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Estimating the Tourism Demand Impact of Public Infrastructure Investment: The Case of Malaga Airport Expansion

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  • Juan L. Eugenio-Martin

    (Universidad de Las Palmas de Gran Canaria, Facultad de Economía, Empresa y Turismo, Módulo D, Despacho D.2-06, Campus de Tafira, 35017 Las Palmas de Gran Canaria, Spain)

Abstract

This paper shows how structural time series models can be used to estimate the tourism demand impact of an airport expansion. The impact is measured by interventions in the series. Such interventions can be related to one-off events, permanent shifts or permanent changes in the slope of the series. The study case is the Malaga airport expansion. The impact distinguishes two effects: the new terminal building and the new runway. The results show that the infrastructure made a difference in attracting additional international tourists, especially those flying with low-cost carriers. The estimations show that the traffic increased by 6% due to the new terminal building, and the growth rate increased by 18% due to the new runway.

Suggested Citation

  • Juan L. Eugenio-Martin, 2016. "Estimating the Tourism Demand Impact of Public Infrastructure Investment: The Case of Malaga Airport Expansion," Tourism Economics, , vol. 22(2), pages 254-268, April.
    • Handle: RePEc:sae:toueco:v:22:y:2016:i:2:p:254-268
    DOI: 10.5367/te.2016.0547
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    References listed on IDEAS

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    Cited by:

    1. Jose I Castillo-Manzano & Mercedes Castro-Nuño & Lourdes Lopez-Valpuesta & à lvaro Zarzoso, 2021. "Quality versus quantity: An assessment of the impact of Michelin-starred restaurants on tourism in Spain," Tourism Economics, , vol. 27(5), pages 1166-1174, August.
    2. A Fronzetti Colladon & B Guardabascio & R Innarella, 2021. "Using social network and semantic analysis to analyze online travel forums and forecast tourism demand," Papers 2105.07727, arXiv.org.
    3. Doerr, Luisa & Dorn, Florian & Gaebler, Stefanie & Potrafke, Niklas, 2020. "How new airport infrastructure promotes tourism: evidence from a synthetic control approach in German regions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 54(10), pages 1402-1412.
    4. 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).

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