In this short paper we analyze the impact of tourist demand in hotel rooms on the investment of hotels on environmental quality. We show that when income of the tourists increases, then to maintain the demand for rooms, the hotels must in-crease the investment on the environmental quality of the region where there is an increment of the tourist activity. In the particular case where we have three differ-ent hotel chains located in three different tourist regions, we show that the incen-tive of hotel chains to invest in environmental quality depends on the demand for days of rest on the part of tourists and on the level of aggregate income. We also show that if total income increase, then the incentive to invest in environmental quality increases in the region where the price of a hotel room is lower.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
6372.
Length: Date of creation: Nov 2007 Date of revision: Publication status: Published in TOURISMOS: An International Multidisciplinary Journal of Tourism 2.2(2007): pp. 129-140 Handle: RePEc:pra:mprapa:6372
Find related papers by JEL classification: M0 - Business Administration and Business Economics; Marketing; Accounting - - General D0 - Microeconomics - - General L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
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