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Does Gambling Complement the Tourist Industry? Some Empirical Evidence of Import Substitution and Demand Displacement

Author

Listed:
  • Michael Przybylski

    (The Center for Urban Policy and the Environment, School of Public and Environmental Affairs, Indiana University, Indianapolis, IN 46204, USA)

  • Daniel Felsenstein

    (Department of Geography, Hebrew University of Jerusalem, Mount Scopus, Jerusalem, Israel)

  • Daniel Freeman

    (Computerized Economic Models, Rehovot, Israel)

  • Laura Littlepage

    (The Center for Urban Policy and the Environment, School of Public and Environmental Affairs, Indiana University, Indianapolis, IN 46204, USA)

Abstract

Gambling is intuitively considered as part of the tourism ‘package’. This paper empirically assesses this perception in the context of actual casino development in Indiana and simulated impacts of a hypothetical casino in Israel. In both contexts, the sources of demand for gambling, the extent to which these are ‘tourist’ sources and the question of gambling-generated demand displacing existing tourist demand, are examined. Despite the rather different market and political contexts in Indiana and Israel, the findings on the gambling-tourism relationship and the effect of gambling on local economies, are remarkably consistent. In both cases, gambling is seen to be grounded in import-substitution rather than pure ‘export’ activity. Additionally, in both cases there is evidence that the introduction of gambling displaces tourist demand. The policy implications of these findings point to the need to differentiate between local and national impacts of gambling and between the local fiscal and local economic development impacts.

Suggested Citation

  • Michael Przybylski & Daniel Felsenstein & Daniel Freeman & Laura Littlepage, 1998. "Does Gambling Complement the Tourist Industry? Some Empirical Evidence of Import Substitution and Demand Displacement," Tourism Economics, , vol. 4(3), pages 213-231, September.
    • Handle: RePEc:sae:toueco:v:4:y:1998:i:3:p:213-231
    DOI: 10.1177/135481669800400301
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    Cited by:

    1. Gazel, Ricardo & Rickman, Dan S. & Thompson, William N., 2000. "The Sources of Revenues for Wisconsin Native American Casinos: Implications for Casino Gaming as a Regional EconomicDevelopment Tool," The Review of Regional Studies, Southern Regional Science Association, vol. 30(3), pages 259-274, Winter.
    2. Richard Thalheimer & Mukhtar Ali, 2003. "The demand for casino gaming," Applied Economics, Taylor & Francis Journals, vol. 35(8), pages 907-918.

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