This paper focus on ‘hidden’ tourism phenomenon, that is the tourist demand that in many destinations eludes the official survey system. Estimation of hidden tourism requires information drawn from tourism demand and supply, using different indicators. The critical points are: the availability and validity of data, the data collection time and the application of the analysis models to different non-homogeneous areas. Economic value of the phenomenon relies on an estimate of consumption.hidden tourism, carrying capacity, tourism consumption, indicators, estimation

Vincenzo ASERO

English

Research Papers in Economics

The Annals of “Dunarea de Jos” University of Galati  
Fascicle I – 2009. Economics and Applied Informatics. Years XV - ISSN 1584-0409 
 
 
  29
 
Tourism Development and the ‘Hidden’ 
Phenomenon 
 
Vincenzo ASERO 
vasero@unict.it 
University of Catania 
 
Abstract. This paper focus on ‘hidden’ tourism phenomenon, that is the tourist 
demand that in many destinations eludes the official survey system. Estimation 
of hidden tourism requires information drawn from tourism demand and supply, 
using different indicators. The critical points are: the availability and validity of 
data, the data collection time and the application of the analysis models to 
different non-homogeneous areas. Economic value of the phenomenon relies on 
an estimate of consumption.  
 
Keywords: hidden tourism, carrying capacity, tourism consumption, indicators, 
estimation 
 
Jel Code: L8, L83 
 
1.  Introduction  
 
One of the main topics concerning tourism policy is what regards the connection between local 
development and tourist economic impacts. By considering that those impacts depend on the 
tourist demand, studying the demand is the basis of the tourism statistic-economic analysis, in 
order to identify different market segments and plan action of destination management. 
Nevertheless, in many cases official data of tourist demand do not allow to identify really the 
tourist dimension. In fact in calculating the presence of large number of the tourists should be 
consider a statistical estimations of what should be called ‘hidden’ tourism. Hidden tourism is 
the tourist demand that in many tourism destinations eludes the official survey system. 
Although the level of this phenomenon varies from a place to another, it is generally 
acknowledged that the lack of exhaustive information concerning tourist flows can distort the 
tourism accounts of a destination and seriously affect its tourism development policy. This 
paper focus on hidden tourism phenomenon and the need of drawing economic-statistical 
indicators for its estimations.   
 
2.  Market Demand and Tourism Policy  
 
The heterogeneous groups of individuals that make up the tourist demand vary from one to 
another. The socio-economical position (age, income, nationality/region of origin, occupation, 
composition of the family nucleus/group) and the other variables relating to foreign travel 
(duration, motivation, means of transport, typology of lodging, expenditure) are considered the 
basics for economic statistical analysis for identify all possible tourist market segments. 
Identification of one the more segments that involves the tourist/consumers demand to a 
particular territory is strategic for setting up the efficient organisation and management of a 
tourist destination. Segmentation is a strategic way to approach the market, assuming that the 
consumers behaviour will help to identify homogeneous groups. In this way all available 
resources allocated, accomplishing the market’s objectives (Hsieh, et al., 1992).  
 
The end result of such an analysis reveals at clear indication of the competitiveness of the 
territory, the choice factors that kind adopt for marketing the product, all the necessary The Annals of “Dunarea de Jos” University of Galati  
Fascicle I – 2009. Economics and Applied Informatics. Years XV - ISSN 1584-0409 
 
 
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information for quality destination management activities (Della Corte, 1999). An overall 
study of the tourist market is imperative for setting up in all its different phases’ process 
covering all structural and organisational elements of a supply and instruction for the correct 
management of the tourist flows. In other words, a planning project for tourist development of 
a territory (Scoatariu, 1994).  
 
Should the demand constitute an improve factor of a competitive of a destination other factors 
must also be taken into account (variable macro-economies, transport, attractions, tourism 
supply policy, etc.), for possible alternative marketing condition (Dolnicar, Weber, 1999). The 
market supply promotion and various economic enterprises are an instrumental and valid 
support to all those persons relating systematically to the territory to increase the tourist 
potential and competitiveness (stakeholders, large interest holders, policy makers, governments 
and administrations) (Ancarani, 1999). Good results brought about through strategic marketing 
activities, including territorial marketing and co-marketing, will become a shared opinion; it is 
not only an instrument of promotion for the economic growth of a territory but also a means of 
sustainable and endogenous development. 
 
