospitality related degrees. Researchers and policymakers will also find the book very useful, as it brilliantly integrates various economic theories with tourism practices.
Tourism Economics and Policy is a tome that should be on the shelf of every serious tourism scholar since it addresses the measurement of every aspect of tourism as well as all major themes. It does so in a language that is accessible to non-economists by not assuming that the terminology will be understood, using formulae sparingly, and providing illustrations where possible. This book provides an excellent insight into the application of economic concepts and their application to tourism, and would lend itself to animated debates, particularly at the graduate level. However, many of the topics should also supplement the teaching of the various subjects at the undergraduate level, as they would add a depth not commonly encountered, yet of increasing importance to understanding the complexity of tourism phenomena. Policy-makers would be well advised to read this book and incorporate the rigour it provides into their activities. Marion Joppe, School of Hospitality and Tourism Management, University of Guelph, Ontario, Canada in Tourism Planning & Development
This excellent book is a valuable resource for anyone wishing to understand the application of economic thought to the fascinating field of tourism. Its style is both rigorous and readable, and students will value the many user-friendly resources provided by the authors. Real strengths of the book are its policy perspective, its comprehensive coverage, and its inclusion of environmental issues.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Contents | v | ||
| Preface | xvii | ||
| 1 Overview | 1 | ||
| Tourism Demand and Forecasting | 5 | ||
| Tourism Supply and Pricing Strategies | 8 | ||
| Distinguishing the Economic Contribution, Economic Impacts and Net Benefits of Tourism | 11 | ||
| Measuring Tourism’s Economic Contribution, Impacts and Net Benefits | 12 | ||
| Tourism Investment | 19 | ||
| Taxation and Tourism | 23 | ||
| Tourism and Aviation | 25 | ||
| Tourism and the Environment | 26 | ||
| Destination Competitiveness | 31 | ||
| Directions for Tourism Research | 33 | ||
| Tourism Demand and Forecasting | 35 | ||
| 2 Demand for Tourism | 37 | ||
| 2.1 Introduction | 37 | ||
| 2.2 Factors Influencing Tourism Demand | 37 | ||
| 2.3 Tourism Demand and Elasticity | 41 | ||
| 2.4 Modelling Tourism Demand | 54 | ||
| 2.5 Measuring Demand for International Tourism Arrivals | 59 | ||
| 2.6 Conclusions and Policy | 79 | ||
| 3 Forecasting Tourism Demand | 83 | ||
| 3.1 Introduction | 83 | ||
| 3.2 The Importance of Forecasting in Tourism | 84 | ||
| 3.3 Forecasting Approaches | 88 | ||
| 3.4 Qualitative Approaches to Forecasting | 89 | ||
| 3.5 Time-Series Approaches to Forecasting | 94 | ||
| 3.6 Barometric Techniques | 110 | ||
| 3.7 Econometric Approaches to Forecasting | 114 | ||
| 3.8 The Quest for Forecasting Accuracy | 122 | ||
| 3.9 A Hybrid or Integrative Approach | 125 | ||
| 3.10 Conclusions and Policy | 129 | ||
| Tourism Supply and Pricing Strategies | 133 | ||
| 4 Tourism Supply | 135 | ||
| 4.1 Introduction | 135 | ||
| 4.2 Factors Influencing Tourism Supply | 139 | ||
| 4.3 Tourism Supply and Elasticity | 141 | ||
| 4.4 Production, Costs and Supply | 143 | ||
| 4.5 Consumer Surplus and Producer Surplus | 153 | ||
| 4.6 Tourism Market Structure | 154 | ||
| 4.7 Tourism Supply Chains and Firm Structure | 167 | ||
| 4.8 Conclusions and Policy | 172 | ||
| 5 Strategic Pricing in Tourism | 176 | ||
| 5.1 Introduction | 176 | ||
| 5.2 Competitive Strategies | 178 | ||
| 5.3 Competitive Pricing Strategies | 180 | ||
