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Airport relocation and expansion and the estimation of derived tourist demand: The case of Eilat, Israel

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  • Ergas, Yaron
  • Felsenstein, Daniel

Abstract

This paper looks at capacity expansion relating to an airport and the derived tourist demand that this facilitates. The context is the airport relocation planned for the tourist destination of Eilat, Israel. The paper addresses three issues. First, using a multi-regional input output model for Israel, we estimate the magnitude of the static inter-sectoral impacts associated with airport construction and operation and their impact on the regional and national economy. Second, we focus on the lag effects in this process as increased tourism demand does not elicit an immediate response on the supply side in terms of new hotel investment. Third, on the demand side, we estimate additional tourism expenditure in non-hotel activities over the period that the market adjusts and beyond.

Suggested Citation

  • Ergas, Yaron & Felsenstein, Daniel, 2012. "Airport relocation and expansion and the estimation of derived tourist demand: The case of Eilat, Israel," Journal of Air Transport Management, Elsevier, vol. 24(C), pages 54-61.
    • Handle: RePEc:eee:jaitra:v:24:y:2012:i:c:p:54-61
    DOI: 10.1016/j.jairtraman.2012.06.005
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    References listed on IDEAS

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    1. Alicia H. Munnell, 1990. "How does public infrastructure affect regional economic performance?," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 34, pages 69-112.
    2. Jacco Hakfoort & Tom Poot & Piet Rietveld, 2001. "The Regional Economic Impact of an Airport: The Case of Amsterdam Schiphol Airport," Regional Studies, Taylor & Francis Journals, vol. 35(7), pages 595-604.
    3. Freeman, Daniel & Felsenstein, Daniel, 2007. "Forecasting Regional Investment in the Hotel Industry: An Input-Output Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(3), pages 1-14.
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    Citations

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    Cited by:

    1. Stylidis, Dimitrios & Shani, Amir & Belhassen, Yaniv, 2017. "Testing an integrated destination image model across residents and tourists," Tourism Management, Elsevier, vol. 58(C), pages 184-195.
    2. Maximilian Benner, 2021. "Revisiting path-as-process: A railroad track model of path development, transformation, and agency," PEGIS geo-disc-2021_09, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    3. Benner, Maximilian & Michael, Dollinger & Elisa, Gliesner & Rouven, Pelz, 2017. "Upgrading a tourism cluster: The case of Eilat," MPRA Paper 81175, University Library of Munich, Germany.
    4. Maximilian Benner, 2022. "Legitimizing path development by interlinking institutional logics: The case of Israel's desert tourism," PEGIS geo-disc-2022_01, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    5. Maximilian Benner, 2021. "A tale of sky and desert: Translation and imaginaries in transnational windows of institutional opportunity," PEGIS geo-disc-2021_08, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.

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