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Development Strategies for Tourism Destinations: Tourism Sophistication vs. Resource Investments

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  • Andergassen Rainer
  • Candela Guido

Abstract

This paper investigates the effectiveness of development strategies for tourism destinations. We argue that resource investments unambiguously increase tourism revenues and that increasing the degree of tourism sophistication, that is increasing the variety of tourism related goods and services, increases tourism activity and decreases the perceived quality of the destination's resource endowment, leading to an ambiguous effect on tourism revenues. We disentangle these two effects and characterize situations where increasing the degree of tourism sophistication is a viable development strategy and where it is impracticable and describe the optimal policy mix.

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Bibliographic Info

Article provided by Società editrice il Mulino in its journal Economia politica.

Volume (Year): (2012)
Issue (Month): 2 ()
Pages: 173-192

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Handle: RePEc:mul:jb33yl:doi:10.1428/37628:y:2012:i:2:p:173-192

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Keywords: J.E.L. L83; O1; D11;

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Cited by:
  1. Rakela Thano, 2013. "Touristic Investments in Saranda Region," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(2), pages 9, April.

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