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A Structural View of Tourism Growth

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  • Egon Smeral

    (Austrian Institute of Economic Research, PO Box 91, A-1103 Vienna, Austria; and University of Innsbruck, Institute of Management, Service Economics and Tourism, Universitätsstrasse 15, A-6020 Innsbruck, Austria)

Abstract

Structural factors are important when it comes to explaining tourism growth. In this connection, crucial roles are played by structural change in demand and differentials between productivity in tourism and in manufacturing. The demand factor stimulates the rise of tourism demand and explains why tourism grows faster than the global economy as such or why the income elasticity is above 1: tourism is a luxury good, and structural change in demand is a key factor in analysing its development. Once saturation has been achieved in basic needs and durable goods, a growing economy has more money left to spend on, first, leisure and tourism services and, secondly, knowledge-based goods and services. In contrast to manufacturing, opportunities to increase productivity are limited in the tourism industry. Because there are fewer options for rationalization, tourism services become more expensive in the long term than manufactured goods or other services, and this weakens the demand-triggered growth effect. Nevertheless, in sum the demand effect is stronger than the productivity disadvantages. As a side-effect of the productivity disadvantages and the demand effect, employment grows as a share of total employment in the hotel and restaurant industry, the core segments of the tourism business.

Suggested Citation

  • Egon Smeral, 2003. "A Structural View of Tourism Growth," Tourism Economics, , vol. 9(1), pages 77-93, March.
    • Handle: RePEc:sae:toueco:v:9:y:2003:i:1:p:77-93
    DOI: 10.5367/000000003101298286
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    References listed on IDEAS

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    Cited by:

    1. Campos-Soria, Juan A. & Inchausti-Sintes, Federico & Eugenio-Martin, Juan L., 2015. "Understanding tourists' economizing strategies during the global economic crisis," Tourism Management, Elsevier, vol. 48(C), pages 164-173.
    2. Fernando Sánchez López & José Nabor Cruz Marcelo, 2019. "Kidnapping as a long-term factor for cruise tourism demand: Evidence from Mexico (El secuestro como factor de largo plazo para la demanda de turismo de cruceros: evidencia de México)," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 83(5), pages 185-217, September.
    3. Martin Enilov & Yuan Wang, 2022. "Tourism and economic growth: Multi-country evidence from mixed-frequency Granger causality tests," Tourism Economics, , vol. 28(5), pages 1216-1239, August.
    4. Jihye Min & Jerome Agrusa & Joseph Lema & Harold Lee, 2020. "The Tourism Sector and U.S. Regional Macroeconomic Stability: A Network Approach," Sustainability, MDPI, vol. 12(18), pages 1-12, September.
    5. Raffaello Bronzini & Emanuele Ciani & Francesco Montaruli, 2022. "Tourism and local growth in Italy," Regional Studies, Taylor & Francis Journals, vol. 56(1), pages 140-154, January.
    6. Jeroen Klijs & Jack Peerlings & Wim Heijman, 2017. "Introducing labour productivity changes into models used for economic impact analysis in tourism," Tourism Economics, , vol. 23(3), pages 561-576, May.
    7. Simone Marsiglio, 2018. "On the implications of tourism specialization and structural change in tourism destinations," Tourism Economics, , vol. 24(8), pages 945-962, December.
    8. Federico Inchausti-Sintes, 2020. "A tourism growth model," Tourism Economics, , vol. 26(5), pages 746-763, August.
    9. Vanegas Sr., Manuel & Croes, Robertico, 2007. "Tourism, Economic Expansion and Poverty in Nicaragua: Investigating Cointegration and Causal Relations," Staff Papers 7306, University of Minnesota, Department of Applied Economics.
    10. Roberto Cellini & Gianpiero Torrisi, 2013. "Regional Public Spending for Tourism in Italy: An Empirical Analysis," Tourism Economics, , vol. 19(6), pages 1361-1384, December.
    11. Federico Inchausti-Sintes & Ubay Pérez-Granja & José Juan Morales-Mohamed, 2021. "Analysing labour productivity and its economic consequences in the two Spanish tourist archipelagos," Tourism Economics, , vol. 27(5), pages 1039-1059, August.
    12. Egon Smeral, 2007. "Ausrichtung der Tourismusstrategie 2015. Weichenstellung im österreichischen Tourismus zur Steigerung von Wachstum und Beschäftigung," WIFO Monatsberichte (monthly reports), WIFO, vol. 80(8), pages 675-685, August.
    13. Fernando Sánchez López, 2022. "Measuring the Effect of the Misery Index on International Tourist Departures: Empirical Evidence from Mexico," Economies, MDPI, vol. 10(4), pages 1-16, April.
    14. Egon Smeral, 2010. "Tourismusstrategische Ausrichtung 2015 – Wachstum durch Strukturwandel," WIFO Studies, WIFO, number 40675, Juni.
    15. Egon Smeral, 2006. "Teilstudie 17: Wachstums- und Beschäftigungschancen im Tourismus," WIFO Studies, WIFO, number 27456, Juni.
    16. Kim, Hong-bumm & Park, Jung-Ho & Lee, Seul Ki & Jang, SooCheong (Shawn), 2012. "Do expectations of future wealth increase outbound tourism? Evidence from Korea," Tourism Management, Elsevier, vol. 33(5), pages 1141-1147.
    17. Luiz Moutinho & K.-H. Huarng & Tiffany Yu & C.-Y. Chen, 2008. "Modeling and forecasting tourism demand: the case of flows from Mainland China to Taiwan," Service Business, Springer;Pan-Pacific Business Association, vol. 2(3), pages 219-232, September.
    18. S. Giannoni & F. Cerina, 2008. "Pollution Adverse Tourists and Growth," Working Paper CRENoS 200822, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    19. Fernando Sánchez López, 2019. "Unemployment and Growth in the Tourism Sector in Mexico: Revisiting the Growth-Rate Version of Okun’s Law," Economies, MDPI, vol. 7(3), pages 1-17, August.
    20. Darko B. Vuković & Moinak Maiti & Marko D. Petrović, 2023. "Tourism Employment and Economic Growth: Dynamic Panel Threshold Analysis," Mathematics, MDPI, vol. 11(5), pages 1-14, February.
    21. F. Cerina, 2012. "Endogenous Growth and Sustainable Tourism," Working Paper CRENoS 201234, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    22. Croes, Robertico & Ridderstaat, Jorge & Shapoval, Valeriya, 2020. "Extending tourism competitiveness to human development," Annals of Tourism Research, Elsevier, vol. 80(C).
    23. Egon Smeral, 2007. "Tourismusstrategische Ausrichtung 2015: Weichenstellung im österreichischen Tourismus für mehr Wachstum und Beschäftigung," WIFO Studies, WIFO, number 28918, Juni.
    24. Egon Smeral, 2008. "Das österreichische Beherbergungs- und Gaststättenwesen im regionalen Vergleich," WIFO Studies, WIFO, number 33960, Juni.
    25. Ernest Gnan & Jürgen Janger & Johann Scharler, 2004. "Determinants of Long-Term Growth in Austria – A Call for a National Growth Strategy," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 23-46.

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