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The Effects On Environmental Investment Of Changes In Tourism Demand

Author

Listed:
  • Accinelli, Elvio
  • Brida, Juan Gabriel
  • Carrera, Edgar
  • Pereyra, Juan

Abstract

In this short paper we analyze the impact of tourist demand in hotel rooms on the investment of hotels on environmental quality. We show that when income of the tourists increases, then to maintain the demand for rooms, the hotels must in-crease the investment on the environmental quality of the region where there is an increment of the tourist activity. In the particular case where we have three differ-ent hotel chains located in three different tourist regions, we show that the incen-tive of hotel chains to invest in environmental quality depends on the demand for days of rest on the part of tourists and on the level of aggregate income. We also show that if total income increase, then the incentive to invest in environmental quality increases in the region where the price of a hotel room is lower.

Suggested Citation

  • Accinelli, Elvio & Brida, Juan Gabriel & Carrera, Edgar & Pereyra, Juan, 2007. "The Effects On Environmental Investment Of Changes In Tourism Demand," MPRA Paper 6372, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:6372
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    File URL: https://mpra.ub.uni-muenchen.de/6372/1/MPRA_paper_6372.pdf
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    References listed on IDEAS

    as
    1. Aleix Calveras, 2003. "Incentives of International and Local Hotel Chains to Invest in Environmental Quality," Tourism Economics, , vol. 9(3), pages 297-306, September.
    2. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Malgorzata Ogonowska & Dominique Torre, 2012. "Sustainable Tourism and the emergence of new Environmental Norms," Post-Print halshs-00726127, HAL.
    2. Malgorzata Ogonowska & Dominique Torre, 2014. "Towards a Sustainable Tourism," GREDEG Working Papers 2014-45, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    3. Malgorzata Ogonowska & Dominique Torre, 2013. "Residents' Influence on the Adoption of Environmental Norms in Tourism," GREDEG Working Papers 2013-17, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Malgorzata Ogonowska, 2011. "Sustainable Tourism Products Distribution: Optimal Pricing and Branding Strategies," Post-Print halshs-01219448, HAL.
    5. Brida, Juan Gabriel & Pereyra, Juan S., 2008. "Tourism Taxation and Environmental Quality in a Model with Vertical Differentiation," MPRA Paper 25305, University Library of Munich, Germany, revised 19 Dec 2008.

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    More about this item

    Keywords

    environmental investment; hotelling competition; service quality; sustainable tourism;
    All these keywords.

    JEL classification:

    • M0 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General
    • D0 - Microeconomics - - General
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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