IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/23009.html

Inbound Tourism Demand and Japanese Regional Productivity before the COVID-19 Pandemic: The role of tourism agglomeration and electronic payment

Author

Listed:
  • Yoshihiro KAMEYAMA

Abstract

This study utilizes prefectural panel data for the 2014-19 period to examine whether inbound demand contributes to the productivity growth of local economies. Before the COVID-19 pandemic, the destinations of inbound visitors gradually diffused to non-metropolitan regions, and a certain number of foreign visitors to Japan would visit many non-metropolitan destinations. With an increase in the number of foreign visitors to each region, IT-related factors, represented by cashless payments and reservation services through travel websites, have advanced throughout Japan. How did the agglomeration of tourism and the use of IT because of the dispersion of visitors to non-metropolitan areas of Japan affect local economies? In this study, the number of visitors to Japan is measured in terms of Tourism Market Potential (TMP), which is "the size of metropolitan and non-metropolitan (tourism) demand from foreign visitors to Japan," and is used for the agglomeration effect. TMP does not measure the gross effect in terms of the simple scale of the number of visitors to Japan but rather the net effect, which includes accessibility from the origin to the destination. We then analyze how regional TMPs and IT-related factors affect productivity and wages in the prefectures. The estimation results indicate that both TMP- and IT-related factors have a positive impact on productivity and wages in the prefectures visited.

