Tourist Spending Research Articles

EMPIRICAL ESTIMATION OF THE POTENTIAL ECONOMIC IMPACT OF TOURISM PROMOTION POLICY IN ALGERIA

Objective: The objective of this paper is to empirically assess the economic impact of tourism promotion policies in Algeria. By utilizing an economic model based on the 2021 Social Accounting Matrix (SAM) multipliers, the study aims to quantify the direct, indirect, and induced effects of increased tourism demand on various sectors of the national economy. Specifically, the research seeks to evaluate how tourism expenditure influences production, sectoral output, and income distribution, while also identifying which sectors and economic agents benefit the most from tourism growth. Theoretical Framework: Study is based on the Social Accounting Matrix (SAM) approach, which examines the interconnections between sectors of the economy and tracks the flow of income and expenditure. It incorporates input-output theory to measure the direct, indirect, and induced effects of increased tourism demand. The concept of economic multipliers is central, highlighting how tourism spending influences various sectors. Additionally, the framework assesses the distribution of benefits across different economic agents, focusing on how tourism impacts production, sectoral output, and income distribution in Algeria. Method: This study uses 2021 Social Accounting Matrix (SAM) data to analyze tourism demand in Algeria. It develops an economic model, simulates scenarios, and assesses the economic gains and distribution of benefits, providing a comprehensive evaluation. Results and Discussion: The SAM-based economic model shows that Algeria's tourism demand boosts production and output across sectors, particularly agriculture, hospitality, agri-food, construction, transportation, and energy. However, the benefits are not evenly distributed, potentially leading to income inequality. Policy interventions should focus on equitable income distribution and supporting key industries. Research Implications: Tourism can drive Algeria's economic diversification, reducing dependence on traditional sectors. Inclusive tourism policies are needed to ensure equitable benefits for wage earners and lower-income groups. Future research should focus on sector investment and employment effects. Originality/Value: This study analyzes the economic impacts of tourism promotion policies in Algeria, focusing on the 2021 Social Accounting Matrix. It provides insights into the distribution of benefits and emphasizes the need for inclusive policies. The findings provide actionable insights for policy development.

Modelling the heterogeneity of tourist spending in a mature destination: An approach through infinite mixture

Identifying tourists' preferences is essential for stakeholders to provide better products and services. Among the tools to classify such choices, expenditure segmentation is valuable for separating tourist groups with shared interests. The underlying idea of the (infinite) mixture model is that tourists spend on a specific activity depending on their preferences. However, the propensity to consume may be based on or influenced by the group to which the tourist belongs. Thus, such a tendency could increase depending on homogeneity or heterogeneity. This paper uses a compound distribution mixture to model the expenditure heterogeneity. The resulting mixture model derives from a multivariate Pareto (Lomax) distribution that is easy to implement and includes zero value in its support since it is empirically proven that a tourist's expenditure on some activity can be zero. Results show that once the spending on transport has been carried out, tourists prefer to spend more on food than other activities. Conditioned to the expense carried out on food, the mean expenditure on leisure activities is more significant than on transport. Finally, tourists would prefer to spend more on food than on transportation once they decide to spend on other activities.

Exploring the Relationship between Tourist Expenditures and Cultural Heritage Site Visits

The connection between cultural heritage site visits and expenditures usually shows that improved visits to cultural sites lead to higher tourist spending, as these sites regularly appeal to extra prosperous or culturally engaged traffic. Additionally, properly preserved and promoted cultural history sites can enhance local economies by way of illustrating more travelers who spend on diverse services like accommodation, food, and entry fees. Therefore, investment in cultural heritage maintenance and merchandising can drastically enhance tourism revenues.In this paper, it used data from 138 visitors to analyze the connection between their tourist expenditures and visits to cultural heritage sites. 40 questions were distributed to the visitors to collect their experience and data, including age, gender, and income level. Then evaluate the factors and their willingness to visit using the Pearson correlation, descriptive analysis, and ANOVA test. Additionally, we assessed the main reasons for unwillingness and detailed total expenditures. As a result, we found that visitors had a high willingness to spend more on expenditures.

