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An Analysis of the Relationship between Transport Capital and Tourism Development in a Dynamic Framework

Author

Listed:
  • Boopen Seetanah

    (Department of Finance and Accounting, Faculty of Law and Management, University of Mauritius, Reduit, Republic of Mauritius)

  • Jameel Khadaroo

    (Bank of Mauritius, Mauritius)

Abstract

This paper investigates the contribution of transportation capital, an often neglected element in the overall attractiveness of Mauritius as a tourist destination. To gauge its effect, the study extends a classical demand for international tourism function to include a proxy of transport infrastructure. Accounting for the possibility of endogeneity and dynamism in tourism modelling, cointegration analysis in a vector autoregressive model is employed to assess the hypothesized link. Results from the analysis show that the stock of transport capital has contributed positively to the number of tourist arrivals in both the short run and the long run. The study thus highlights the importance of transport capital in adding to the value of tourism service and experience.

Suggested Citation

  • Boopen Seetanah & Jameel Khadaroo, 2009. "An Analysis of the Relationship between Transport Capital and Tourism Development in a Dynamic Framework," Tourism Economics, , vol. 15(4), pages 785-802, December.
    • Handle: RePEc:sae:toueco:v:15:y:2009:i:4:p:785-802
    DOI: 10.5367/000000009789955215
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    References listed on IDEAS

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    1. Willem A. Naudé & Andrea Saayman, 2005. "Determinants of Tourist Arrivals in Africa: A Panel Data Regression Analysis," Tourism Economics, , vol. 11(3), pages 365-391, September.
    2. Yair Eilat & Liran Einav, 2004. "Determinants of international tourism: a three-dimensional panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 36(12), pages 1315-1327.
    3. Alfredo M. Pereira, 2000. "Is All Public Capital Created Equal?," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 513-518, August.
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    Cited by:

    1. Tina T He & Wilson XB Li, 2021. "Revisiting tourism’s additional impact on income," Tourism Economics, , vol. 27(1), pages 149-167, February.
    2. Amitrajeet A. Batabyal & Hamid Beladi, 2015. "Optimal Transport Provision To A Tourist Destination: A Mechanism Design Approach," Working Papers 0140eco, College of Business, University of Texas at San Antonio.
    3. Batabyal, Amitrajeet A. & Beladi, Hamid, 2015. "Optimal transport provision to a tourist destination: A contract theory perspective," Economic Modelling, Elsevier, vol. 47(C), pages 180-184.
    4. Amitrajeet Batabyal & Hamid Beladi, 2011. "Transport provision to tourists by a cost minimizing firm: a stochastic characterization," Letters in Spatial and Resource Sciences, Springer, vol. 4(2), pages 103-108, July.
    5. L. Zhang & Y. P. Wang & J. Sun & B. Yu, 2019. "The sightseeing bus schedule optimization under Park and Ride System in tourist attractions," Annals of Operations Research, Springer, vol. 273(1), pages 587-605, February.
    6. Rehman Khan, Syed Abdul & Qianli, Dong & SongBo, Wei & Zaman, Khalid & Zhang, Yu, 2017. "Travel and tourism competitiveness index: The impact of air transportation, railways transportation, travel and transport services on international inbound and outbound tourism," Journal of Air Transport Management, Elsevier, vol. 58(C), pages 125-134.
    7. Mallick, Sanmoy & Mitra, Professor Debabrata & Ghosh, Dr Amlan, 2021. "Selection Of Tourist Destination For Investment Decision: A Holistic Model," MPRA Paper 115369, University Library of Munich, Germany, revised 03 Nov 2022.
    8. Cao, Zheng & Li, Gang & Song, Haiyan, 2017. "Modelling the interdependence of tourism demand: The global vector autoregressive approach," Annals of Tourism Research, Elsevier, vol. 67(C), pages 1-13.
    9. Eugenio-Martin, Juan Luis & Perez-Granja, Ubay, 2022. "Quantifying the net impact and redistribution effects of airlines’ exits on passenger traffic," Journal of Air Transport Management, Elsevier, vol. 101(C).
    10. Eugeni Aguiló & Teresa Palmer & Jaume Rosselló, 2012. "Road Transport for Tourism: Evaluating Policy Measures from Consumer Profiles," Tourism Economics, , vol. 18(2), pages 281-293, April.
    11. Pagliara, Francesca & La Pietra, Andrea & Gomez, Juan & Manuel Vassallo, José, 2015. "High Speed Rail and the tourism market: Evidence from the Madrid case study," Transport Policy, Elsevier, vol. 37(C), pages 187-194.
    12. Daniel Albalate del sol, 2015. "Evaluating HSR availability on Tourism: Evidence from Spanish Provinces and Cities," ERSA conference papers ersa15p288, European Regional Science Association.

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