Suggested Citation

  • Yoshihiro KAMEYAMA, 2023. "Inbound Tourism Demand and Japanese Regional Productivity before the COVID-19 Pandemic: The role of tourism agglomeration and electronic payment," Discussion papers 23009, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:23009
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/23e009.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Masayuki MORIKAWA, 2017. "Impact of Foreign Tourists on Productivity in the Accommodation Industry: A panel data analysis," Discussion papers 17106, Research Institute of Economy, Trade and Industry (RIETI).
    2. Liu, Anyu & Wu, Doris Chenguang, 2019. "Tourism productivity and economic growth," Annals of Tourism Research, Elsevier, vol. 76(C), pages 253-265.
    3. Laura Hering & Rodrigo Paillacar, 2016. "Does Access to Foreign Markets Shape Internal Migration? Evidence from Brazil," The World Bank Economic Review, World Bank, vol. 30(1), pages 78-103.
    4. Raffaele Paci & Emanuela Marrocu, 2014. "Tourism and regional growth in Europe," Papers in Regional Science, Wiley Blackwell, vol. 93, pages 25-50, November.
    5. Masayuki MORIKAWA, 2016. "Foreign Tourists and Capacity Utilization in the Accommodation Industry," Discussion papers 16064, Research Institute of Economy, Trade and Industry (RIETI).
    6. Rafael González-Val & Daniel A. Tirado-Fabregat & Elisabet Viladecans-Marsal, 2017. "Market potential and city growth: Spain 1860–1960," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(1), pages 31-61, January.
    7. Adelheid Holl, 2012. "Market potential and firm-level productivity in Spain," Journal of Economic Geography, Oxford University Press, vol. 12(6), pages 1191-1215, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Keisuke KONDO, 2019. "The Costs of Urban Agglomeration: Evidence from the Inbound Tourism Boom in Japan," Discussion papers 19106, Research Institute of Economy, Trade and Industry (RIETI).
    2. Masayuki MORIKAWA, 2018. "Effects of Distance and Borders on International and Interregional Tourist Flows: A micro-gravity analysis," Discussion papers 18021, Research Institute of Economy, Trade and Industry (RIETI).
    3. Garrod Brian & Almeida António & Machado Luiz, 2023. "Modelling of nonlinear asymmetric effects of changes in tourism on economic growth in an autonomous small-island economy," European Journal of Tourism, Hospitality and Recreation, Paradigm, vol. 13(2), pages 154-172, December.
    4. Matthias Siller & Thomas Schatzer & Janette Walde & Gottfried Tappeiner, 2021. "What drives total factor productivity growth? An examination of spillover effects," Regional Studies, Taylor & Francis Journals, vol. 55(6), pages 1129-1139, June.
    5. Patricia C Melo & Daniel J Graham & David Levinson & Sarah Aarabi, 2017. "Agglomeration, accessibility and productivity: Evidence for large metropolitan areas in the US," Urban Studies, Urban Studies Journal Limited, vol. 54(1), pages 179-195, January.
    6. Chu, Angus & Xu, Rongxin, 2026. "Tourism, takeoff and growth: A quantitative analysis of Macau," MPRA Paper 127890, University Library of Munich, Germany.
    7. Bernardina Algieri & Antonio à lvarez, 2023. "Assessing the ability of regions to attract foreign tourists: The case of Italy," Tourism Economics, , vol. 29(3), pages 788-811, May.
    8. Carmen María Llorca-Rodríguez & Rosa María García-Fernández & Jorge Chica-Olmo, 2026. "Does tourism reduce socio-economic inequality? Insights from the pandemic based on space and time models for the EU," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 43(1), pages 65-88, April.
    9. Chu, Angus C. & Liao, Chih-Hsing & Xu, Rongxin & Chen, Ping-Ho, 2024. "Dynamic effects of tourism shocks on innovation in an open-economy Schumpeterian growth model," Economic Modelling, Elsevier, vol. 131(C).
    10. Rafael González-Val & Daniel A. Tirado-Fabregat & Elisabet Viladecans-Marsal, 2017. "Market potential and city growth: Spain 1860–1960," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 11(1), pages 31-61, January.
    11. Gibbons, Stephen & Lyytikäinen, Teemu & Overman, Henry G. & Sanchis-Guarner, Rosa, 2019. "New road infrastructure: The effects on firms," Journal of Urban Economics, Elsevier, vol. 110(C), pages 35-50.
    12. Stjepan Srhoj & Vanja Vitezić & Janette Walde, 2022. "Do small public grants boost tourism firms’ performance?," Tourism Economics, , vol. 28(6), pages 1435-1452, September.
    13. Aydın Ünal & Baran Sinan Bayar, 2020. "A Research On The Local Community'S Assessments On The Festivals Organized In Their Own Destinations," Cactus - The tourism journal for research, education, culture and soul, Bucharest University of Economic Studies, vol. 2(2), pages 35-45.
    14. Federico Inchausti-Sintes, 2024. "Avoiding the Dutch Disease in tourism-led economies: reconciling tourism development and sectoral diversification," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 23(2), pages 213-239, May.
    15. Unal, Aydın & Bayar, Baran Sinan, 2020. "A Research on the Local Community's Assessments on the Festivals Organized in Their Own Destinations," CACTUS – Journal of Tourism Business, Management and Economics, ASE Publishing House, vol. 2(1), June.
    16. Elisa Panzera & Thomas de Graaff & Henri L.F. de Groot, 2021. "European cultural heritage and tourism flows: The magnetic role of superstar World Heritage Sites," Papers in Regional Science, Wiley Blackwell, vol. 100(1), pages 101-122, February.
    17. Changyao Song & Yijun Liu & Xinjian Li & Jiayi Zhang & Qier Lyu, 2024. "Tourism development and urban housing prices: Evidence from China," Tourism Economics, , vol. 30(5), pages 1115-1139, August.
    18. David Boto‐García & Antonio Alvarez & José Baños, 2021. "Modelling heterogeneous preferences for nature‐based tourism trips," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1625-1653, December.
    19. Rafael González‐Val, 2019. "Historical urban growth in Europe (1300–1800)," Papers in Regional Science, Wiley Blackwell, vol. 98(2), pages 1115-1136, April.
    20. Julio Martinez-Galarraga & Daniel A. Tirado & Rafael González-Val, 2015. "Market potential and regional economic growth in Spain (1860–1930)," European Review of Economic History, European Historical Economics Society, vol. 19(4), pages 335-358.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:23009. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.