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Impact of Foreign Tourists on Productivity in the Accommodation Industry : A panel data analysis

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  • Morikawa, Masayuki

Abstract

Recently, the number of foreign tourists visiting Japan has been rapidly increasing, and the overseas travel balance has drastically changed. By using micro panel data, this study empirically analyzes the effects of this increase on productivity in the accommodation industry. The novelty of this study is represented by the use of a physical productivity measure to document an unexplored channel through which service trade contributes to increasing the productivity in the domestic service industry. The estimation results show that an increase in the number of foreign guests significantly improves the measured total factor productivity (TFP) of the accommodation facilities, although the effect of foreign presence is quite heterogeneous across facilities.

Suggested Citation

  • Morikawa, Masayuki, 2017. "Impact of Foreign Tourists on Productivity in the Accommodation Industry : A panel data analysis," SSPJ Discussion Paper Series DP17-012, Service Sector Productivity in Japan: Determinants and Policies, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:sspjdp:dp17-012
    Note: This paper is based on joint research with the Research Institute of Economy, Trade and Industry (RIETI).
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    Cited by:

    1. KONDO Keisuke, 2019. "The Costs of Urban Agglomeration: Evidence from the Inbound Tourism Boom in Japan," Discussion papers 19106, Research Institute of Economy, Trade and Industry (RIETI).
    2. MORIKAWA Masayuki, 2018. "Effects of Distance and Borders on International and Interregional Tourist Flows: A micro-gravity analysis," Discussion papers 18021, Research Institute of Economy, Trade and Industry (RIETI).
    3. KAMEYAMA Yoshihiro, 2023. "Inbound Tourism Demand and Japanese Regional Productivity before the COVID-19 Pandemic: The role of tourism agglomeration and electronic payment," Discussion papers 23009, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    Foreign tourism; Accommodation industry; TFP; Demand smoothing;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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