| 5.4 Non-competitive (Collusive) Pricing Strategies | 197 | ||
| 5.5 Hedonic Modelling to Inform Strategic Pricing | 200 | ||
| 5.6 Conclusions and Policy | 206 | ||
| Distinguishing the Economic Contribution, Economic Impacts and Net Benefits of Tourism | 211 | ||
| 6 Tourism’s Economic Contribution, Economic Impacts and Net Benefits | 213 | ||
| 6.1 Introduction | 213 | ||
| 6.2 The Economic Contribution of Tourism | 213 | ||
| 6.3 The Economic Impacts of Tourism | 216 | ||
| 6.4 The Costs and Benefits of Tourism | 221 | ||
| 6.5 Sources of Costs and Benefits | 224 | ||
| 6.6 Economy-Wide Effects on Net Benefits | 232 | ||
| 6.7 Conclusions and Policy | 233 | ||
| Measuring Tourism’s Economic Contribution, Impacts and Net Benefits | 237 | ||
| 7 The Economic Contribution of Tourism: Tourism Satellite Accounts | 239 | ||
| 7.1 Introduction | 239 | ||
| 7.2 What is a TSA? | 241 | ||
| 7.3 The Importance of TSA | 246 | ||
| 7.4 Updating TSA | 256 | ||
| 7.5 Regional TSA | 258 | ||
| 7.6 TSA as a Policy Instrument | 265 | ||
| 7.7 Using TSA: Developing Measures of Tourism Performance | 267 | ||
| 7.8 Conclusions and Policy | 279 | ||
| 8 Economic Impacts of Tourism Using Input–Output Models | 282 | ||
| 8.1 Introduction | 282 | ||
| 8.2 Purpose of Economic Impact Analysis | 283 | ||
| 8.3 The Tourism ‘Multiplier’ | 284 | ||
| 8.4 Multipliers Based on I–O Models | 288 | ||
| 8.5 Limitations of Tourism I–O Multipliers | 300 | ||
| 8.6 How Tourism Multipliers are Misused | 309 | ||
| 8.7 Conclusions and Policy | 312 | ||
| 9 Economic Impacts of Tourism: CGE Modelling | 316 | ||
| 9.1 Introduction | 316 | ||
| 9.2 The Structure of a CGE Model | 317 | ||
| 9.3 Economic Impact Assessment Using CGE Models | 328 | ||
| 9.4 Strengths and Limitations of CGE Modelling | 359 | ||
| 9.5 Conclusions and Policy | 362 | ||
| 10 Cost-Benefit Analysis | 365 | ||
| 10.1 Introduction | 365 | ||
| 10.2 CBA | 367 | ||
| 10.3 When to Use CBA | 368 | ||
| 10.4 Eight Main Steps in Performing CBA | 372 | ||
| 10.5 Other Issues in Conducting a CBA | 392 | ||
| 10.6 Cost-Effectiveness Analysis | 400 | ||
| 10.7 Policy and Conclusions | 402 | ||
| 11 Economic Evaluation of Special Events | 405 | ||
| 11.1 Introduction | 405 | ||
| 11.2 The Logic of Government Support for Special Events | 407 | ||
| 11.3 Estimating Event-Related ‘New’ Expenditure | 409 | ||
| 11.4 The Economic Impact of an Event | 418 | ||
| 11.5 Challenges to Best Practice Event Assessment | 419 | ||
| 11.6 Estimating the Economic Impacts of Events Using CGE Models | 430 | ||
| 11.7 CBA of Events | 436 | ||
| 11.8 Improving Event Evaluation | 452 | ||
| 11.9 Conclusions and Policy | 453 | ||
| Tourism Investment | 457 | ||
| 12 Investment by Tourism Firms | 459 | ||
| 12.1 Introduction | 459 | ||
| 12.2 Categories of Tourism Investment | 460 | ||
| 12.3 Sources of Capital Investment Financing | 462 | ||
| 12.4 Generating Capital Investment Proposals | 464 | ||
| 12.5 The Optimal Level of Investment | 464 | ||
| 12.6 Selecting Capital Investment Projects | 467 | ||
| 12.7 Challenges Facing Tourism Investment | 476 | ||
| 12.8 Conclusions and Policy | 486 | ||
| 13 Investing in Tourism Infrastructure | 489 | ||
| 13.1 Introduction | 489 | ||
| 13.2 Public Infrastructure Investment for Economic Development | 492 | ||
| 13.3 Infrastructure Provision: The New Model | 494 | ||
| 13.4 The Congestion Problem in Tourism Infrastructure | 497 | ||
| 13.5 Regulating Tourism Infrastructure | 503 | ||
| 13.6 Environmental Constraints and Trade-Offs | 505 | ||
| 13.7 Infrastructure and Tourism Growth: Necessary but not Sufficient | 506 | ||
| 13.8 Tourism Infrastructure in Developing Countries | 507 | ||
| 13.9 Conclusions and Policy | 508 | ||
| 14 Foreign Direct Investment | 511 | ||
