IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v85y2016icp174-185.html
   My bibliography  Save this article

High speed rail and tourism: Empirical evidence from Spain

Author

Listed:
  • Albalate, Daniel
  • Fageda, Xavier

Abstract

This paper evaluates how changes in the provision of high-speed rail (HSR) services affect tourism outcomes in Spain, a tourist country with the newest and longest HSR network in Europe. To do so it employs an empirical strategy based on the differences-in-differences panel data method with double fixed effects. Data are provided by Spain’s National Statistics Institute (INE) and cover 50 provinces over a 15-year time span (1998–2013). Our results provide mixed evidence about the impact of HSR accessibility on tourist outcomes. On the one hand, we find that air traffic is negatively affected by HSR and air traffic is a strong predictor of tourist arrivals. This suggests a negative indirect effect of HSR on tourist outcomes. On the other hand, HSR may have a positive (weak) direct effect on tourism. However, such result is conditioned on the measure of HSR accessibility and econometric technique used. Thus, the net effect of HSR on tourism outcomes is not consistently positive. This pattern might be attributed to a network design that does not respond to ridership needs and which has a substitution effect on air transportation, the main mode for long-distance tourist mobility.

Suggested Citation

  • Albalate, Daniel & Fageda, Xavier, 2016. "High speed rail and tourism: Empirical evidence from Spain," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 174-185.
    • Handle: RePEc:eee:transa:v:85:y:2016:i:c:p:174-185
    DOI: 10.1016/j.tra.2016.01.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856416000094
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2016.01.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Albalate, Daniel & Bel, Germà, 2010. "Tourism and urban public transport: Holding demand pressure under supply constraints," Tourism Management, Elsevier, vol. 31(3), pages 425-433.
    2. Albalate, Daniel & Bel, Germà & Fageda, Xavier, 2015. "When supply travels far beyond demand: Causes of oversupply in Spain's transport infrastructure," Transport Policy, Elsevier, vol. 41(C), pages 80-89.
    3. Cascetta, Ennio & Papola, Andrea & Pagliara, Francesca & Marzano, Vittorio, 2011. "Analysis of mobility impacts of the high speed Rome–Naples rail link using withinday dynamic mode service choice models," Journal of Transport Geography, Elsevier, vol. 19(4), pages 635-643.
    4. Taniguchi, Mamoru, 1992. "High Speed Rail in Japan: A Review and Evaluation of the Shinkansen Train," University of California Transportation Center, Working Papers qt5s48m11f, University of California Transportation Center.
    5. Román, Concepción & Espino, Raquel & Martín, Juan Carlos, 2007. "Competition of high-speed train with air transport: The case of Madrid–Barcelona," Journal of Air Transport Management, Elsevier, vol. 13(5), pages 277-284.
    6. John Preston, 2013. "The Economics of Investment in High-Speed Rail: Summary and Conclusions," International Transport Forum Discussion Papers 2013/30, OECD Publishing.
    7. Dobruszkes, Frédéric & Dehon, Catherine & Givoni, Moshe, 2014. "Does European high-speed rail affect the current level of air services? An EU-wide analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 461-475.
    8. Cheng, Yung-Hsiang, 2010. "High-speed rail in Taiwan: New experience and issues for future development," Transport Policy, Elsevier, vol. 17(2), pages 51-63, March.
    9. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," ULB Institutional Repository 2013/142613, ULB -- Universite Libre de Bruxelles.
    10. Pablo Coto-Millán & Vicente Inglada & Belén Rey, 2007. "Effects of network economies in high-speed rail: the Spanish case," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(4), pages 911-925, December.
    11. Jianhong Wu, 2013. "The Financial and Economic Assessment of China's High Speed Rail Investments: A Preliminary Analysis," International Transport Forum Discussion Papers 2013/28, OECD Publishing.
    12. Zhenhua Chen & Kingsley E. Haynes, 2015. "Impact of high-speed rail on international tourism demand in China," Applied Economics Letters, Taylor & Francis Journals, vol. 22(1), pages 57-60, January.
    13. Zhang, Qiong & Yang, Hangjun & Wang, Qiang & Zhang, Anming, 2014. "Market power and its determinants in the Chinese airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 64(C), pages 1-13.
    14. Sebastian Galiani & Paul Gertler & Ernesto Schargrodsky, 2005. "Water for Life: The Impact of the Privatization of Water Services on Child Mortality," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 83-120, February.
