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Transport Capital as a Determinant of Tourism Development: A Time Series Approach

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  • Boopen, Seetanah
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    Abstract

    Little serious research has been undertaken into the significance of transport as a factor in destination development despite being acknowledged by many writers. The paper aims at identifying and quantifying the factors that made Mauritius attractive to tourists and also to more importantly to investigate the importance transportation capital in the overall destination’s attractiveness. The novelty of this paper is that is extends a classical demand for international tourism function to include a proxy of public capital stock which has been decoupled into transport and non-transport infrastructure, and also uses co-integration analysis to model the determinants of tourism for a small island economy case. Results from the analysis show that transport capital stock of the country has been contributing positively of the number of tourist arrival in both short and long run. Tourism infrastructure is reported to be a more important ingredient than transport in the tourism equation. Non transport infrastructure, though having a positive sign, was however found to be insignificant. The study thus highlights the importance of transport capital in adding to the value of service and experience received by tourism.

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    File URL: http://mpra.ub.uni-muenchen.de/25402/
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    Bibliographic Info

    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25402.

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    Date of creation: 24 Jul 2005
    Date of revision: 07 Nov 2006
    Publication status: Published in TOURISMOS: An International Multidisciplinary Refereed Journal of Tourism 1.1(2006): pp. 55-73
    Handle: RePEc:pra:mprapa:25402

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    Related research

    Keywords: Co-integration; Error Correction Model; Small Island Economy;

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    1. Crouch, Geoffrey I. & Ritchie, J. R. Brent, 1999. "Tourism, Competitiveness, and Societal Prosperity," Journal of Business Research, Elsevier, Elsevier, vol. 44(3), pages 137-152, March.
    2. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 12(2-3), pages 231-254.
    3. Christine Lim & Michael McAleer, 2001. "Time Series Forecasts of International Tourism Demand for Australia," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0533, Institute of Social and Economic Research, Osaka University.
    4. Tang, John C. S. & Rochananond, Narisara, 1990. "Attractiveness as a tourist destination: A comparative study of Thailand and selected countries," Socio-Economic Planning Sciences, Elsevier, Elsevier, vol. 24(3), pages 229-236.
    5. Witt, Stephen F. & Witt, Christine A., 1995. "Forecasting tourism demand: A review of empirical research," International Journal of Forecasting, Elsevier, Elsevier, vol. 11(3), pages 447-475, September.
    6. Nordström, Jonas, 2002. "Dynamic and Stochastic Structures in Tourism Demand Modelling," UmeÃ¥ Economic Studies, UmeÃ¥ University, Department of Economics 596, Umeå University, Department of Economics.
    7. Yair Eilat & Liran Einav, 2004. "Determinants of international tourism: a three-dimensional panel data analysis," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(12), pages 1315-1327.
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