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Testing the Empirical Link between Tourism and Competitiveness: Evidence from Puerto Rico

Author

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  • Robertico Croes

    (Rosen College of Hospitality Management, University of Central Florida, 9907 Universal Boulevard, Orlando, FL 32819-8701, USA)

  • Manuel Antonio Rivera

    (International School of Tourism and Hospitality Management, Universidad del Este, Puerto Rico)

Abstract

This study examines the empirical relationship between tourism and the competitiveness of a destination. It uses the cointegration and error correction model (ECM) in a bivariate context as a precondition to apply the Granger causality test. This procedure was carried out in the case of Puerto Rico's tourism industry during 1960–2004. The study found cointegration in the intertemporal rather than the contemporaneous effects, as well as a one-directional causality running from changes in tourism spending to changes in competitiveness. This result highlights the long-run equilibrium spending behaviour of tourists as a major concern of destination managers.

Suggested Citation

  • Robertico Croes & Manuel Antonio Rivera, 2010. "Testing the Empirical Link between Tourism and Competitiveness: Evidence from Puerto Rico," Tourism Economics, , vol. 16(1), pages 217-234, March.
    • Handle: RePEc:sae:toueco:v:16:y:2010:i:1:p:217-234
    DOI: 10.5367/000000010790872114
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    References listed on IDEAS

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    Cited by:

    1. Alicia Fourie & Chris van Heerden & Engelina du Plessis, 2022. "Improving destination competitiveness in South Africa: A DEA approach," Tourism Economics, , vol. 28(4), pages 1080-1100, June.
    2. Jacky S. Charles & Thomas M. Fullerton Jr, 2012. "Research Note: An Error Correction Analysis of Visitor Arrivals in the Bahamas," Tourism Economics, , vol. 18(1), pages 253-259, February.
    3. Kubickova Marketa, 2016. "The Role of Government in Tourism: Linking Competitiveness, Freedom, and Developing Economies," Czech Journal of Tourism, Sciendo, vol. 5(2), pages 73-92, December.
    4. Paulo H A Feitosa & Amanda B A Silva, 2022. "Length of stay and satisfaction shaping the competitiveness of international business tourism in São Paulo city, Brazil," Tourism Economics, , vol. 28(3), pages 728-747, May.
    5. Charles, Jacky S. & Fullerton, Thomas M., Jr., 2012. "An Error Correction Analysis of Visitor Arrivals to the Bahamas," MPRA Paper 43064, University Library of Munich, Germany.
    6. Jorge Ridderstaat & Robertico Croes & Peter Nijkamp, 2013. "Modelling Tourism Development and Long-run Economic Growth in Aruba," Tinbergen Institute Discussion Papers 13-145/VIII, Tinbergen Institute.
    7. Kristen Corrie & Natalie Stoeckl & Taha Chaiechi, 2013. "Tourism and Economic Growth in Australia: An Empirical Investigation of Causal Links," Tourism Economics, , vol. 19(6), pages 1317-1344, December.
    8. Mohd Hafiz Hanafiah & Mohamad Abdullah Hemdi & Ismail Ahmad, 2016. "Tourism destination competitiveness," Tourism Economics, , vol. 22(3), pages 629-636, June.
    9. Fabio Mazzola & Pietro Pizzuto & Giovanni Ruggieri, 2022. "Tourism and territorial growth determinants in insular regions: A comparison with mainland regions for some European countries (2008–2019)," Papers in Regional Science, Wiley Blackwell, vol. 101(6), pages 1331-1382, December.

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