This approach requires the constant attention of the market and its evolution, an increasing 
awareness on the part by both the public and private market enterprises for future decision 
making, such as the WTO Business Council opinion on this matter emphasising the fact that 
cooperation between the private and public sectors is crucial on an international, national and 
local level to create tourist competitiveness. Cooperation is most effective in areas leading to 
the upgrading of the tourist district capacity to attract tourists to the destination, efficient 
marketing and management of the entire tourist system (WTOBC, 2000). The analysis of the 
demand is a key element to discover the tourist consumer behaviour towards a specific 
destination while all information gathered offers support in terms of policy and governance to 
the local tourism industry. However, it appears evident the difficulty in calculating the 
presence of large numbers of tourists, the possible solution lies in considering both official data 
and statistical estimations. 
 
3.  Carrying Capacity and Hidden Tourism 
 
Surveying the carrying capacity of a territory from the physical, social and cultural aspect as 
well as ganging the maximum endurance levels is important for the planning and management 
of tourist traffic. It is a well known fact that reaching the limit could cause severe damage to 
the territory and environment and social conflict transforming tourism from an economic 
activity generating income through direct or indirect consumption of resources into a 
compromised activity caused by uncontrolled mass tourism damaging the territory. Tourism 
theory has recognized the key importance of environmental quality for ensuring the 
competitiveness of most types of tourist destinations (Inskeep, 1991; Mihalic, 2000). The aim 
of leisure management is to make positive provision for recreation, while protecting and 
enhancing the resource (Glyptis, 1991). In this sense, most destinations recognize that 
competitiveness is illusory without sustainability (Ritchie and Crouch, 2000). 
 
It is important to conceptualize carrying capacity, in order to facilitate tourism planning 
(Saveriades, 2000). The World Tourism Organization defines it as ’the level of visitors use an 
area can accommodate’ (Buckley, 1999), while Mathienson and Wall (1982) consider carrying 
capacity as the maximum number of people who can use a place without an unacceptable 
alteration in the physical environment and an unacceptable decline in the quality of the 
recreational experience. However, at a theoretical level, there are many difficulties in defining 
and measuring it, but almost all definitions incorporate two central aspects: the biophysical 
component and the behavioural component. The territories resources are the tourist trades main 
attraction therefore tourist development also depends on an even tourist traffic flow whose 
quantitative growth should be limited to avoid an excessive exploitation of the territory. This 
will prejudice the market demand and cause damage to the environment and resources making 
the territory as an area not worth visiting. If so it is, the growth of the touristic phenomenon The Annals of “Dunarea de Jos” University of Galati  
Fascicle I – 2009. Economics and Applied Informatics. Years XV - ISSN 1584-0409 
 
 
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more than representing ‘a passport for the development’, could be understood as really 
‘misfortune’ (de Kadt, 1979). 
 
Significant at this point is the of hidden tourism of the territory. The physical presence of other 
persons besides the residents and registered tourists are also consumer/tourists. They are a 
good source of information for the decision makers on matters concerning the organisation of 
activities connected with tourism. The correct meaning of hidden tourism can be identified if 
one considers the economic characteristics of this particular market. 
 
4.  The Demand and Supply Indicators 
 
Estimation of hidden tourism must take into consideration all information concerning both 
tourist demand and supply. Information deductible from indicators put together for a detailed 
analysis of the phenomenon. 
 
Considering the kind of information, estimation can be based on direct, indirect and mixed 
methods. Direct methods make use information usually collected from statistical surveys or 
from administrative sources. Indirect methods draw on "tracks" left by tourists. Usually, 
tourists go from a place to another and leave different tracks of their presence in consuming 
and/or visiting tourist places. Therefore, there is a difference between the tourism official data, 
that are gathered in the official tourism accommodation facilities, and all the tourist really 
arrived, that also include both people visiting a tourist site, but usually stay in another place, 
and non-observed tourists. Then, in case of lack of official data, the tracks above mentioned 
could be use to identify the tourist presence in an area.  
 
