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On the implications of tourism specialization and structural change in tourism destinations

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  • Simone Marsiglio

    (University of Wollongong, Australia)

Abstract

We explore the relationship between tourism specialization and structural change in an endogenous growth model, analyzing its implications for both economic growth and tourist flows. We consider a two-sector economic growth model where the development of tourism activities generates a production externality and a structural change, which modifies the resources-use intensity, ultimately affecting tourist flows. We characterize the balanced growth path equilibrium and analyze under which conditions structural change may generate fast economic growth, providing a theoretical support for the empirical evidence on tourism countries. We also show that structural change may alternatively lead to stages of rejuvenation, stagnation, or decline consistently with what advanced by the tourism area life cycle hypothesis. By combining these different results, we also show that an eventual phase of decline generated by structural change does not necessarily have to be interpreted as a poor economic outcome since there might exist a bell-shaped relationship between residents’ income and number of visitors.

Suggested Citation

  • Simone Marsiglio, 2018. "On the implications of tourism specialization and structural change in tourism destinations," Tourism Economics, , vol. 24(8), pages 945-962, December.
    • Handle: RePEc:sae:toueco:v:24:y:2018:i:8:p:945-962
    DOI: 10.1177/1354816618784788
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    References listed on IDEAS

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    1. Fabio Cerina, 2007. "Tourism Specialization and Environmental Sustainability in a Dynamic Economy," Tourism Economics, , vol. 13(4), pages 553-582, December.
    2. Simone Marsiglio & Alberto Ansuategi & Maria Carmen Gallastegui, 2016. "The Environmental Kuznets Curve and the Structural Change Hypothesis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(2), pages 265-288, February.
    3. Simone Marsiglio, 2015. "Economic Growth and Environment: Tourism as a Trigger for Green Growth," Tourism Economics, , vol. 21(1), pages 183-204, February.
    4. Egon Smeral, 2003. "A Structural View of Tourism Growth," Tourism Economics, , vol. 9(1), pages 77-93, March.
    5. Brau, Rinaldo & Lanza, Alessandro & Pigliaru, Francesco, 2007. "How Fast are Small Tourism Countries Growing? Evidence from the Data for 1980–2003," MPRA Paper 82776, University Library of Munich, Germany.
    6. Sauveur Giannoni & Marie-Antoinette Maupertuis, 2007. "Environmental Quality and Optimal Investment in Tourism Infrastructures: A Small Island Perspective," Tourism Economics, , vol. 13(4), pages 499-513, December.
    7. Jean-Jacques Nowak & Mondher Sahli & Isabel Cortés-Jiménez, 2007. "Tourism, Capital Good Imports and Economic Growth: Theory and Evidence for Spain," Tourism Economics, , vol. 13(4), pages 515-536, December.
    8. Rinaldo Brau & A. Lanza & F. Pigliaru, 2006. "How fast are small tourist countries growing? The 1980-2003 evidence," Working Paper CRENoS 200614, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    9. Simone Marsiglio, 2017. "On the carrying capacity and the optimal number of visitors in tourism destinations," Tourism Economics, , vol. 23(3), pages 632-646, May.
    10. Schubert, Stefan Franz & Brida, Juan Gabriel & Risso, Wiston Adrián, 2011. "The impacts of international tourism demand on economic growth of small economies dependent on tourism," Tourism Management, Elsevier, vol. 32(2), pages 377-385.
    11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    12. Simone Marsiglio, 2016. "Uncertainty, Crowding Aversion and Tourism Aversion in Tourism Destinations," Tourism Economics, , vol. 22(1), pages 111-123, February.
    13. Rinaldo Brau & Alessandro Lanza & Francesco Pigliaru, 2007. "How Fast are Small Tourism Countries Growing? Evidence from the Data for 1980–2003," Tourism Economics, , vol. 13(4), pages 603-613, December.
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    Cited by:

    1. Paolo Figini & Mondher Sahli & Laura Vici, 2018. "Advances in tourism economics: The sixth IATE (International Association for Tourism Economics) Conference," Tourism Economics, , vol. 24(8), pages 911-914, December.
    2. Gore, Surabhi & Borde, Nilesh & Desai, Purva Hegde & George, Babu, 2022. "A Structured Literature Review of the Tourism Area Life Cycle Concept," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 10(1), pages 1-20.
    3. Mulan Ma & Weishu Zhao & Guanxu Wan & Taotao Deng & Yi Yang, 2023. "Specialization versus diversity: The role of city size in tourist cities," Tourism Economics, , vol. 29(8), pages 2081-2102, December.

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