Factors determining the expenditure of Lao tourist on Luang Prabang tourism during the epidemic situation of COVID-19

The purpose of this research was to study the factors that determine the expenditure of Lao tourist on Luang Prabang tourism during the epidemic situation of COVID-19. It was developed on a model based on Engel's law and applied Multiple Classification Analysis (MCA) to analyze the data to forecast tourist spending based on their personal attributes. The results showed that certain personal characteristics of tourists influenced what Lao tourists spent on tourism in Luang Prabang at a significant level of 0.01, with the highest spending on Luang Prabang tourism. This was found to be a tourist who earns more than of 601 USD per month or more, are male, aged 40 years and over, married, and from Vientiane Capital. They have an education level of a Bachelor's degree or higher, have a private business career, and traveling to Luang Prabang for the 5th time or more and will spend about than 150.49 USD per person per day on Luang Prabang tourism. Therefore, tourists with such characteristics are a marketing target that concerned parties must prioritize in marketing.

Machine Learning and Artificial Intelligence for a Sustainable Tourism: A Case Study on Saudi Arabia

This work conducts a rigorous examination of the economic influence of tourism in Saudi Arabia, with a particular focus on predicting tourist spending patterns and classifying spending behaviors during the COVID-19 pandemic period and its implications for sustainable development. Utilizing authentic datasets obtained from the Saudi Tourism Authority for the years 2015 to 2021, the research employs a variety of machine learning (ML) algorithms, including Decision Trees, Random Forests, K-Neighbors Classifiers, Gaussian Naive Bayes, and Support Vector Classifiers, all meticulously fine-tuned to optimize model performance. Additionally, the ARIMA model is expertly adjusted to forecast the economic landscape of tourism from 2022 to 2030, providing a robust predictive framework for future trends. The research framework is comprehensive, encompassing diligent data collection and purification, exploratory data analysis (EDA), and extensive calibration of ML algorithms through hyperparameter tuning. This thorough process tailors the predictive models to the unique dynamics of Saudi Arabia’s tourism industry, resulting in robust forecasts and insights. The findings reveal the growth trajectory of the tourism sector, highlighted by nearly 965,073 thousand tourist visits and 7,335,538 thousand overnights, with an aggregate tourist expenditure of SAR 2,246,491 million. These figures, coupled with an average expenditure of SAR 89,443 per trip and SAR 9198 per night, form a solid statistical basis for the employed predictive models. Furthermore, this research expands on how ML and AI innovations contribute to sustainable tourism practices, addressing key aspects such as resource management, economic resilience, and environmental stewardship. By integrating predictive analytics and AI-driven operational efficiencies, the study provides strategic insights for future planning and decision-making, aiming to support stakeholders in developing resilient and sustainable strategies for the tourism sector. This approach not only enhances the capacity for navigating economic complexities in a post-pandemic context, but also reinforces Saudi Arabia’s position as a premier tourism destination, with a strong emphasis on sustainability leading into 2030 and beyond.

The recreational and economic value of Florida beaches

Florida is the world’s top travel destination and. if it were its own country, it would have more tourist visits than any other country. Its sandy beaches extend a shoreline length almost as great as the combined lengths of sandy beaches in California, Texas, and North Carolina. Florida’s beaches are easily America’s recreational playground. Every year, Florida beaches attract approximately 70% more day visits than combined attendance at national parks, college and professional sports, amusement parks, cruises, and NASCAR events. Beach tourism plays a huge role in Florida’s economy. Manufacturing and residential construction are major industries in Florida, but their revenues are each a fraction of beach-oriented tourist spending. Florida’s farmland, ranches, and forests cover 75% of its land area, but beach-oriented tourist spending is more than 10 times the total receipts of all Florida agriculture and forestry. Beach-oriented tourists generate $23.3 billion in tax revenues annually. These tax revenues are more than double the combined salaries of Florida K-12 public school teachers, law enforcement officers, and instructors at colleges and universities. Some Florida beaches have sand deficits because dams on rivers have blocked sand that normally would flow to the coast, and navigation projects have diverted sand out of the littoral system to ebb and flood shoals. Beach nourishment has then been needed to restore and maintain the beaches. Beaches widened by nourishment have not only been a magnet for tourists, but have also protected bil- lions of dollars of shore infrastructure from hurricanes. Beach nourishment has been a bargain, with beach-oriented tourists in Florida generating six times more tax revenues each year than have been spent on Florida beach nourishment during the 80 years from 1944-2023 (in 2022 dollars to account for inflation). Most Florida beach nourishment has been placed in the past 50 years, and beach-oriented tourists have generated $310 dollars in tax revenues and $1070 in Gross Domestic Product (GDP) annually for every $1 spent on beach nourishment. Miami Beach is a good example of the economic benefits of beach nourishment. It had almost no beach in the mid-1970s because of erosion, causing tourism to drop rapidly and itself to become a “seedy backwater of debt-ridden hotels.” Beach nourishment starting in 1978 caused a boom in tourism, and today Miami Beach has the most valuable property in Florida — worth more than the value of all Florida cropland. Miami Beach has had a return of $550 in tourist-generated taxes and $3900 in GDP for every $1 spent on beach nourishment.

