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Economics of tourism & growth for small island countries

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  • Stauvermann, Peter Josef
  • Kumar, Ronald Ravinesh

Abstract

We theoretically analyze the impact of changes in foreign income from tourism source countries on the growth of tourism dependent small island economies. Using a general theoretical construct, we attempt to answer the question of how price elasticity of demand, income elasticity of tourist and the degree of competition in the service sector influence the economic development of small economies. One of the main results is that politicians may consider applying policies which lead to a competitive environment in the service sector to maximize growth and the consequent labor income share.

Suggested Citation

  • Stauvermann, Peter Josef & Kumar, Ronald Ravinesh, 2016. "Economics of tourism & growth for small island countries," Tourism Management, Elsevier, vol. 55(C), pages 272-275.
    • Handle: RePEc:eee:touman:v:55:y:2016:i:c:p:272-275
    DOI: 10.1016/j.tourman.2016.02.020
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    References listed on IDEAS

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    Cited by:

    1. Ronald Ravinesh Kumar & Peter Josef Stauvermann, 2023. "Tourism and economic growth in the Pacific region: evidence from five small island economies," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 28(3), pages 894-921, July.
    2. Antoine Belgodere & Sauveur Giannoni & Sandrine Noblet, 2022. "Are good institutions required to import economic growth? The case of tourism," Tourism Economics, , vol. 28(7), pages 1943-1955, November.
    3. Florian Kapmeier & Paulo Gonçalves, 2018. "Wasted paradise? Policies for Small Island States to manage tourism‐driven growth while controlling waste generation: the case of the Maldives," System Dynamics Review, System Dynamics Society, vol. 34(1-2), pages 172-221, January.
    4. Stauvermann, Peter Josef & Kumar, Ronald Ravinesh, 2017. "Productivity growth and income in the tourism sector: Role of tourism demand and human capital investment," Tourism Management, Elsevier, vol. 61(C), pages 426-433.
    5. Laurent Botti & Sylvain Petit & Linjia Zhang, 2020. "Strategic decision concerning tourist origins portfolio: A decision process based on the ELECTRE method and applied to French Polynesia," Tourism Economics, , vol. 26(5), pages 830-843, August.

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