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Touristification and retail diversity: theory and evidence

Author

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  • Ka Shing Cheung

    (The University of Auckland Business School)

  • Chung Yim Yiu

    (The University of Auckland Business School)

Abstract

This study explores the impact of touristification on retail diversity in neighbourhoods, presenting a species-area relationship model to demonstrate how tourism-driven changes can negatively affect local residents by displacing unique local retailers. Empirical regression analysis, using differences-in-difference (DID) models and neighbourhood clustering to define retail areas in Hong Kong, found that tourist-concentrated areas have fewer diverse high-street retailers. The result argues that the trend of touristification, which often leads to a decrease in retail diversity, could undermine the resilience of a tourism destination. This is evidenced by the noticeable downturn in the retail industry seen in many previously over-touristed cities after the pandemic. The findings prompt further research into tourism’s role in changing retail landscapes, particularly in touristified neighbourhoods.

Suggested Citation

  • Ka Shing Cheung & Chung Yim Yiu, 2024. "Touristification and retail diversity: theory and evidence," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03805-9
    DOI: 10.1057/s41599-024-03805-9
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    References listed on IDEAS

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    1. Hassan F. Gholipour & Reza Tajaddini & Amir E. Andargoli, 2021. "The long run and short run impact of international tourists’ retail shopping on domestic retail sale," Current Issues in Tourism, Taylor & Francis Journals, vol. 24(3), pages 297-303, February.
    2. Irene Gómez-Varo & Xavier Delclòs-Alió & Carme Miralles-Guasch & Oriol Marquet, 2024. "Unravelling retail diversity through its spatial relationship with social vulnerability and tourism pressures in Barcelona," Journal of Urban Design, Taylor & Francis Journals, vol. 29(3), pages 280-300, May.
    3. José Francisco Perles-Ribes & Ana Belén Ramón-Rodríguez & Martín Sevilla-Jiménez & Luis Moreno-Izquierdo, 2018. "Differences in the economic performance of hotel-based and residential tourist destinations measured by their retail activity. Evidence from Spain," Current Issues in Tourism, Taylor & Francis Journals, vol. 21(18), pages 2076-2107, December.
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