Finnish Tourism Research Articles

Asymmetric Risk Impacts of Chinese Tourists to Taiwan

Since 2008, when Taiwan’s President Ma Ying-Jeou relaxed the Cross-Strait policy, China has become Taiwan’s largest source of international tourism. In order to understand the risk persistence of Chinese tourists, the paper investigates the short-run and long-run persistence of shocks to the change rate of Chinese tourists to Taiwan. The daily data used for the empirical analysis is from 1 January 2013 to 28 February 2018. McAleer’s (2015) fundamental equation in tourism finance is used to link the change rate of tourist arrivals and the change in tourist revenues. Three widely-used univariate conditional volatility models, namely GARCH(1,1), GJR(1,1) and EGARCH(1,1), are used to measure the short-run and long-run persistence of shocks, as well as symmetric, asymmetric and leverage effects. Three different Heterogeneous AutoRegressive (HAR) models, HAR(1), HAR(1,7) HAR(1,7,28), are considered as alternative mean equations for capturing a variety of long memory effects. The mean equations associated with GARCH(1,1), GJR(1,1) and EGARCH(1,1) are used to analyse the risk persistence of the change in Chinese tourists. The exponential smoothing process is used to adjust the seasonality around the trend in Chinese tourists. The empirical results show asymmetric impacts of positive and negative shocks on the volatility of the change in the number of Group-type and Medical-type tourists, while Individual-type tourists display a symmetric volatility pattern. Somewhat unusually, leverage effects are observed in EGARCH for Medical-type tourists, which shows a negative correlation between shocks in tourist numbers and the subsequent shocks to volatility. For both Group-type and Medical-type tourists, the asymmetric impacts on volatility show that negative shocks have larger effects than do positive shocks. The leverage effect in EGARCH for Medical-type tourists implies that larger shocks would decrease volatility in the change in the numbers of Medical-type tourists. These results suggest that Taiwan tourism authorities should act to prevent the negative shocks for the Group-type and Medical-type Chinese tourists to dampen the shocks that arise from having fewer Chinese tourists to Taiwan.

An Event Study of Chinese Tourists to Taiwan

The number of Chinese tourists visiting Taiwan has been closely related to the political relationship across the Taiwan Strait. The occurrence of political events and disasters or accidents have had, and will continue to have, a huge impact on the Taiwan tourism market. To date, there has been relatively little empirical research conducted on this issue. In this paper, tourists are characterized as being involved in one of three types of tourism: group tourism (group-type), individual tourism (individual-type), and medical cosmetology (medical-type). We use McAleer’s (2015) fundamental equation in tourism finance to examine the correlation that exists between the rate of change in the number of tourists and the rate of return on tourism. Second, we use the event study method to observe whether the numbers of tourists have changed abnormally before and after the occurrence of major events on both sides of the Strait. Three different types of conditional variance models, namely, GARCH (1,1), GJR (1,1) and EGARCH (1,1), are used to estimate the abnormal rate of change in the number of tourists. The empirical results concerning the major events affecting the changes in the numbers of tourists from China to Taiwan are economically significant, and confirm which types of tourists are most likely to be affected by such major events.

Mocking fakeness

AbstractPhonetic resources, like dialects and accents, are used in ethnic humour to build up a recognisable character that pokes fun at the stereotypes associated with a particular identity, sometimes with critical and political undertones. In this article, we examine the manipulation of one such resource, aspiration, used in performing and mocking one such clichéd character, called thefake Sámi.This character has a contested history in Finnish tourism and marketing practices, and is embedded in a long-standing debate about who can use emblems of Sámi identity for economic purposes. Adopting a sociophonetic language regard and folk linguistics approaches (Preston 2010;Niedzielski & Preston 2003) we explore how “fakeness” is constructed phonetically by the actors performing “Fake Sámi” in an indigenous Sámi television comedy show during a period of intense political debate in Finland over the legal definition of the category of indigenous Sámi. By analysing the use of hyperbolic aspiration of a prominent feature of Lappish Finnish dialect, the non-initial syllable /h/-sound, we show how the fakeness is performed by evoking linguistic stereotypes of a Finnish Lappish dialect and a Finnish English accent by a deliberate misuse of aspiration: aspirating when standard phonemes in speech should not be aspirated and not aspirating when phonemes should be aspirated. We argue that this kind of deliberate ambivalence and misuse of phonetic resources is a phonetic resource for reflexive postmodern identity performances.