Comparison of municipalities within whose borders specially protected natural areas are located

Purpose: is to present and to substantiate methodological approaches to comparing the municipalities by income, taking into account the specially protected natural areas (SPNA) located on them.Methods: the clustering method (k-means) is used to differentiate municipalities within groups built according to the SPNAs network scale. The method of full-time formalized interviews is used to compare the tourists` expenses at the SPNA of urban districts. The comparative analysis method is used to compare the economic parameters of municipalities involved in the overall ecotourism project.Results: the authors proposed three methodological approaches to comparing municipalities based on the income of local residents and the municipality as a whole. Within the first approach, characteristics of groups of municipalities formed according to the share of SPNA`s area in the area of the municipality were obtained. The group with the weakest position in terms of budget self-sufficiency is «10.1%– 15.0%», in terms of population changes – «15.1%–20.0%», in terms of residents` income level – «20.1%–30.0%». The second approach made it possible to estimate the income of urban districts from SPNA visits. Under the level of SPNA attendance and the number of tourists, the annual volume of tourist spending on SPNA ranges from 0.1 billion up to 0.5 billion rubles. The comparison of municipalities connected by a single project on SPNA revealed the data on the small businesses development and territory`s tax revenues, as well as the features in the local residents` income level changes.Conclusions and Relevance: the obtained characteristics of groups of municipalities indicate insufficient use of the potential of SPNA to generate income for the local residents (group «20.1%–30.0%») and income for the territory (group «10.1%–15.0%»). Urban districts` SPNA tourist visits can provide a significant revenue base for the municipality, but its volume is not always determined by the SPNA network scale. The development of eco-tourism in rural municipalities makes it possible to reduce the crisis periods` impact on the local budget filling and residents` income.

The paradox of global capitalism in crisis and global popular free mobilisation: The merger of the tourist and the temporary resident

Instability is inherent in global capitalism, impacting all countries, particularly those directly reliant on this economic framework. The USA shapes tourism metrics in dependent nations and influences inbound tourism spending. Using logarithmic models and power tests, the study delineated four dynamic fields (Cn) supporting the thesis of the fusion of tourism and temporary residency. This study demonstrates that tourism and migration correlate with political, economic, and social instability, as evidenced by high statistical correlations. Variance increases during instability, leading to more residency petitions per tourist entry. This pattern is repeated during three major crises: the 2008–2009 financial crisis, the 2011–2013 conflicts in the Middle East and Africa, and the 2016–2017 regional political turmoil and Venezuelan migration. Economic classification tests confirm the association between instability, armed conflict, and heightened tourism and residency tendencies. Tourism income rises steadily, and residency averages increase, especially during periods of regional instability. The study highlights the tight link between tourism and migration with political, economic, and social instability. The statistical analysis reveals significant correlations, showing higher residency pressure during unstable periods. The applied tests confirm that countries in turmoil exhibit heightened tourism and migration tendencies.

