Abstract
Understanding the relationship between tourism demand and retail property prices is of great significance to tourist destinations, especially shopping destinations. The increase in tourism demand may alter the implicit prices of certain retail property characteristics (e.g., age and accessibility to transit). This study examines how tourism demand (measured by tourist volume) affects retail property prices in the tourist precinct of a shopping destination, namely Hong Kong. The implementation of the policy Individual Visit Scheme (IVS) in 2003 in Hong Kong has substantially increased tourist shoppers from Mainland China, and it is used as a quasi-natural experiment of the increased tourist volume. Spatial and non-spatial hedonic pricing models are developed based on the ground-floor retail property transaction data of Causeway Bay, Hong Kong before and after the IVS (1993–2011). The findings of this study are as follows. (1) Accessibility to transit has a larger positive price effect after the implementation of the IVS. (2) The implicit price of accessibility to accommodation facilities is not significantly altered by the implementation of the IVS. (3) Age has a larger negative price effect after the implementation of the IVS. The first two outcomes are related to the economic concerns of tourist shoppers, while the last can be explained by their hometown experience. Finally, practical implications are discussed.
Highlights
Driven by forces such as economic upswings and long holiday durations [1], tourism demand worldwide has dramatically increased in recent years
To address the abovementioned issues, this study examines the association between tourism demand, the increase in tourist shoppers, and retail property prices in Hong Kong under the hedonic framework
After comparing the performance of the spatial Durbin model (SDM) and the other two basic spatial econometric models, we find that the SDM performs best, which concurs with existing literature
Summary
Driven by forces such as economic upswings and long holiday durations [1], tourism demand worldwide has dramatically increased in recent years. Global international tourist volume (visitor arrivals) in 2018 saw a 5.4% increase, compared with 2017; and the growth of global international tourism receipts from 2017 to 2018 was 4.4% [2], while world GDP growth during the same period was only 3.0% (Source: https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG). On the one hand, shopping fulfills the utilitarian needs of tourists (purchasing miscellaneous necessities for daily needs and duty-free goods). In many cases, shopping is a major reason behind travel [7]. It is especially essential in the current era of materialism and consumption [6,7,8,9]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
