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Demand for rural tourism: the effects of quality and information

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  • Dimitris Skuras
  • Anastasia Petrou
  • Gordon Clark

Abstract

The development of rural tourism is regarded as a promising diversification strategy especially for lagging and mountainous areas of the European Union. Research concerning the demand and/or supply of rural tourism services has been limited within the agricultural economics domain despite the significance attached to rural tourism by various rural development policy measures and initiatives. The article examines the expenditure behavior of rural tourists within a framework of demand for composite (heterogeneous) goods. The proposed framework captures the quality of the tourism experience as the commodity's unit value, a quantifiable economic variable, examines its effects on expenditures and allows for the estimation of elasticity in prices regarding expenditure and quantity. Empirical analysis is facilitated by a survey recording the expenditure behavior of 465 tourists in two rural and lagging areas of Greece. The quality of the tourism experience is significantly and positively affected by the income, the source from which information about the trip is retrieved (Internet, newspapers as well as general press and special travel press) and by the amount of information sought by the consumer prior to the trip. In turn, the quality of the tourism experience is the major endogenous factor that positively influences expenditures for rural tourism. Further research is needed before evidence provided in this work can be used to draw policy conclusions and recommendations.

Suggested Citation

  • Dimitris Skuras & Anastasia Petrou & Gordon Clark, 2006. "Demand for rural tourism: the effects of quality and information," Agricultural Economics, International Association of Agricultural Economists, vol. 35(2), pages 183-192, September.
    • Handle: RePEc:bla:agecon:v:35:y:2006:i:2:p:183-192
    DOI: 10.1111/j.1574-0862.2006.00151.x
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    References listed on IDEAS

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    1. Kyle Bagwell & Michael Riordan, 1986. "Equilibrium Price Dynamics for an Experience Good," Discussion Papers 705, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    2. Dimara, Efthalia & Petrou, Anastasia & Skuras, Dimitris, 2002. "Consumer´s appreciation of regional image and the perceived quality of rural tourism," ERSA conference papers ersa02p272, European Regional Science Association.
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    Cited by:

    1. Aliza Fleischer & Judith Rivlin (Byk), 2009. "Quality, Quantity and Duration Decisions in Household Demand for Vacations," Tourism Economics, , vol. 15(3), pages 513-530, September.
    2. Jan Zawadka & Anna Jęczmyk & Monika Małgorzata Wojcieszak-Zbierska & Gniewko Niedbała & Jarosław Uglis & Joanna Pietrzak-Zawadka, 2022. "Socio-Economic Factors Influencing Agritourism Farm Stays and Their Safety during the COVID-19 Pandemic: Evidence from Poland," Sustainability, MDPI, vol. 14(6), pages 1-17, March.
    3. Ivo Grgić & Lari Hadelan & Stjepan Krznar & Magdalena Zrakić, 2017. "Could rural tourism revitalize rural areas in Croatia?," Agroeconomia Croatica, Croatian Society of Agricultural Economists, vol. 7(1), December.
    4. Mayer Marius & Vogt Luisa, 2016. "Economic effects of tourism and its influencing factors: An overview focusing on the spending determinants of visitors," Zeitschrift für Tourismuswissenschaft, De Gruyter, vol. 8(2), pages 169-198, November.
    5. Ohe, Yasuo, 2009. "Educational Function of Agriculture and Farm Diversification: Evidence from Dairy Farming Experience Services in Japan," 2009 Conference, August 16-22, 2009, Beijing, China 51557, International Association of Agricultural Economists.
    6. M. Lošťák & H. Hudečková, 2008. "Agriculture and farming related activities: their actors and position in the LEADER approach," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 54(6), pages 245-262.

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