Институциональные ловушки при финансировании индустрии гостеприимства (на примере Краснодарского края)

Objective: to determine and classify the institutional traps in financing the hospitality industry in Russia.Methods: abstract-logical, generalization and observation.Results: basing on the analysis of statistics and regional program of tourism development in Krasnodar region, the challenges and obstacles were identified to the development and improvement of tourist services quality. The research result is the identification and systematization of institutional traps in the financing of tourism, expressed in the increased public support of the sector. In particular, a significant proportion of tourist-recreational sector funding is still taken from the budget, though the specific weight of profitable health resort organizations amounted to60 % over the past three years. In the process of research, the author formulated a general concept of the institutional structure of the hospitality industry in Russia and the model of the sector financing through a system of incentives and benefits for vacationers, forming the tourist clusters, and forming a mechanism of dialogue between the authorities and representatives of tourist business.Scientific novelty: the institutional traps are defined and systematized, which are formed in the system of tourism financing; measures to over-come them are proposed.Practical significance: the proposed recommendations can be used by the entities of the hospitality industry to enhance business activities, and by authorities to implement tasks outlined in the state programs.

Is the financing of tourism by international financial institutions inclusive? A proposal for measurement

It is acknowledged that tourism can have a great potential for reducing poverty; however, the growth of tourism has stagnated in financially excluded areas because of the difficulty local tourism businesses have in accessing the financial system. International financial institutions advocate the promotion of tourism as a development tool and in the fight against financial exclusion. This paper presents a tool for measuring whether the performance of these organizations is inclusive regarding tourism financing. The results obtained from applying this tool to the analysis of projects in Latin America and the Caribbean show that the financing provided for tourism projects in this region is not inclusive.

MANAGING CONSTRAINTS IN SMES FINANCING - THE CASE OF ROMANIAN TOURISM SMES

The question of adequate financing of SMEs represents a research topic of great importance for many sectors, including tourism. In this particular sector, tourism operators are facing both the general limitations and restrictions common for all small businesses, but also specific difficulties. This paper is aiming at investigating, by using a survey-based research among main institutional lenders in Romania, the availability of the financing institutions to finance small businesses operating in tourism. The objectives of this paper are as follows: to assess the main difficulties and specific ways of creditors’ involvement in SMEs’ business financing; to find out which are the main difficulties and obstacles in tourism financing, and to what extent they can be mitigated; to reveal the most important risk factors taking into consideration by banks when financing the SMEs operating in tourism. Our findings indicate that lenders are aware about the objective factors discourageing SMEs in accessing bank loans, but also that the credit supply for businesses operating in tourism is more difficult to access and less competitive compared to other ventures operating in different sectors. This limited interest of banks in SMEs’ tourism businesses needs to be counterbalanced by other financing forms and suppliers, including public funds, European funds etc.

Sources of finance for rural tourism in the Republic of Serbia

Rural tourism in the Republic of Serbia has not been developed in line with available resources. Insufficient investments as well as undefined strategic development directions are the reason for that. The reason for that are insufficient investments as well as undefined strategic development directions. The aim of this paper is to present sources of financing for rural tourism, i.e. the rural tourism offer in the Republic of Serbia. The paper includes field research method, analyses, syntheses and statistical method. The author concludes that self-financing has been the dominant source of rural tourism financing in the Republic of Serbia so far. Currently, most of the respondents are not realizing their investments due to the insufficient accumulative ability of rural tourism and agriculture, as their related field, but also due to the lack of good external financial resources. In order to develop rural tourism in the Republic of Serbia it is necessary to define financing modalities which include innovative sources of financing for all segments of the rural tourism offer.

The Fundamental Equation in Tourism Finance

The purpose of the paper is to present the fundamental equation in tourism finance that connects tourism research to empirical finance and financial econometrics. The energy industry, which includes, oil, gas and bio-energy fuels, together with the tourism industry, are two of the most important industries in the world today in terms of employment and generating income. The primary purpose in attracting domestic and international tourists to a country, region or city is to maximize tourism expenditure. The paper will concentrate on daily tourism expenditure, regardless of whether such data might be readily available. If such data are not available, a practical method is presented to calculate the appropriate data.

Financing tourist activity

This paper researches which of the possible financing models (self-financing, loan, mutual fund, issuing securities and leasing) is the most convenient for tourism financing on the grounds of opinions and views of student population. Taking into account that future social and economic development depends on student population, that in every society intellectual endeavor (science and art) exists ever since man exists, that the overall progress of mankind is based on the great intellectual endeavor of former civilizations, as well as the fact that Western Serbia has remarkable natural and anthropogenic characteristics suitable for valorization for the purpose of tourism development, the research questions were formulated and the research was performed. The methods used were: analysis, correlation, deduction and induction. Field research has been of the primary importance and it was based on questionnaires, interviews and in-depth interview.