Exploring Critical Success Factors that Influence Tourism Success: a Qualitative Study in the Context of Diverse Tourism Destinations

Tourism is an important industry that has a huge impact on the economy. This economic impact comes from the spending of tourists who visit a tourism destination. Therefore, tourism destinations must make the necessary arrangements to effectively receive and maximize this economic opportunity. An important step in understanding and effectively managing the tourism industry is to identify the critical aspects that contribute to its success. Examining critical success factors in various tourism destinations, taking into account geographic, cultural, and economic variations, is essential to understanding the intricacies of the tourism sector as a whole. This research utilizes a qualitative research methodology, namely content analysis, which includes conducting a literature review and using triangulation. The purpose of this study was to identify the key factors that influence the success of the tourism industry in the context of diverse tourism destinations. The research findings show that various key factors significantly influence the success of various tourism destinations. These factors are uniqueness of location, attractiveness of tourist attractions, ease of access, government support, local community involvement, availability of facilities and infrastructure, quality of human resources, effectiveness of marketing and promotion efforts, and tourist motivation. Within the realm of green tourism, these findings underscore the imperative of incorporating sustainable practices into each of these elements. This includes advocating for environmentally friendly modes of transportation, endorsing local environmentally conscious enterprises, and ensuring that tourism development amplifies rather than exploits natural and cultural resources. This integration will not only adhere to the ideals of sustainable tourism but also have the ability to boost the economic advantages of the tourism industry by attracting environmentally aware travelers.

Mortgage debt and domestic and outbound travel expenditures: International evidence

We explore the relationship between the mortgage debt of households and their spending on domestic and outbound tourism and travel. We estimate a dynamic panel data model for a sample of 27 countries for 2010-2021, and find evidence for a negative relationship. Hence, we show that in countries where the mortgage per capita is high, residents allocate fewer expenditures on domestic and outbound tourism. We also find that the reduction in outbound tourism spending is more pronounced than the decrease in domestic tourism spending. Our findings can benefit policymakers and firms in the tourism industry by providing the knowledge necessary for creating successful promotional strategies.

Sustainable tourism: Pathways to environmental preservation, economic growth, and social equity

This comprehensive study examines sustainable tourisms multifaceted impacts on environmental conservation, economic development, and social equity. Through a series of analytical lenses, we assess how the tourism sectors carbon footprint can be significantly reduced by adopting low-carbon transportation and energy-efficient accommodations, leading to a 40% reduction in CO2 emissions. We explore biodiversity conservation efforts enhanced by sustainable tourism practices, resulting in a 25% improvement in biodiversity indices. Water resource management strategies highlight the importance of sustainable practices in reducing water usage by up to 30%. Economically, sustainable tourism acts as a catalyst for increasing tourist spending, job creation, and ensuring long-term economic resilience, with data indicating a 20% increase in per capita tourist expenditure in destinations with sustainable certifications. Socially, the paper delves into community participation, cultural preservation, and access inclusivity, showcasing how sustainable tourism fosters community satisfaction, cultural enrichment, and equitable benefits distribution. This paper underscores sustainable tourisms role as a critical lever for achieving environmental sustainability, economic vitality, and social justice.

Towards Efforts to Equalize Income in Africa: The Role of Tourism Development

ABSTRACT A vast literature has investigated the nexus between tourism and income inequality in developing and developed countries. Unfortunately, the literature on the impact of tourism on income inequality in Africa is sparse. Hence, this study examines the influence of tourism on income inequality in 30 African countries over the period 1996–2020. In addition to international tourism arrivals and international tourism receipts which have been widely used by previous studies, this study uses a plethora of tourism indicators, namely business tourism spending, leisure tourism spending, internal travel and tourism consumption, domestic tourism spending, and visitor exports. Moreover, unlike previous studies that have extensively used the Gini index with its inadequacy as a measurement of income inequality; this study uses the Atkinson index and Palma ratio to capture extreme points of the inequality distribution. The empirical evidence is based on the panel-corrected standard error (PCSE) estimation technique. The results reveal that tourism contributes to the equalization of income in Africa, contingent on the type of tourism. Policy implications are discussed.

Asymmetric Effects of Tourism on the Geography of Economic Activities

This study investigates the asymmetric effects of international and domestic tourism on economic complexity worldwide. Despite the significant contributions of international and domestic tourism to a country’s economic activities, their potential impacts on economic complexity remain underexplored in the literature. Using the Dynamic Fixed Effects Autoregressive Distributed Lag (DFE ARDL) model, this research estimates the short- and long-term effects of domestic and international tourism on economic complexity for 123 economies from 1995 to 2018. The empirical analysis reveals that domestic tourism spending has an insignificant negative impact on economic complexity in the short term. However, in the long run, it exerts a significant positive effect, suggesting that domestic tourism could be a powerful driver of the long-term geography of economic activities. In contrast, international tourism contributes to economic complexity in the short term, but its long-term impact is less significant. These findings affirm the instrumental role of tourism development in enhancing economic complexity and underscore the importance of a balanced approach to tourism development, considering its short‐ and long‐term effects on economic complexity. The study contributes to the literature by providing the first evidence of a connection between the tourism industry and economic complexity from a global perspective.