    15. Chung, Jin Young & Whang, Taehee, 2011. "The impact of low cost carriers on Korean Island tourism," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1335-1340.
    16. Roger Vickerman, 1997. "High-speed rail in Europe: experience and issues for future development," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 31(1), pages 21-38.
    17. Rey, Belén & Myro, Rafael L. & Galera, Asun, 2011. "Effect of low-cost airlines on tourism in Spain. A dynamic panel data model," Journal of Air Transport Management, Elsevier, vol. 17(3), pages 163-167.
    18. Alegre, Joaquín & Mateo, Sara & Pou, Llorenç, 2013. "Tourism participation and expenditure by Spanish households: The effects of the economic crisis and unemployment," Tourism Management, Elsevier, vol. 39(C), pages 37-49.
    19. Dobruszkes, Frédéric & Mondou, Véronique, 2013. "Aviation liberalization as a means to promote international tourism: The EU–Morocco case," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 23-34.
    20. Guizzardi, Andrea & Mazzocchi, Mario, 2010. "Tourism demand for Italy and the business cycle," Tourism Management, Elsevier, vol. 31(3), pages 367-377.
    21. Givoni, Moshe & Banister, David, 2006. "Airline and railway integration," Transport Policy, Elsevier, vol. 13(5), pages 386-397, September.
    22. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    23. Sophie Masson & Romain Petiot, 2009. "Can the high speed rail reinforce tourism attractiveness ? The case of the hagh speed rail between Perpignan (france) and Barcelona (Spain)," Post-Print hal-03062650, HAL.
    24. Donzelli, Matteo, 2010. "The effect of low-cost air transportation on the local economy: Evidence from Southern Italy," Journal of Air Transport Management, Elsevier, vol. 16(3), pages 121-126.
    25. Frédéric Dobruszkes & Véronique Mondou, 2013. "Aviation liberalization as a means to promote international tourism: the EU–Morocco case," ULB Institutional Repository 2013/145790, ULB -- Universite Libre de Bruxelles.
    26. Bieger, Thomas & Wittmer, Andreas, 2006. "Air transport and tourism—Perspectives and challenges for destinations, airlines and governments," Journal of Air Transport Management, Elsevier, vol. 12(1), pages 40-46.
    27. Pagliara, Francesca & La Pietra, Andrea & Gomez, Juan & Manuel Vassallo, José, 2015. "High Speed Rail and the tourism market: Evidence from the Madrid case study," Transport Policy, Elsevier, vol. 37(C), pages 187-194.
    28. Germà Bel, 2011. "Infrastructure and nation building: The regulation and financing of network transportation infrastructures in Spain (1720--2010)," Business History, Taylor & Francis Journals, vol. 53(5), pages 688-705, August.
    29. Dobruszkes, Frédéric, 2011. "High-speed rail and air transport competition in Western Europe: A supply-oriented perspective," Transport Policy, Elsevier, vol. 18(6), pages 870-879, November.
    30. Xiaowen Fu & Tae H. Oum & Jia Yan, 2014. "An Analysis of Travel Demand in Japan's Intercity Market Empirical Estimation and Policy Simulation," Journal of Transport Economics and Policy, University of Bath, vol. 48(1), pages 97-113, January.
    31. Kappes, Jan Willem & Merkert, Rico, 2013. "Barriers to entry into European aviation markets revisited: A review and analysis of managerial perceptions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 57(C), pages 58-69.
    32. Sophie Masson & Romain Petiot, 2009. "Can the High Speed Rail reinforce tourism attractiveness? The case of the High Speed Railway section between Perpignan (France) and Barcelona (Spain)," Post-Print hal-02422659, HAL.
    33. Preston, John, 2012. "High Speed Rail in Britain: about time or a waste of time?," Journal of Transport Geography, Elsevier, vol. 22(C), pages 308-311.
    34. Marie Delaplace, 2012. "TGV, développement local et taille des villes : Une analyse en termes d'innovation de services," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 265-290.
    35. Vicente Inglada & GinÊs de Rus, 1997. "Cost-benefit analysis of the high-speed train in Spain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 31(2), pages 175-188.
    36. Juan Martín & Gustavo Nombela, 2007. "Microeconomic impacts of investments in high speed trains in Spain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(3), pages 715-733, September.
    37. Fu, Xiaowen & Zhang, Anming & Lei, Zheng, 2012. "Will China’s airline industry survive the entry of high-speed rail?," Research in Transportation Economics, Elsevier, vol. 35(1), pages 13-25.
    38. Frédéric Dobruszkes, 2011. "High-speed rail and air transport competition in Western Europe: A supply-oriented perspective," ULB Institutional Repository 2013/96164, ULB -- Universite Libre de Bruxelles.
    39. Delaplace, Marie, 2012. "TGV, développement local et taille des villes : Une analyse en termes d’innovation de services," Revue d'économie régionale et urbaine, Editions NecPlus, vol. 2012(02), pages 265-290, December.
