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Specialisation versus diversification: A simple model for tourist cities

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  • Sheng, Li

Abstract

By developing a simple general equilibrium structure, this paper compares the welfare effects of tourism specialisation and economic diversification in tourist cities. We discovered that tourist cities with limited carrying capacity easily suffer from side effects, particularly Dutch disease, when faced with rapid tourism growth. Therefore, such cities should actively use revenue that is generated from the booming tourism sector to pursue economic diversification for the sake of sustainable urban development.

Suggested Citation

  • Sheng, Li, 2011. "Specialisation versus diversification: A simple model for tourist cities," Tourism Management, Elsevier, vol. 32(5), pages 1229-1231.
    • Handle: RePEc:eee:touman:v:32:y:2011:i:5:p:1229-1231
    DOI: 10.1016/j.tourman.2010.09.012
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    References listed on IDEAS

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    1. repec:bla:econom:v:58:y:1991:i:232:p:515-29 is not listed on IDEAS
    2. Sheng, Li, 2010. "Competing or cooperating to host mega events: A simple model," Economic Modelling, Elsevier, vol. 27(1), pages 375-379, January.
    3. van Wijnbergen, Sweder J G, 1984. "The 'Dutch Disease': A Disease after All?," Economic Journal, Royal Economic Society, vol. 94(373), pages 41-55, March.
    4. Corden, W Max & Neary, J Peter, 1982. "Booming Sector and De-Industrialisation in a Small Open Economy," Economic Journal, Royal Economic Society, vol. 92(368), pages 825-848, December.
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    6. Corden, W M, 1984. "Booming Sector and Dutch Disease Economics: Survey and Consolidation," Oxford Economic Papers, Oxford University Press, vol. 36(3), pages 359-380, November.
    7. Allan Webster, 1993. "Comparative Advantage and Long‐Run Dutch Disease Effects: the International Trade of Trinidad and Tobago," Development Policy Review, Overseas Development Institute, vol. 11(2), pages 153-166, June.
    8. repec:bla:devpol:v:26:y:2008:i:1:p:59-77 is not listed on IDEAS
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    Cited by:

    1. Bianca Biagi & Maria Giovanna Brandano & Steven B. Caudill, 2016. "Tourism and house prices in Italy," Tourism Economics, , vol. 22(5), pages 964-978, October.
    2. Mulan Ma & Weishu Zhao & Guanxu Wan & Taotao Deng & Yi Yang, 2023. "Specialization versus diversity: The role of city size in tourist cities," Tourism Economics, , vol. 29(8), pages 2081-2102, December.
    3. Bahman Huseynli, 2024. "The Effect of Tourism Revenues and Inflation on Economic Growth in Balkan Countries," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 1, pages 150-165.
    4. Adi Weidenfeld, 2018. "Tourism Diversification and Its Implications for Smart Specialisation," Sustainability, MDPI, vol. 10(2), pages 1-24, January.
    5. Luiz Carlos De Santana Ribeiro & Thiago Henrique Carneiro Rios Lopes & Rosa Lívia Gonçalves Montenegro & José Roberto De Lima Andrade, 2018. "Employment dynamics in the Brazilian tourism sector (2006–2015)," Tourism Economics, , vol. 24(4), pages 418-433, June.
    6. Hernández, Juan M. & Suárez-Vega, Rafael & Santana-Jiménez, Yolanda, 2016. "The inter-relationship between rural and mass tourism: The case of Catalonia, Spain," Tourism Management, Elsevier, vol. 54(C), pages 43-57.

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