Fiscal implications of moving to tourism finance for parks: Ontario Provincial Parks

This article reviews the fiscal implications of moving from government funding of park management to user-funded operations in a major park system, the Provincial Parks in Ontario, Canada. In 1995/1996 after the introduction of the new funding model, the government grant to Ontario Parks was reduced to $10.6 million from $28.8 million, a reduction of 63%. Over the 15-year study-period from 1995 to 2010, the tourism-based income increased from $18.1 million to $64.9 million, an increase of 257%, while visitation increased from 8.6 million to 9.5 million in the same period, an increase of 10%. The total operating budget of Ontario Parks increased from $28.2 million to $76.5 million, an increase of 165%. The park tourism income increased through: (1) increased levels of fees charged; (2) increased diversity of pricing; and (3) broadening the income to include new features. Factors leading to the successful utilization of this user pay system for a park system are suggested.

Russia and the Russian tourist in Finnish tourism strategies–the case of the Karelian region

The Finnish travel sector needs more information about Russian tourists, because their importance has increased in Finland. In recent years, Russians have become the largest group of foreign tourists in Finnish accommodation establishments. For example, a total of 231,453 overnight stays were reported for Russian tourists in January 2011. This was almost 51 per cent of all overnight stays. Also, in 2009 the proportion of Russian tourists contributing to Finland's two-billion-euro income from international tourists was 31 per cent. The main purpose of this study is to describe how Russia and Russian tourists have reacted to tourist-related strategies in Finland generally, and especially in Karelia, which is a Finno-Russian cross-border region. The qualitative research is based on official Finnish tourism strategies and the Karelia region's official tourism strategies (n=5). According to the results, one of the advantages of Finland is its close proximity to Russia, which means easy access for Russian tourists. The main strategic goal in Finland generally and especially in the Karelia region, is to extensively exploit Russia's markets and the purchasing power of Russians. The strategic goals emphasise such things as infrastructure, services development and cooperation between the different actors in Finland and Russia. Knowing the mutual history of Finland and Russia is remarkable that Russian tourists are mentioned by name in tourism strategies.

The Dependence of Tourism SMEs on NTOs

This article reports on a study to explore the level of dependence of small and medium-sized tourism enterprises (SMEs) in Finland on the resources of the Finnish Tourist Board (FTB). A tool to measure resource dependence was developed. The overall importance of specified resources, the level of exchange of these resources acquired from the FTB, the existence of alternative sources for similar resources, and access to them were assessed. The level of dependence of Finnish tourism SMEs on the FTB was reported to be moderate. Differences were, however, identified among different types of enterprises. The size of enterprises, their proportion of foreign guests, their marketing planning, and their cooperation with others affected the level of resource dependence. The FTB resources on which tourism SMEs were most dependent were destination marketing and marketing knowledge. Results contribute to an understanding of the role of national tourism organizations.

From Familiarity Tours to Media Representations: Finland in the British Press

Tourism destinations are facing increasing challenges in the competition with numerous other places with similar attractions. Multiple promotional tools are used to create favorable destination images, familiarize international audiences with the tourist destination, and differentiate destinations from the competitors. In extensively studied tourists' image formation processes, noncommercial forms of media are almost invariably the most important travel information source, especially for unfamiliar destinations. Despite the media's importance, publicity management of destinations has been an overlooked topic in academic literature. This article aims to fill that gap by exploring the media work practices of the Finnish Tourist Board (FTB) in the British market. The itineraries of familiarity tours for British journalists are considered in the present study to express a desirable image that the FTB wishes to communicate. By comparing these itineraries with representations in the press, it was found that itineraries are influential, though the final word is that of the journalist.

Economic Impact of Tourism Finance in Nepal

This paper investigates the effects of tourism industry on gross domestic product (GDP) and finds a significant positive relationship between tourism financing and GDP. Moreover, the role of various sources of tourism financing, including government financing and the loan financing of banks and financial institutions, on economic growth has also been examined and the result supports the conventional wisdom that there is significant positive relationship between the variables. This paper uses primary data collected from the field survey during February - April 2006 and the secondary data utilizing 30 annual observations from FY 1974/75 to 2004/05. Both the level and logarithmic form data are examined using the OLS estimation method and the Cochrane-Orcutt (C-O) iterative procedure is applied considering the robustness of the model.