Therefore, an estimation of hidden phenomenon can be made through a calculation of the 
consumption generated on the territory (Gambassi, 1997). In fact, this type of tourism 
determines an increase in consumption (electricity, water, refuse matter and cash withdrawal). 
The result gives an idea of the hidden tourism considered to be the surplus demand as opposed 
to the officially declared demand and of course the local residents. On the other hand, tourists 
do not take into account this phenomenon because they have no interest in self manifestation 
until they perceive and except as satisfactory both the level of prices and the quality of 
services. Moreover, hidden tourism may stimulate the tourist trade to better qualify the supply 
but not necessarily making it emerge. It is therefore evident that the economic impact of 
hidden tourism is relies on the consumption level and subsequently the increase in income, 
revenues, the use of the territory indicated also by non residents’ indication. 
 
As regards tourist supply, it can be calculated through the number of accommodation and 
sleeping facilities. In this case, ranting private houses could offer an indication of the 
territory’s potential hidden tourism, but not always correspond to the tourist demand. 
Therefore, relying only on an estimate of the hidden tourism by calculating the ‘not official’ 
accommodation facilities the result would only be an estimate of the potential phenomenon. 
Consequently, the information gathered in terms of a tourist development policy would give a 
negative impression and economic inefficient determining excessive tourist services offered by 
the territory. Then, an estimate of the demand and consumption help calculate the amount of 
hidden tourism rather than a valuation on the volume of the accommodation supply.  
 
An additional consideration is the use of holiday homes rented out to tourist, the owner being 
resident elsewhere. In this case, in fact, the income generated will produce benefits in other 
territories (Bos, 1995). Other elements of hidden tourism (sailing, caravanning, and camping) 
do not permit accommodation estimates of the territory. An idea of the demand is entrusted to 
specially setup indicators. Again economic value of the phenomenon relies on an estimate of 
consumption, such as boat berths and moorings, parking space, food and refuse water, etc. 
 
5.  Final remarks  
 
The quantitative determination of hidden tourism phenomenon requires the formalization of a 
methodological approach suitable for the measurement and estimate of the tourism dimension The Annals of “Dunarea de Jos” University of Galati  
Fascicle I – 2009. Economics and Applied Informatics. Years XV - ISSN 1584-0409 
 
 
  32
that is not identified by the official data. This approach have to be supported by information 
that consider the different characteristics of tourism supply and demand. The estimate of the 
phenomenon must resort to information specifying demand and supply, which is deductible 
from both these two sources. 
 
Theoretically, a large quantity could be used as basic elements for the construction of 
indicators, however the margin between useful or useless information could be quite wide. If, 
on the one hand, the use of full scale information premises the construction of direct or indirect 
indicators aimed at estimating the quota of hidden tourism, on the other hand it is first 
necessary to verify the authenticity, validity, utility and availability relating to the phenomenon 
under observation. In this sense, literature shows that serious problems occur in the use of 
indirect indicators, because of the restrictive hypotheses adopted to which results are highly 
sensitive. This method seems to give useful indications only when applied to small areas with 
specific characteristics. Then, the risk is to penalise the end results of the estimate and 
eventually reduce the correct information regarding the hidden phenomenon in terms of tourist 
development and territorial opportunity for the planning and setting up of the tourist supply in 
answer to the requirements of the demand.  
 
References 
 
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Alcune metodologie innovative dei flussi turistici, Settimo rapporto sul turismo italiano,

An ecological perspective on carrying capacity,

Competition of Destinations – Is there a Need for Strategic Tourism Policy?, AIEST, Future-Oriented Tourism Policy. A contribution to the Strategic Development of Places,

Countryside recreation,

Dall’impresa alle forme di offerta complesse: le principali problematiche strategiche ed organizzative di un sistema locale di offerta turistica, Economia e diritto del terziario,

Environmental management of a tourist destination. A factor of tourism competitiveness,

Establishing the social tourism carrying capacity for the tourist resorts of the east coast of the Republic of Cyprus,

Il marketing territoriale: un nuovo approccio per la valorizzazione delle aree economico-sociali, Economia e diritto del terziario,

L’utilisation de la recherché touristique, notamment en matière de motivation, dans la conception et la réalisation des projets d’aménagement et des politiques d’accueil, AIEST, La recherche touristique : succès, échecs et problèmes non résolus,

Tourism Development and the ‘Hidden’ Phenomenon

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