War, terror, and the tourism market in Israel
AbstractA supply and demand model of the Israeli hotel industry is developed, distinguishing between its domestic and foreign sectors. Model simulations are employed to examine the impacts of war and terrorist incidents on tourist activity and hotel revenues. Foreign demand for Israeli hotel stays is highly price-elastic and income-inelastic, and moderately sensitive to terrorist events. Domestic demand is price-inelastic, income-elastic, and terror-insensitive. In the wake of terror attacks, hotels' supply or minimum prices to Israeli tourists shift downward, reducing local market prices and encouraging more local tourism. However, the magnitude of these shifts is minor, and the local market thus provides little buffer for dropoffs in foreign tourism. By permitting excess capacity in such fashion, hotels respond rationally to the price inelasticity of local demand.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 34 (2002)
Issue (Month): 11 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gautier, Pieter A. & Siegmann, Arjen & Van Vuuren, Aico, 2009. "Terrorism and attitudes towards minorities: The effect of the Theo van Gogh murder on house prices in Amsterdam," Journal of Urban Economics, Elsevier, vol. 65(2), pages 113-126, March.
- Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2004.
"Calculating Tragedy: Assessing the Costs of Terrorism,"
CESifo Working Paper Series
1341, CESifo Group Munich.
- Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2007. "Calculating Tragedy: Assessing The Costs Of Terrorism," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 1-24, 02.
- Bruno S. Frey & Simon Luechinger & Alois Stutzer, 2004. "Calculating Tragedy: Assessing the Costs of Terrorism," CREMA Working Paper Series 2004-23, Center for Research in Economics, Management and the Arts (CREMA).
- Bruno S. Frey & Simon Luechinger & Alois Stutzer, . "Calculating Tragedy: Assessing the Costs of Terrorism," IEW - Working Papers 205, Institute for Empirical Research in Economics - University of Zurich.
- Pieter A. Gautier & Arjen Siegmann & Aico van Vuuren, 2007. "The Effect of the Theo van Gogh Murder on House Prices in Amsterdam," Tinbergen Institute Discussion Papers 07-013/3, Tinbergen Institute.
- Eldor, Rafi & Melnick, Rafi, 2004. "Financial markets and terrorism," European Journal of Political Economy, Elsevier, vol. 20(2), pages 367-386, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.