IDEAS home Printed from https://ideas.repec.org/a/sae/toueco/v29y2023i2p378-391.html
   My bibliography  Save this article

Competition for domestic tourism in the COVID-19 pandemic: A characterization using a contest model

Author

Listed:
  • Juan Antonio Duro
  • António Osório
  • Alejandro Perez-Laborda

Abstract

The COVID-19 has caused a dramatic fall in international tourism demand. Destinations within countries have revised their promotion strategies, intensifying the competition for the domestic market, less affected by mobility restrictions. This paper proposes a contest theory model for characterizing this new context. Two types of destinations, coastal (sun and sand) and rural, compete for the existing demand in terms of promotion spending. The competition is driven by two main factors: the relative strategic advantage of each destination in the international and domestic markets and the strategic value given to each market. The pandemic has likely modified these factors, reducing the traditional advantage of coastal destinations and shifting the valuation towards the domestic market. According to the model, these changes may increase competition for the domestic market, with destinations rising promotion spending even in a context of reduced demand, which is consistent with the empirical evidence.

Suggested Citation

  • Juan Antonio Duro & António Osório & Alejandro Perez-Laborda, 2023. "Competition for domestic tourism in the COVID-19 pandemic: A characterization using a contest model," Tourism Economics, , vol. 29(2), pages 378-391, March.
    • Handle: RePEc:sae:toueco:v:29:y:2023:i:2:p:378-391
    DOI: 10.1177/13548166211049870
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/13548166211049870
    Download Restriction: no
    File URL: https://libkey.io/10.1177/13548166211049870?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. Jean Max Tavares & Giana de Vargas Mores & Edegar Luis Tomazzoni, 2015. "Where to Invest in Touristic Promotion? Game Theory as a Decision Instrument for the Public Sector," Tourism Economics, , vol. 21(4), pages 775-789, August.
    2. Glenn C. Loury, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(3), pages 395-410.
    3. Papatheodorou, Andreas, 2021. "A review of research into air transport and tourism," Annals of Tourism Research, Elsevier, vol. 87(C).
    4. Krueger, Anne O, 1974. "The Political Economy of the Rent-Seeking Society," American Economic Review, American Economic Association, vol. 64(3), pages 291-303, June.
    5. Farmer, Amy & Pecorino, Paul, 1999. "Legal Expenditure as a Rent-Seeking Game," Public Choice, Springer, vol. 100(3-4), pages 271-288, September.
    6. Yang, Yang & Zhang, Hongru & Chen, Xiang, 2020. "Coronavirus pandemic and tourism: Dynamic stochastic general equilibrium modeling of infectious disease outbreak," Annals of Tourism Research, Elsevier, vol. 83(C).
    7. Gary S. Becker, 1983. "A Theory of Competition Among Pressure Groups for Political Influence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(3), pages 371-400.
    8. David Neumark & Harry Holzer, 2000. "Assessing Affirmative Action," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 483-568, September.
    9. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603, Decembrie.
    10. Guido Candela & Roberto Cellini, 2006. "Investment in Tourism Market: A Dynamic Model of Differentiated Oligopoly," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(1), pages 41-58, September.
    11. Dasgupta, Partha & Stiglitz, Joseph, 1980. "Industrial Structure and the Nature of Innovative Activity," Economic Journal, Royal Economic Society, vol. 90(358), pages 266-293, June.
    12. Tom Lee & Louis L. Wilde, 1980. "Market Structure and Innovation: A Reformulation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(2), pages 429-436.
    13. Henri Kuokkanen & Frederic Bouchon, 2021. "When team play matters: Building revenue management in tourism destinations," Tourism Economics, , vol. 27(2), pages 379-397, March.
    14. Ciná Van Zyl, 2012. "Tourism Marketing: A Game Theory Tool for Application in Arts Festivals," Tourism Economics, , vol. 18(1), pages 43-57, February.
    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. Duro, Juan Antonio & Osório, António & Perez-Laborda, Alejandro, 2024. "Modeling uncertainty in tourism markets," Annals of Tourism Research, Elsevier, vol. 107(C).
    2. Roberto Cellini & Tiziana Cuccia, 2024. "Economic incentives for tourists: Evaluating a regional policy measure," Tourism Economics, , vol. 30(7), pages 1900-1907, November.

