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The Impact of Inbound Demand on Price Levels in Tourism Municipalities: Empirical Evidence from Catalonia

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  • Josep-Maria Espinet
  • Modest FluviÃ
  • Ricard Rigall-I-Torrent

Abstract

It is usually argued that tourism exerts negative economic impacts in host jurisdictions through the increase in prices linked to increasing demand for basic services and goods from tourists. This paper surveys 149 products in 45 tourism and non-tourism jurisdictions in Catalonia (which represent a total of 18,500 prices) in order to test empirically several hypotheses related to differences in price levels in tourism and non-tourism jurisdictions. The main results show that prices in tourism jurisdictions are not significantly higher than those in non-tourism ones. The analysis suggests that tourists are likely to pay higher prices than natives for some products.

Suggested Citation

  • Josep-Maria Espinet & Modest Fluvià & Ricard Rigall-I-Torrent, 2011. "The Impact of Inbound Demand on Price Levels in Tourism Municipalities: Empirical Evidence from Catalonia," Tourism Economics, , vol. 17(1), pages 159-189, February.
    • Handle: RePEc:sae:toueco:v:17:y:2011:i:1:p:159-189
    DOI: 10.5367/te.2011.0020
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    References listed on IDEAS

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    Cited by:

    1. José Manuel Ordóñez-de-Haro & Jordi Perdiguero & Juan-Luis Jiménez, 2020. "Fuel prices at petrol stations in touristic cities," Tourism Economics, , vol. 26(1), pages 45-69, February.

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