    40. Behrens, Christiaan & Pels, Eric, 2012. "Intermodal competition in the London–Paris passenger market: High-Speed Rail and air transport," Journal of Urban Economics, Elsevier, vol. 71(3), pages 278-288.
    41. Rietveld, P. & Bruinsma, F.R. & Delft, H.T. van, 2001. "Economic impacts of high speed trains. Experiences in Japan and France: expectations in the Netherlands," Serie Research Memoranda 0020, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Albalate del sol, 2015. "Evaluating HSR availability on Tourism: Evidence from Spanish Provinces and Cities," ERSA conference papers ersa15p288, European Regional Science Association.
    2. Daniel Albalate & Javier Campos & Juan Luis Jiménez, 2015. "“Tourism and high speed rail in Spain: Does the AVE increase local visitors?”," IREA Working Papers 201527, University of Barcelona, Research Institute of Applied Economics, revised Dec 2015.
    3. Daniel Albalate & Germá Bel, 2015. "La experiencia internacional en alta velocidad ferroviaria," Working Papers 2015-02, FEDEA.
    4. Dobruszkes, Frédéric & Dehon, Catherine & Givoni, Moshe, 2014. "Does European high-speed rail affect the current level of air services? An EU-wide analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 461-475.
    5. Albalate, Daniel & Bel, Germà & Fageda, Xavier, 2015. "Competition and cooperation between high-speed rail and air transportation services in Europe," Journal of Transport Geography, Elsevier, vol. 42(C), pages 166-174.
    6. Zhang, Anming & Wan, Yulai & Yang, Hangjun, 2019. "Impacts of high-speed rail on airlines, airports and regional economies: A survey of recent research," Transport Policy, Elsevier, vol. 81(C), pages 1-19.
    7. Ren, Xiaohang & Zeng, Gudian & Dong, Kangyin & Wang, Kun, 2023. "How does high-speed rail affect tourism development? The case of the Sichuan-Chongqing Economic Circle," Transportation Research Part A: Policy and Practice, Elsevier, vol. 169(C).
    8. Chen, Zhenhua, 2023. "Socioeconomic Impacts of high-speed rail: A bibliometric analysis," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    9. Asep Yayat Nurhidayat & Hera Widyastuti & Sutikno & Dwi Phalita Upahita, 2023. "Research on Passengers’ Preferences and Impact of High-Speed Rail on Air Transport Demand," Sustainability, MDPI, vol. 15(4), pages 1-26, February.
    10. Wan, Yulai & Ha, Hun-Koo & Yoshida, Yuichiro & Zhang, Anming, 2016. "Airlines’ reaction to high-speed rail entries: Empirical study of the Northeast Asian market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 94(C), pages 532-557.
    11. Borsati, Mattia & Albalate, Daniel, 2020. "On the modal shift from motorway to high-speed rail: evidence from Italy," Transportation Research Part A: Policy and Practice, Elsevier, vol. 137(C), pages 145-164.
    12. Campa, Juan Luis & López-Lambas, María Eugenia & Guirao, Begoña, 2016. "High speed rail effects on tourism: Spanish empirical evidence derived from China's modelling experience," Journal of Transport Geography, Elsevier, vol. 57(C), pages 44-54.
    13. Pagliara, Francesca & La Pietra, Andrea & Gomez, Juan & Manuel Vassallo, José, 2015. "High Speed Rail and the tourism market: Evidence from the Madrid case study," Transport Policy, Elsevier, vol. 37(C), pages 187-194.
    14. Chen, Zhenhua, 2017. "Impacts of high-speed rail on domestic air transportation in China," Journal of Transport Geography, Elsevier, vol. 62(C), pages 184-196.
    15. Bergantino, Angela S. & Capozza, Claudia & Capurso, Mauro, 2015. "The impact of open access on intra- and inter-modal rail competition. A national level analysis in Italy," Transport Policy, Elsevier, vol. 39(C), pages 77-86.
    16. Castillo-Manzano, José I. & Pozo-Barajas, Rafael & Trapero, Juan R., 2015. "Measuring the substitution effects between High Speed Rail and air transport in Spain," Journal of Transport Geography, Elsevier, vol. 43(C), pages 59-65.
    17. Xinshuo Hou, 2019. "High-Speed Railway and City Tourism in China: A Quasi-Experimental Study on HSR Operation," Sustainability, MDPI, vol. 11(6), pages 1-19, March.
    18. Zhang, Qiong & Yang, Hangjun & Wang, Qiang, 2017. "Impact of high-speed rail on China’s Big Three airlines," Transportation Research Part A: Policy and Practice, Elsevier, vol. 98(C), pages 77-85.
    19. Bergantino, Angela S. & Capozza, Claudia & Capurso, Mauro, 2015. "The impact of open access on intra- and inter-modal rail competition. A national level analysis in Italy," Transport Policy, Elsevier, vol. 39(C), pages 77-86.
    20. Bernardo, Valeria & Fageda, Xavier, 2017. "The effects of the Morocco-European Union open skies agreement: A difference-in-differences analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 24-41.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:85:y:2016:i:c:p:174-185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.