On the economic rationality of fluctuations in tourism frequentation at nature-based destination: the case of Corsica seaside hotels

The aim of this paper is to answer a simple question: Are fluctuations, and especially temporary slow-downs or decline, in frequentation always harmful for a tourism destination? I propose a simple theoretical model for a nature-based destination, in which the willingness to pay (WTP) of a tourist for the destination depends on the environmental quality of the destination. I hypothesize that, at some points in time, there exists a rational economic incentive to experience a decrease in frequentation for a while in order to let the stock of natural assets regenerates since the fall in environmental quality is associated with a lower willingness to pay for the destination. Then I use a sample of 80 seaside hotels of Corsica to show that the WTP of tourists for a night-stay positively depends on environmental quality. Results indicate that a deterioration of the environmental quality of the destination would reduce the willingness to pay for a nigh-stay in Corsica of more than 25%. It tends to confirm my initial hypothesis since if the environmental quality of Corsica falls rational hotel owner should ask for a limited and temporary slow-down in frequentation so that environmental quality and the WTP reach again a higher and more profitable level

On the economic rationality of fluctuations in tourism frequentation at nature-based destination

The aim of this paper is to answer a simple question: Are fluctuations, and especially temporary decline, in frequentation always harmful for the pro�t of a tourism destination? I propose a simple model for a nature-based destination, in which the willingness to pay of a tourist for the destination depends on the stock of natural assets, and I show using simulations that there exists a rational economic incentive to experience a decrease in frequentation for a while in order to let the stock of natural assets regenerates. This is an idea already emphasized by Greiner et al. (2001) and Kort et al.(2002). I show that anyway the optimal behavior of a pro�fit-maximizing representative tourism �firm would generally lead to a monotonic frequentation path. This apparent contradiction is due to the fact that the level of frequentation is not, in the real world, set at its optimal level. Yet it could be good news if at some point, when the stock of natural assets is low, frequentation declines for a while

On the economic rationality of fluctuations in tourism frequentation at nature-based destination: the case of Corsica seaside hotels

The aim of this paper is to answer a simple question: Are fluctuations, and especially temporary slow-downs or decline, in frequentation always harmful for a tourism destination? I propose a simple theoretical model for a nature-based destination, in which the willingness to pay (WTP) of a tourist for the destination depends on the environmental quality of the destination. I hypothesize that, at some points in time, there exists a rational economic incentive to experience a decrease in frequentation for a while in order to let the stock of natural assets regenerates since the fall in environmental quality is associated with a lower willingness to pay for the destination. Then I use a sample of 80 seaside hotels of Corsica to show that the WTP of tourists for a night-stay positively depends on environmental quality. Results indicate that a deterioration of the environmental quality of the destination would reduce the willingness to pay for a nigh-stay in Corsica of more than 25%. It tends to confirm my initial hypothesis since if the environmental quality of Corsica falls rational hotel owner should ask for a limited and temporary slow-down in frequentation so that environmental quality and the WTP reach again a higher and more profitable level

Optimal periodic development of a pollution generating tourism industry

Greiner A, Feichtinger G, Haunschmied JL, Kort PM, Hartl RF. Optimal periodic development of a pollution generating tourism industry. EUROPEAN JOURNAL OF OPERATIONAL RESEARCH. 2001;134(3):582-591.This paper studies how environmental pollution affects optimal development of the tourism industry over time. The planner has the possibility to stimulate tourism by carrying out service expenditures, like organizing events, advertising, attracting seasonal workers, etc. The positive effect of these expenditures on tourism is negatively influenced by the presence of pollution. since the latter element distracts tourists from visiting a particular region. We show that for a particular scenario service expenditures, tourism as well as pollution exhibit a cyclical development over time. This policy implies that when pollution is high, tourism activities are reduced in order to give the environment a chance to recover. Environmentalists advocate this behavior, but in this paper, we show that this policy is also optimal from a profit maximizing point of view. (C) 2001 Elsevier Science B.V. All rights reserved