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The effect of tourism activity on housing affordability

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  • Mikulić, Josip
  • Vizek, Maruška
  • Stojčić, Nebojša
  • Payne, James E.
  • Čeh Časni, Anita
  • Barbić, Tajana

Abstract

Although researchers have confirmed the impact of tourism on housing prices in many destinations affected with overtourism, they do not consider housing affordability in relation to the population's income levels. This study explores the relationship between tourism activity and housing affordability, using a sample of Croatian municipalities. Specifically, the study investigates how tourist accommodation, concentration, seasonality and overall vulnerability to tourism influence housing affordability in this emerging tourism-driven European country. The results obtained reveal tourism intensification's deteriorating effect on local residents' abilities to afford housing. The findings indicate a particularly strong tourism seasonality impact, suggesting the presence of common negative externalities, such as employment fluctuations, difficulties in maintaining economic status, and revenue instabilities, in localities prone to seasonal tourism fluctuations.

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  • Mikulić, Josip & Vizek, Maruška & Stojčić, Nebojša & Payne, James E. & Čeh Časni, Anita & Barbić, Tajana, 2021. "The effect of tourism activity on housing affordability," Annals of Tourism Research, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:anture:v:90:y:2021:i:c:s0160738321001420
    DOI: 10.1016/j.annals.2021.103264
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    1. MaruÅ¡ka Vizek & NebojÅ¡a StojÄ ić & Josip Mikulić, 2023. "Spatial spillovers of tourism activity on housing prices: The case of Croatia," Tourism Economics, , vol. 29(5), pages 1376-1390, August.
    2. Dwyer, Larry, 2024. "Tourism Degrowth and Resident Well-being," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 12(3), pages 206-225.
    3. Scarpi, Daniele & Confente, Ilenia & Russo, Ivan, 2022. "The impact of tourism on residents' intention to stay. A qualitative comparative analysis," Annals of Tourism Research, Elsevier, vol. 97(C).
    4. Mikulić, Josip & Vitezić, Vanja & Srhoj, Stjepan & Kuliš, Zvonimir, 2024. "Tourism Boom, Housing Doom: Excessive Tourism And International Emigration," GLO Discussion Paper Series 1501, Global Labor Organization (GLO).
    5. Chi, Yuan & Liu, Dahai & Qu, Yubing & Zhang, Zhiwei & Liu, Zhenhang, 2023. "Archipelagic human-land spatial interrelations: An empirical study in Shengsi Archipelago, China," Land Use Policy, Elsevier, vol. 130(C).
    6. Beatriz Tovar & David Boto-García & José Francisco Baños Pino, 2024. "Meeting externalities: The effects of educational training on support for tourism activities," Tourism Economics, , vol. 30(3), pages 785-805, May.
    7. Boto-García, David & Pérez, Levi, 2023. "The effect of high-speed rail connectivity and accessibility on tourism seasonality," Journal of Transport Geography, Elsevier, vol. 107(C).
    8. Sook Rei Tan & Jacob Wood & Haejin Jang & Caroline Wong & Changtai Li, 2024. "Tourism‐induced growth and quality of life: the Singapore story," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 38(1), pages 204-224, May.
    9. Maruška Vizek & Tajana Barbić & Anita Čeh Časni, 2024. "The impact of the tourism accommodation composition on housing prices: The case of Croatia," Tourism Economics, , vol. 30(1), pages 267-274, February.

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    More about this item

    Keywords

    Tourism intensity; Housing affordability; Dynamic panel model; Croatia;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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