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An Analysis of the Evolution of Tourism Destinations from the Point of View of the Economic Growth Theory


  • Javier Lozano

    (University of the Balearic Islands)

  • Javier Rey-Maquieira

    (University of the Balearic Islands, IMEDEA-UIB of CSIC)


In this paper we try to build a bridge between the traditional analysis of the evolution of tourism destinations and economic growth theory. With such an aim we develop an environmental growth model for an economy specialized in tourism and we derive the pattern of tourism development with numerical calculations. The results of our simulations do not contradict the general pattern of evolution implied in the Tourism Area Life Cycle Hypothesis, being environmental deterioration and public goods congestion the main reasons for the stagnation of the tourism destination. We also show the importance of the quality of private tourism services in the evolution of the tourism destination.

Suggested Citation

  • Javier Lozano & Javier Rey-Maquieira, 2005. "An Analysis of the Evolution of Tourism Destinations from the Point of View of the Economic Growth Theory," Working Papers 2005.146, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2005.146

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    References listed on IDEAS

    1. Michael McAleer & Riaz Shareef & Bernardo da Veiga, 2005. "Risk Management of Daily Tourist Tax Revenues for the Maldives," Working Papers 2005.137, Fondazione Eni Enrico Mattei.
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    Cited by:

    1. R. Brau & D. Cao, 2005. "Uncovering the macrostructure of tourists' preferences. A choice experiment analysis of tourism demand to Sardinia," Working Paper CRENoS 200514, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    2. Brau, Rinaldo, 2008. "Demand-driven sustainable tourism? A choice modelling analysis," MPRA Paper 82773, University Library of Munich, Germany.

    More about this item


    Tourism; Economic growth; Tourism lifcycle;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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