On the Economic Rationality of Fluctuations in Tourist Frequentation at Nature-Based Destinations: The Case of Corsican Seaside Hotels

Abstract

This paper answers a simple question: are fluctuations, and especially temporary slowdowns or decline, in frequentation always harmful for a tourist destination? The author proposes a simple theoretical model for a nature-based destination, in which a tourist's willingness to pay (WTP) depends on the environmental quality of the place. He hypothesizes that, at some points in time, there is a rational economic incentive to experience a temporary decrease in frequentation in order to allow the stock of natural assets to regenerate. The author uses a sample of 80 seaside hotels in Corsica to show that tourists' WTP for a night stay depends positively on environmental quality. The results indicate that a deterioration of the environmental quality of the destination would reduce the WTP for a night stay in Corsica by more than 25%. This finding tends to confirm the paper's initial hypothesis since, if the environmental quality of Corsica falls, rational hotel owners should ask for a limited and temporary slowdown in frequentation so that the environmental quality and the WTP can regain a higher and more profitable level.