An analysis of the impact and mechanism of new digital infrastructures on travel consumption behaviours of middle-aged and elderly households in China

ABSTRACT The significant integration of the ‘internet’ with ‘tourism’ has changed visitor travel motivations and customer behaviour. New digital infrastructure currently provides substantial technical support for deep integration between ‘the internet’ and ‘tourism’. In this work, the HLM model is used to match and merge household-level microdata with regional-level data. The goal is to identify the mechanism underlying the impact of China’s new digital infrastructure on the travel consumption habits of Chinese households. Our analysis shows that: (1) Middle-aged and older households will be much more likely to travel, and their travel expenses will also be more intense, as the intensity of new digital infrastructure increases. (2) The development in the degree of new digital Infrastructure will effect the tourism spending behaviour of middle-aged and senior people by boosting their Internet usage.

THE SIGNIFICANCE OF TOURIST CONSUMPTION FROM THE PERSPECTIVE OF ORGANIZING MUSIC FESTIVALS

This paper explores the importance of tourist expenditure in the context of organizing music festivals. Music festivals have become crucial elements of cultural and tourist experiences worldwide, attracting a large number of visitors from different parts of the globe. This paper analyzes the impact of tourist spending on the economy and local communities, with a specific focus on the organization of music events. A particular emphasis is placed on the organizational aspects of music events, from the meticulous planning and execution to the intricate interdependence with economic variables. By zeroing in on the organizational intricacies, we aim to uncover the holistic impact of music festivals on both the local and global stage. This exploration extends beyond the mere numerical evaluation of economic contributions; it encompasses the indirect effects on local businesses, the socio-cultural dynamics of communities, and the long-term sustainability of these cultural celebrations. In essence, this topic aspires to provide a comprehensive understanding of how the synergy between tourist expenditure and the organization of music festivals shapes not only the economic landscape but also the intricate tapestry of local communities. It is important to know the transformative potential of music festivals, offering insights that extend beyond the realm of entertainment to inform strategic decisions for organizers, policy makers and stakeholders. The economic impact of music festivals goes beyond the revenue generated by ticket sales. Tourist expenditure injects funds directly into the local economy, benefiting various sectors. Accommodation establishments thrive during festival periods, local vendors experience heightened sales, and transportation services witness increased demand. Additionally, festivals may stimulate the creation of temporary employment opportunities, fostering a short-term economic boost. However, to maximize the positive impact, organizers and local authorities must strategically plan for the influx of visitors.

The Competitiveness of Tourist Destinations: A Review of the Scientific Literature

The competitiveness of tourist destinations worldwide is of vital importance for any destination that wishes to develop and improve its positioning in the global, national and/or regional market, because the actors of tourist destinations are aware that the greater the number of tourists and tourist spending in the destination, the greater the economic development that directly and indirectly affects the different actors, the ultimate objective being to improve the quality of life of the people in the community. Therefore, this study focuses on carrying out a review of the scientific literature on the competitiveness of tourist destinations, with the objective of identifying the dimensions, factors and indicators used in the different models of destination competitiveness, which can be applied to a tourist destination at the present time and have greater clarity when evaluating it. In this sense, a bibliographic review of 40 scientific articles from Scopus and Science Direct published between 2000 and 2021 was carried out, of which 29 articles were selected based on the criteria of the proposed models of competitiveness of tourist destinations, factors and indicators used. The results of the study contemplate a theoretical framework of competitiveness in itself, the competitiveness of tourist destinations and the models of competitiveness of tourist destinations, making an analysis of the differences and similarities between them; likewise, indicators used to analyze the destination are presented, and finally, studies that have used these theories and models in different countries are presented. Finally, it is concluded that the theories of the competitiveness of tourist destinations that have most influenced these models have been those proposed by Ritchie and Crouch, and Dwyer and Kim, since they have between 7 and 9 factors in common and 57 indicators.

