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On the Economic Rationality of Fluctuations in Tourist Frequentation at Nature-Based Destinations: The Case of Corsican Seaside Hotels

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  • Sauveur Giannoni

    (UMR CNRS LISA 6240, University of Corsica, Avenue Jean Nicoli, Campus Mariani, 20250 Corte, Corse, France)

Abstract

This paper answers a simple question: are fluctuations, and especially temporary slowdowns or decline, in frequentation always harmful for a tourist destination? The author proposes a simple theoretical model for a nature-based destination, in which a tourist's willingness to pay (WTP) depends on the environmental quality of the place. He hypothesizes that, at some points in time, there is a rational economic incentive to experience a temporary decrease in frequentation in order to allow the stock of natural assets to regenerate. The author uses a sample of 80 seaside hotels in Corsica to show that tourists' WTP for a night stay depends positively on environmental quality. The results indicate that a deterioration of the environmental quality of the destination would reduce the WTP for a night stay in Corsica by more than 25%. This finding tends to confirm the paper's initial hypothesis since, if the environmental quality of Corsica falls, rational hotel owners should ask for a limited and temporary slowdown in frequentation so that the environmental quality and the WTP can regain a higher and more profitable level.

Suggested Citation

  • Sauveur Giannoni, 2012. "On the Economic Rationality of Fluctuations in Tourist Frequentation at Nature-Based Destinations: The Case of Corsican Seaside Hotels," Tourism Economics, , vol. 18(3), pages 495-503, June.
    • Handle: RePEc:sae:toueco:v:18:y:2012:i:3:p:495-503
    DOI: 10.5367/te.2012.0124
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    1. Kort, P.M. & Greiner, A. & Feichtinger, G. & Haunschmied, J.L. & Hartl, R.F. & Novak, A.J., 2002. "Environmental effects of tourism industry investments : An intertemporal trade-off," Other publications TiSEM dc61bc25-6bc7-4093-97dd-8, Tilburg University, School of Economics and Management.
    2. Abrate, Graziano & Capriello, Antonella & Fraquelli, Giovanni, 2011. "When quality signals talk: Evidence from the Turin hotel industry," Tourism Management, Elsevier, vol. 32(4), pages 912-921.
    3. Greiner, Alfred & Feichtinger, Gustav & Haunschmied, Josef L. & Kort, Peter M. & Hartl, Richard F., 2001. "Optimal periodic development of a pollution generating tourism industry," European Journal of Operational Research, Elsevier, vol. 134(3), pages 582-591, November.
    4. Fabio Cerina, 2007. "Tourism Specialization and Environmental Sustainability in a Dynamic Economy," Tourism Economics, , vol. 13(4), pages 553-582, December.
    5. Ching-Fu Chen & R. Rothschild, 2010. "An Application of Hedonic Pricing Analysis to the Case of Hotel Rooms in Taipei," Tourism Economics, , vol. 16(3), pages 685-694, September.
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