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

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Javier Campos & Juan Luis Jiménez & Ancor Suárez-Alemán, 2012. "“Not always sunny in paradise: prices and brand diversity in touristic areas supermarkets”," IREA Working Papers 201211, University of Barcelona, Research Institute of Applied Economics, revised May 2012.
  • Handle: RePEc:ira:wpaper:201211
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    File URL: http://www.ub.edu/irea/working_papers/2012/201211.pdf
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    More about this item

    Keywords

    tourism effects; prices; brand diversity; supermarkets; Canary Islands. JEL classification: L83; L13.;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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