| 14.1 Introduction | 511 | ||
| 14.2 Patterns of FDI in Tourism | 512 | ||
| 14.3 Motives for FDI in Tourism | 514 | ||
| 14.4 Effects of FDI on Host Destination | 516 | ||
| 14.5 Potential Benefits of FDI to Host Destination | 517 | ||
| 14.6 Potential Costs of FDI to Host Destination | 521 | ||
| 14.7 Domestic Ownership versus Foreign Ownership | 531 | ||
| 14.8 Conclusions and Policy Implications | 533 | ||
| Taxation and Tourism | 537 | ||
| 15 Tourism Taxation | 539 | ||
| 15.1 Introduction | 539 | ||
| 15.2 Types of Tourism Taxation | 541 | ||
| 15.3 Effects of Taxation | 541 | ||
| 15.4 Principles of Good Taxation | 552 | ||
| 15.5 Arguments for Taxing Tourism | 557 | ||
| 15.6 Arguments against Tourism Taxation | 564 | ||
| 15.7 Earmarking of Specific Tourism Taxes | 573 | ||
| 15.8 Conclusions and Policy | 577 | ||
| Tourism and Aviation | 581 | ||
| 16 Aviation and Tourism | 583 | ||
| 16.1 Introduction | 583 | ||
| 16.2 Aviation and Tourism – the Policy Conflicts | 584 | ||
| 16.3 Aviation Technology and Its Economic Consequences | 588 | ||
| 16.4 Airline Liberalisation and Tourism Growth | 596 | ||
| 16.5 Airport Capacity and Patterns of Tourism | 607 | ||
| 16.6 Taxing Tourism and Aviation | 615 | ||
| 16.7 Aviation and Tourism: Supply-Side Integration | 616 | ||
| 16.8 Aviation Alliances | 617 | ||
| 16.9 Conclusions and Policy | 623 | ||
| Tourism and the Environment | 627 | ||
| 17 Valuing the Environmental Impacts of Tourism | 629 | ||
| 17.1 Introduction | 629 | ||
| 17.2 The Potential Impacts of Tourism on the Environment | 630 | ||
| 17.3 Market Failure | 632 | ||
| 17.4 Environmental Preservation versus Development | 641 | ||
| 17.5 Valuing the Impacts of Tourism on the Environment: Total Economic Value | 642 | ||
| 17.6 Estimating the Non-Use Value of Environmental Amenities | 646 | ||
| 17.7 Conclusions and Policy | 673 | ||
| 18 Economic Instruments and Environmental Protection in Tourism | 677 | ||
| 18.1 Introduction | 677 | ||
| 18.2 The Optimal Level of Pollution | 678 | ||
| 18.3 Insights from Economic Theory | 680 | ||
| 18.4 Strategies for Pollution Control | 681 | ||
| 18.5 Assessing Economic Instruments to Protect the Environment | 698 | ||
| 18.6 Conclusions and Policy | 704 | ||
| 19 Climate Change and Tourism | 707 | ||
| 19.1 Introduction | 707 | ||
| 19.2 Climate Change and Tourism: A Two-Way Interaction | 709 | ||
| 19.3 Climate Change Impacts on Tourism | 710 | ||
| 19.4 Adaptation Policies for Tourism | 715 | ||
| 19.5 Tourism Impacts on Climate Change | 719 | ||
| 19.6 Climate Change Mitigation Policies | 727 | ||
| 19.7 Climate Change and Aviation | 747 | ||
| 19.8 Conclusions and Policy | 749 | ||
| Destination Competitiveness | 755 | ||
| 20 Destination Competitiveness | 757 | ||
| 20.1 Introduction | 757 | ||
| 20.2 Factors Underpinning Destination Competitiveness | 759 | ||
| 20.3 The Travel and Tourism Competitiveness Index | 762 | ||
| 20.4 Destination Competitiveness by Niche Market | 766 | ||
| 20.5 Destination Price Competitiveness | 768 | ||
| 20.6 Different Measures of Destination Price Competitiveness | 773 | ||
| 20.7 Horses for Courses: Which Price Competitiveness Indicator? | 787 | ||
| 20.8 Conclusions and Policy | 790 | ||
| Future Directions | 793 | ||
| 21 Future Directions for Research in Tourism Economics | 795 | ||
| Tourism Demand and Forecasting | 796 | ||
| Supply and Pricing | 798 | ||
| Economic Contribution and Economic Impacts | 800 | ||
| Costs and Benefits | 803 | ||
| Investment and Infrastructure | 804 | ||
| Taxation | 806 | ||
| Transport | 807 | ||
| Environment | 808 | ||
| Destination Competitiveness | 810 | ||
| References | 812 | ||
| About the authors | 841 | ||
| Index | 843 |