RELATIONS BETWEEN INFRASTRUCTURE INNOVATIONS AND TOURISM SPENDING IN DEVELOPED COUNTRIES: A MACROECONOMIC PERSPECTIVE

Beata Gavurova,Jaroslav Belas,Viera Ivankova,Martin Rigelsky,Katarina Valaskova

doi:10.3846/tede.2021.15361

Abstract

Tourism spending as well as innovations are characterized by great economic value, which emphasizes the need for their research from a macroeconomic perspective. The objective of the research was to assess the significance of the relations between infrastructure innovations and tourism spending in a sample of developed countries. The analytical processes included macroeconomic indicators expressing tourism spending and innovations. The research sample consisted of 36 countries of the Organization for Economic Co-operation and Development (OECD) (2010–2019). The analytical processes were primarily performed using robust panel regression and cluster analysis. One of the most important findings is that innovations in information and communication technologies (ICTs) were dominant in terms of the effects on tourism visitors' spending. The results showed that innovations in other areas of infrastructure (general infrastructure, ecological sustainability) should not be neglected either. The significant effects of selected innovation indicators showed positive trajectories. As a result, with the strengthening of innovation activities, an increase in tourism spending is expected, which may lead to economic development. It can be assumed that innovation efforts in countries such as Mexico, the Slovak Republic and Turkey could have great potential for improvement. Based on the results, innovations should be considered a part of tourism development strategies, while ICTs play an important role in this issue. It is desirable to support effective tools to increase the number of innovations in tourism. These innovation efforts at the national level may translate into higher tourism spending, which appears to be economically beneficial.

Highlights

Innovation is a fundamental pillar in improving living standards and can affect individuals, institutions, entire industries, economic sectors and countries in different ways (OECD & Eurostat, 2019)
The findings suggest that innovations should be considered a part of tourism development strategies, while information and communication technologies (ICTs) play an important role in the issue
This objective was achieved in three parts of the analytical processes, which consisted of descriptive analysis, regression analysis, and cluster analysis

Summary

Introduction

Innovation is a fundamental pillar in improving living standards and can affect individuals, institutions, entire industries, economic sectors and countries in different ways (OECD & Eurostat, 2019). The position of supply, which greatly affected the mass tourism market, was replaced by unstable demand, as the market was saturated with an increase in the number of destinations This provides an opportunity to develop innovative and creative thinking that supports the emergence of attractive tourism destinations and services. Innovations in information technology offer new opportunities, which has led to changes in the nature of this sector with environmental, socio-cultural, psychological and economic importance (Gossling, 2017). These aspects have a significant impact on traditional tourism business models. All these facts lead to the assumption that innovations in selected areas of infrastructure can be reflected in the spending of tourism visitors, which plays an important role in tourism characterized as a driving force of economic growth (Lee & Chang, 2008)

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