IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v18y2012i6p1251-1272.html
   My bibliography  Save this article

Measuring the Effect of Subsidization on Tourism Demand and Destination Competitiveness through the AIDS Model: An Evidence-Based Approach to Tourism Policymaking

Author

Listed:
  • Marie-Louise Mangion

    (Valletta, Malta)

  • Chris Cooper

    (Faculty of Business, Oxford Brookes University, Wheatley Campus, Wheatley, Oxford OX33 1HX, UK)

  • Isabel Cortés-Jimenez

    (National Research Institute of Science and Technology for Environment and Agriculture (IRSTEA), Domaine universitaire, 2 rue de la Papeterie, F-38402 Saint-Martin-d'Hères Cedex, France, and Research Quantitative Analysis (AQR-IREA), Universitat de Barcelona, Spain)

  • Ramesh Durbarry

    (UOM Trust Business School, Reduit, Mauritius)

Abstract

There is increasing recognition of the need for improved policymaking in tourism and the consequent evaluation of tourism public policies. This paper demonstrates the usefulness of econometric modelling for tourism policy analysis, showing that crucial information is generated from such econometric policy analysis. A dynamic Almost Ideal Demand System (AIDS) model is used to quantify the impact on demand elasticity of Malta's policy of supporting British inclusive tour holidays. Such analysis can contribute to improved policymaking as the policymaker is informed about how and to what extent the market has responded to previous policies – thus promoting an evidence-based approach to tourism policymaking.

Suggested Citation

  • Marie-Louise Mangion & Chris Cooper & Isabel Cortés-Jimenez & Ramesh Durbarry, 2012. "Measuring the Effect of Subsidization on Tourism Demand and Destination Competitiveness through the AIDS Model: An Evidence-Based Approach to Tourism Policymaking," Tourism Economics, , vol. 18(6), pages 1251-1272, December.
    • Handle: RePEc:sae:toueco:v:18:y:2012:i:6:p:1251-1272
    DOI: 10.5367/te.2012.0167
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5367/te.2012.0167
    Download Restriction: no
    File URL: https://libkey.io/10.5367/te.2012.0167?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
    ---><---

    References listed on IDEAS

    as
    1. Brunner, Karl & Meltzer, Allan H., 1976. "The Phillips curve," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 1-18, January.
    2. James J. Heckman, 2001. "Micro Data, Heterogeneity, and the Evaluation of Public Policy: Nobel Lecture," Journal of Political Economy, University of Chicago Press, vol. 109(4), pages 673-748, August.
    3. Cho, Sungjin & Rust, John, 2008. "Is econometrics useful for private policy making? A case study of replacement policy at an auto rental company," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 243-257, July.
    4. World Bank, 2002. "World Development Indicators 2002," World Bank Publications - Books, The World Bank Group, number 13921.
    5. James J. Heckman & Vytlacil, Edward J., 2007. "Econometric Evaluation of Social Programs, Part I: Causal Models, Structural Models and Econometric Policy Evaluation," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 70, Elsevier.
    6. Anonymous, 2009. "Abstract of the discussion," British Actuarial Journal, Cambridge University Press, vol. 15(1), pages 202-217, March.
    7. Sarath Divisekera, 2010. "Economics of Leisure and Non-Leisure Tourist Demand: A Study of Domestic Demand for Australian Tourism," Tourism Economics, , vol. 16(1), pages 117-136, March.
    8. Isabel Cortés-Jiménez & Ramesh Durbarry & Manuela Pulina, 2009. "Estimation of Outbound Italian Tourism Demand: A Monthly Dynamic EC-LAIDS Model," Tourism Economics, , vol. 15(3), pages 547-565, September.
    9. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, September.
    10. repec:wbk:wbpubs:12425 is not listed on IDEAS
    11. Andreas Papatheodorou, 1999. "The demand for international tourism in the Mediterranean region," Applied Economics, Taylor & Francis Journals, vol. 31(5), pages 619-630.
    12. World Bank, 2005. "World Development Indicators 2005," World Bank Publications - Books, The World Bank Group, number 12426.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Saayman, Andrea & Viljoen, Armand & Saayman, Melville, 2018. "Africa’s outbound tourism: An Almost Ideal Demand System perspective," Annals of Tourism Research, Elsevier, vol. 73(C), pages 141-158.

