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“Not always sunny in paradise: prices and brand diversity in touristic areas supermarkets”

  • Javier Campos

    ()

    (Department of Applied Economic Analysis. University of Las Palmas de Gran Canaria)

  • Juan Luis Jiménez

    ()

    (Department of Applied Economic Analysis. University of Las Palmas de Gran Canaria)

  • Ancor Suárez-Alemán

    ()

    (Department of Applied Economic Analysis. University of Las Palmas de Gran Canaria)

Using a dataset from consumption patterns in the island of Gran Canaria collected by the authors, this paper attempts to quantify some non-positive effects of tourism on local destination retail markets for goods and services. In particular, we empirically prove, controlling by factors such as population, size of supermarkets or number of competitors, two main effects: first, that supermarkets located in touristic areas charge higher prices than those in non-touristic areas; and second, that brand diversity is lower in the same stores, particularly in the case of smaller ones. These results confirm that local population do not always benefit from living in a touristic city and possibly provide a more balanced view on the positive and negative side of tourism.

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File URL: http://www.ub.edu/irea/working_papers/2012/201211.pdf
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Paper provided by University of Barcelona, Research Institute of Applied Economics in its series IREA Working Papers with number 201211.

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Length: 24 pages
Date of creation: May 2012
Date of revision: May 2012
Handle: RePEc:ira:wpaper:201211
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