Value as a Measure of Tourism Performance in the Era of Globalization: Conceptual Considerations and Empirical Findings

Abstract

In general, both the World Tourism Organization (WTO) and the World Travel and Tourism Council (WTTC) consider the trends of tourist arrivals and receipts as indicators in comparing the performance of destinations and regions. These considerations are based on the annual average percentage change in arrivals and receipts and a comparison that is made across time. This methodology is incomplete, however, particularly in light of the new exigencies of globalization. The study proposes an alternative approach based on the concept of value. Value is founded on the premises of microeconomics, and it provides more reliable and effective information to improve the quality of both policy formulation and business decisions. Using partial correlation analysis, the study introduced a time trend variable as a proxy of value. The study developed a panel of observations from 1986 to 2001 for 32 countries worldwide. In terms of performance, the results of the alternative approach differ dramatically from those obtained in conventional methodology.