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Diversifying visitor demand and its impact on Las Vegas's tourism industry during recovery from the Great Recession

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  • Younghyun Kwon
  • Jaewon Lim
  • Euijune Kim

Abstract

This paper analyses the transitionary economic impact of the post‐recession recovery on the tourism industry in Las Vegas. The signs of early recovery in this study are measured by the increasing household income in Southern California (SCA), the most important origin of visitors to Las Vegas. To estimate the multiplier effects of the Las Vegas tourism industry into its neighbouring regions, we employed a “social accounting matrix” within a multi‐regional input–output model. Our test reveals that intra‐industry diversification of the tourism industry in Las Vegas is driven by the changing visitor demand of middle‐income classes from SCA. Through the multiplier effects of Las Vegas's tourism industry, Northern California gets the largest ripple effects, followed by Southern California. Findings from this study contribute to further develop effective strategies for ongoing diversification efforts of Las Vegas's tourism industry. Proposed approaches are also applicable to identify the major source of changing demand for tourism activities and to estimate the potential effects through interregional industry linkages. Este artículo analiza el impacto económico de transición de la recuperación posterior a la recesión en la industria del turismo en Las Vegas. Las señales de recuperación temprana se miden en este estudio por el aumento de los ingresos familiares en el sur de California (SCA), que es el origen más importante de los visitantes a Las Vegas. Para estimar los efectos multiplicadores de la industria turística de Las Vegas en sus regiones vecinas, se empleó una “matriz de contabilidad social” dentro de un modelo multirregional input‐output. Esta prueba revela que la diversificación interna dentro de la industria del turismo en Las Vegas es impulsada por la demanda cambiante de los visitantes de clases de renta media del SCA. A través de los efectos multiplicadores de la industria turística de Las Vegas, el norte de California obtiene el mayor efecto dominó, seguido por el sur de California. Los resultados de este estudio contribuyen a desarrollar estrategias efectivas para los esfuerzos actuales de diversificación de la industria turística de Las Vegas. Los enfoques propuestos también son aplicables para identificar la principal fuente de cambio en la demanda de actividades turísticas y para estimar los efectos potenciales mediante los vínculos interregionales de la industria. 本稿では、世界金融危機後のラスベガスにおける観光業の回復による経済的影響の推移を分析する。今回の分析では、回復の初期の兆候を、ラスベガス訪問者の最大の起点である南カリフォルニア (SCA)における増加する世帯収入で測定する。本稿では、多地域間産業連関モデルに「社会会計行列 (social accounting matrix)」を組み込み、周辺地域に浸透するラスベガスの観光業の乗数効果を推計する。結果から、ラスベガスの観光業の産業間多角化は、SCAの中所得者層の需要の変化に促進されていることが明らかになった。ラスベガスの観光業の乗数効果を通じて、北カリフォルニアが最大の波及効果を受けており、これに南カリフォルニアが次いでいる。本研究の知見は、ラスベガスの観光業の多角化効果の発生を継続させる効果的な方策の開発に貢献するものである。提示したアプローチは、観光業の活動に対する需要の変化の主な原因の特定、さらに地域間の産業連関を通じて発生する潜在効果の推計にも適用することができる。

Suggested Citation

  • Younghyun Kwon & Jaewon Lim & Euijune Kim, 2020. "Diversifying visitor demand and its impact on Las Vegas's tourism industry during recovery from the Great Recession," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(2), pages 249-266, April.
  • Handle: RePEc:bla:rgscpp:v:12:y:2020:i:2:p:249-266
    DOI: 10.1111/rsp3.12216
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    2. Hassan F Gholipour & Robin Nunkoo & Behzad Foroughi & Hassan Kalantari Daronkola, 2022. "Economic policy uncertainty, consumer confidence in major economies and outbound tourism to African countries," Tourism Economics, , vol. 28(4), pages 979-994, June.

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