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High unemployment and tourism participation

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  • Joaquín Alegre
  • Llorenç Pou
  • Maria Sard

Abstract

This paper analyses individual tourism participation decisions during a worldwide economic downturn. Given the nature of tourism services, a reduction in habitual consumption is highly probable during an economic crisis. Since the unemployment rate is strongly correlated with the economic cycle, the hypothesis that is discussed concerns whether residents’ decision to participate in tourism is affected by their region's level of unemployment. More specifically, it is suggested that unemployment not only affects the tourism participation decision of those who are out-of-work, but that aggregate unemployment (measured as the region's unemployment rate) also has a bearing on such decisions made by individuals in general. The results that were obtained for a set of EU countries show that the unemployment level has a positive effect on the probability of not going on holidays. This effect emerges when there is an unemployment rate of over 10%.

Suggested Citation

  • Joaquín Alegre & Llorenç Pou & Maria Sard, 2019. "High unemployment and tourism participation," Current Issues in Tourism, Taylor & Francis Journals, vol. 22(10), pages 1138-1149, June.
    • Handle: RePEc:taf:rcitxx:v:22:y:2019:i:10:p:1138-1149
    DOI: 10.1080/13683500.2018.1464550
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