    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. Saayman, Andrea & Viljoen, Armand & Saayman, Melville, 2018. "Africa’s outbound tourism: An Almost Ideal Demand System perspective," Annals of Tourism Research, Elsevier, vol. 73(C), pages 141-158.
    2. Matias D. Cattaneo & Sebastian Galiani & Paul J. Gertler & Sebastian Martinez & Rocio Titiunik, 2009. "Housing, Health, and Happiness," American Economic Journal: Economic Policy, American Economic Association, vol. 1(1), pages 75-105, February.
    3. ., 2012. "Migration impact assessment: a state of the art," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 1, pages 3-62, Edward Elgar Publishing.
    4. Francesco Agostinelli & Emilio Borghesan & Giuseppe Sorrenti, 2020. "Welfare, Workfare and Labor Supply: A Unified Evaluation," Working Papers 2020-083, Human Capital and Economic Opportunity Working Group.
    5. Heckman, James J. & Schmierer, Daniel & Urzua, Sergio, 2010. "Testing the correlated random coefficient model," Journal of Econometrics, Elsevier, vol. 158(2), pages 177-203, October.
    6. Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Document 111.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    7. Heckman, James J. & Schmierer, Daniel, 2010. "Tests of hypotheses arising in the correlated random coefficient model," Economic Modelling, Elsevier, vol. 27(6), pages 1355-1367, November.
    8. Ulrich Gunter & Egon Smeral, 2016. "The decline of tourism income elasticities in a global context," Tourism Economics, , vol. 22(3), pages 466-483, June.
    9. Chia-Lin Chang & Thanchanok Khamkaew & Michael McAleer, 2010. "Estimating Price Effects in an Almost Ideal Demand Model of Outbound Thai Tourism to East Asia," Working Papers in Economics 10/11, University of Canterbury, Department of Economics and Finance.
    10. Ismaël Mourifié & Marc Henry & Romuald Méango, 2020. "Sharp Bounds and Testability of a Roy Model of STEM Major Choices," Journal of Political Economy, University of Chicago Press, vol. 128(8), pages 3220-3283.
    11. Maria M. De Mello & Natércia Fortuna, 2005. "Testing Alternative Dynamic Systems for Modelling Tourism Demand," Tourism Economics, , vol. 11(4), pages 517-537, December.
    12. Dierk Herzer & Felicitas Nowak-Lehmann D. & Inmaculada Martínez-Zarzoso & Sebastian Vollmer, "undated". "On Distributed Lags in Dynamic Panel Data Models: Evidence from Market Shares," Working Papers on International Economics and Finance 06-05, FEDEA.
    13. Marie-Louise Mangion & Ramesh Durbarry & M. Thea Sinclair, 2005. "Tourism Competitiveness: Price and Quality," Tourism Economics, , vol. 11(1), pages 45-68, March.
    14. Rajesh K. PILLANIA, 2010. "Indo-China Trade: Trends, Composition And Future," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 5(2(12)/Sum), pages 129-137.
    15. Isabel Cortés-Jiménez & Ramesh Durbarry & Manuela Pulina, 2009. "Estimation of Outbound Italian Tourism Demand: A Monthly Dynamic EC-LAIDS Model," Tourism Economics, , vol. 15(3), pages 547-565, September.
    16. Arthur Lewbel, 2019. "The Identification Zoo: Meanings of Identification in Econometrics," Journal of Economic Literature, American Economic Association, vol. 57(4), pages 835-903, December.
    17. Jonathan Temple & Ludger Wößmann, 2006. "Dualism and cross-country growth regressions," Journal of Economic Growth, Springer, vol. 11(3), pages 187-228, September.
    18. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    19. Boris Bravo-Ureta & Daniel Solís & Víctor Moreira López & José Maripani & Abdourahmane Thiam & Teodoro Rivas, 2007. "Technical efficiency in farming: a meta-regression analysis," Journal of Productivity Analysis, Springer, vol. 27(1), pages 57-72, February.
    20. Yeboah, Godfred & Maynard, Leigh J., 2004. "The Impact Of Bse, Fmd, And U.S. Export Promotion Expenditures On Japanese Meat Demand," 2004 Annual meeting, August 1-4, Denver, CO 19978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    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:sae:toueco:v:18:y:2012:i:6:p:1251-1272. 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: SAGE Publications (email available below). General contact details of provider: .

    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.