Conditional Subsidies for Domestic Tourists: The Case of PreViaje in Argentina

Summary This case study explores PreViaje (in English, PreTrip), an unprecedented tourism demand program launched in 2020 in Argentina as a response to the COVID-19 outbreak. PreViaje is a public policy at the national level that subsidises the selling of tourism services to residents travelling within the country. Its sui generis nature primarily lies in two characteristics: (i) the selling of tourism services takes place before travelling and (ii) the government subsidises (up to) half of the tourist spending. The program features conditionalities that determine eligibility for the subsidy. To study the emergence and evolution of the program, we use the three policy strategies suggested by the UNWTO to deal with the negative effects of COVID-19: (i) managing the crisis and mitigating the impact, (ii) providing stimulus and accelerating recovery and (iii) preparing for tomorrow. Information © The Authors 2024

Domestic Tourist's Motivation Consume Local Food: A Case Study in Bangka Belitung

Consuming local food has the power to boost a destination's economy and preserve its unique culture. At present, there is a disparity between the rise in the quantity of tourists visiting Bangka Belitung and the rise in their expenditure on consumption. The purpose of this study is to pinpoint the driving forces behind tourism spending. Purposive sampling was utilized in the study to gather data from visitors who had eaten local cuisine in Bangka Belitung. Samples were collected by means of the snowball method. Social media was used to distribute the questionnaires. There are 339 samples in all. Thirteen motivations were identified based on visitor experiences, as well as literature studies. These will be tested using factor analysis processed with SPSS. Two motivational groups were identified from the testing: social motivation and motivation to appreciate local cuisine. Authenticity of the food, tradition, culture, and social components are among the reasons people appreciate consuming local food. Emotions and social standing are components of social motivation. Part of the equation is sensory motivation. In order to effectively promote local food, sensory elements must be highlighted. The study concludes that managers in the travel business ought to understand more about the reasons behind tourists' eating habits. It will therefore serve tourists more effectively, resulting in their satisfaction and loyalty to the local food, which will strengthen the local economy. It is suggested that interaction motivation be included in future studies.

Impact of Domestic Tourist Spending on the Economy of West Java Province, Indonesia

The development of tourism in West Java in recent years has shown an increasing trend in domestic tourists until 2021. The increased number of domestic tourists has had an impact on West Java's economic activity. However, the tourism sector itself is not defined as a distinct sector in economic statistics, and as a result, the economic impact from tourism contributions is not quite noticeable, especially in West Java Province. This study aims to highlight the impact of tourism on the economy of West Java by examining domestic tourist spending in 2021 and its effect on the economy. The study estimates the multiplier effect of domestic tourists' spending on production, income, gross value added, and employment, to determine the economic impact of tourism. The results of this study indicate that tourism has a significant impact and plays a significant role in the West Java economy, contributing 9.28% to GRDP and 12.39% of the total working population in West Java in 2021.

Tourism as an instrument of economic growth: Empirical exploration at the regional level in Spain

AbstractThis work analyzes the dynamic relationship existing between tourism and economic growth through the use of different indicators to measure tourism activity, according to regional data from Spain taken from 2004 to 2021 that are linked to the NUTS‐2 level of the nomenclature of the territorial units for statistics of the European Union. This is an innovative approach as compared to the majority of existing works analyzing this relationship at a country level. However, it is widely recognized that the contribution of tourism to growth takes place in the form of regional development. By introducing the notion of distance between the dynamic trajectories of the different regions, an analysis of hierarchical clusters was performed, enabling the identification of regional groups having similar behavior in terms of tourism performance and economic growth. In this work, it has been established that the impact of a region's total (national and international) tourism, in terms of both number of tourists and tourism expenditure, is the most appropriate indicator for tourism analysis at a regional level. Furthermore, it identifies the characteristics that are found in tourist regions having a higher level of economic growth, from a tourism perspective: high tourist spending, hotel accommodation, motivation for leisure, longer average stay, the region's orientation towards the tourism industry, and, mainly, the impact of international tourism. Therefore, those responsible for tourism destination management should implement policies that favor the arrival of tourist flows with these characteristics if they intend to promote tourism as an instrument for greater economic growth.