Applying Swedish Eco-labelling to Finnish Tourism Operation: Which Associations does it elicit amongst Customers

Eco-tourism labels convey promises and are effective when they are recognized by the markets, generate the desired associations, are trusted, used as decision tools, and direct behavior. Despite the fact that labels have been recognized as central marketing tools, few research projects have been devoted to this area. The associations that the recently launched Swedish eco-tourism label produces among Finnish tourists, one important customer segment, are analyzed in this article and compared to the value structure the launching organization wants to communicate. The respondents were of the opinion that the Swedish eco-tourism label only partially represented a high quality travel arrangement, local anchorage, protection of nature, environmentally friendly traveling, and a responsibility for nature and culture. A content analysis of the associations the eco-label generated resulted in the following four main knowledge categories, “parents playing with their children”, “poverty”, “Vikings”, and “environmentally friendly”, not all of which are relevant in eco-tourism. A large share of the respondents were also of the opinion that it is not suitable for Finnish eco-tourism firms to use the Swedish eco-tourism label without modifications, results which justify further discussion about the development of a comparative Finnish eco-tourism label.

The Impact of Cyprus–European Union Integration on the Financing of Investments in the Tourism Sector of Northern Cyprus

ABSTRACT This paper examines the issue of tourism development and financing of investments in the tourism sector of Northern Cyprus. It discusses the current model for tourism financing in Northern Cyprus and analyzes possible implications on the efficiency of this model due to membership in the European Union. As such, the process of tourism financing in Northern Cyprus, its constraints, and its opportunities are better understood.

New Year in Nämpnäs

The purpose of this article is to show that tourism always is more than amere reflective project. It also implies a sensuous and bodily involvement. The reasonis that being a tourist is a kind of participating in the local national representationswhich normally has some kind of bodily dimensions. This goes especially for youngnations like Finland where the lack of great castles, celebrated kings etc. is obvious,but where the abundance of nature to be used as national icons is the more striking.Being a tourist in Finland – as several places elsewhere – consequently means bodilyinvolvement, not only as activity but also as ‘pulse’. This is shown by means ofpersonal experiences from Finland and by the analysis of Finnish tourist books andbooklets.

Regional Development of Finnish Tourism at the End of the 1990s: Some Considerations

The purpose of this study is to find some regional trends in Finnish tourism at the end of 1990s. The motivation for choosing the period 1995–2000 is that it was a period of strong financial support to tourism development aimed at regional dispersion. Other factors that possibly have had an impact on development that has taken place are also discussed and evaluated. The data used were the number of nights spent in paid accommodation in different accommodation establishments (hotels, camping, hostels etc). The growth of nights spent was fastest in the Helsinki region and in south-western Finland; areas where the population is becoming increasingly concentrated. A remarkable trait is that the growth of tourism in these areas was principally in leisure trips, posing the question whether an urbanised society is content to take leisure tourism within an urban milieu. In any case, it appears that the decentralisation policy has been powerless in the face of these opposing forces.

The Determinants of Expenditures by Mexican Visitors to the Border Cities of Texas. Nader Asgary, Gilberto de los Santos, Vem Vincent, and Victor Davila. Tourism Eco nomics: The Business and Finance of Tourism and Recreation, vol. 3, no. 4, 1997, pp. 319-28. IP Publishing Ltd., Turpin Distribution Services Ltd., Blackhorse Road, Letchworth, Herts SG6 1HN, United Kingdom. $199 annual subscription

The Determinants of Expenditures by Mexican Visitors to the Border Cities of Texas. Nader Asgary, Gilberto de los Santos, Vem Vincent, and Victor Davila. Tourism Eco nomics: The Business and Finance of Tourism and Recreation, vol. 3, no. 4, 1997, pp. 319-28. IP Publishing Ltd., Turpin Distribution Services Ltd., Blackhorse Road, Letchworth, Herts SG6 1HN, United Kingdom. $199 annual subscription

TSAs and the WTTC/WEFA Methodology: Different Satellites or Different Planets? Stephen J. Smith and David Wilton. Tourism Economics: The Business and Finance of Tourism and Recreation, vol. 3, no. 3, 1997, pp. 249-64. IP Publishing Ltd., Turpin Distribution Services Ltd., Blackhorse Road, Letchworth, Herts SG6 1HN, United Kingdom. $199 annual subscription

TSAs and the WTTC/WEFA Methodology: Different Satellites or Different Planets? Stephen J. Smith and David Wilton. Tourism Economics: The Business and Finance of Tourism and Recreation, vol. 3, no. 3, 1997, pp. 249-64. IP Publishing Ltd., Turpin Distribution Services Ltd., Blackhorse Road, Letchworth, Herts SG6 1HN, United Kingdom. $199 annual subscription