    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. Duro, Juan Antonio & Osório, António & Perez-Laborda, Alejandro, 2024. "Modeling uncertainty in tourism markets," Annals of Tourism Research, Elsevier, vol. 107(C).
    2. Mulligan, Casey B. & Tsui, Kevin K., 2015. "Political entry, public policies, and the economy," Research in Economics, Elsevier, vol. 69(3), pages 377-397.
    3. Cedric Duvinage & Peter-J. Jost, 2019. "The Role of Referees in Professional Sports Contests," Journal of Sports Economics, , vol. 20(8), pages 1014-1050, December.
    4. Sen, Debapriya & Tauman, Yair, 2007. "General licensing schemes for a cost-reducing innovation," Games and Economic Behavior, Elsevier, vol. 59(1), pages 163-186, April.
    5. Arye L. Hillman & Heinrich W. Ursprung, 2016. "Where are the rent seekers?," Constitutional Political Economy, Springer, vol. 27(2), pages 124-141, June.
    6. Matros, Alexander & Smirnov, Vladimir, 2016. "Duplicative search," Games and Economic Behavior, Elsevier, vol. 99(C), pages 1-22.
    7. Konrad, Kai A., 2014. "Search duplication in research and design spaces — Exploring the role of local competition," International Journal of Industrial Organization, Elsevier, vol. 37(C), pages 222-228.
    8. Julio R. Robledo, 2005. "The Effect of Litigation on Intellectual Property and Welfare," Vienna Economics Papers 0511, University of Vienna, Department of Economics.
    9. Harhoff, Dietmar, 1991. "R&D incentives and spillovers in a two-industry model," ZEW Discussion Papers 91-06, ZEW - Leibniz Centre for European Economic Research.
    10. Leibowicz, Benjamin D., 2018. "Welfare improvement windows for innovation policy," Research Policy, Elsevier, vol. 47(2), pages 390-398.
    11. Harry Flam, 1992. "Product Markets and 1992: Full Integration, Large Gains?," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 7-30, Fall.
    12. Harabi, Najib, 1994. "Technischer Fortschritt in der Schweiz: Empirische Ergebnisse aus industrieökonomischer Sicht [Technischer Fortschritt in der Schweiz:Empirische Ergebnisse aus industrieökonomischer Sicht]," MPRA Paper 6725, University Library of Munich, Germany.
    13. Beviá, Carmen & Corchón, Luis C., 2013. "Endogenous strength in conflicts," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 297-306.
    14. Ronald Goettler & Brett Gordon, 2014. "Competition and product innovation in dynamic oligopoly," Quantitative Marketing and Economics (QME), Springer, vol. 12(1), pages 1-42, March.
    15. Kai A. Konrad & Florian Morath, 2017. "Escalation in Dynamic Conflict: On Beliefs and Selection," Working Papers tax-mpg-rps-2017-05, Max Planck Institute for Tax Law and Public Finance.
    16. Immordino, Giovanni & Pagano, Marco & Polo, Michele, 2011. "Incentives to innovate and social harm: Laissez-faire, authorization or penalties?," Journal of Public Economics, Elsevier, vol. 95(7), pages 864-876.
    17. Gilbert Richard J, 2006. "Competition and Innovation," Journal of Industrial Organization Education, De Gruyter, vol. 1(1), pages 1-23, December.
    18. Sudipto Bhattacharya & Claude d’Aspremont & Sergei Guriev & Debapriya Sen & Yair Tauman, 2014. "Cooperation in R&D: Patenting, Licensing, and Contracting," International Series in Operations Research & Management Science, in: Kalyan Chatterjee & William Samuelson (ed.), Game Theory and Business Applications, edition 2, chapter 0, pages 265-286, Springer.
    19. Vahabi,Mehrdad, 2019. "The Political Economy of Predation," Cambridge Books, Cambridge University Press, number 9781107591370, November.
    20. Dahm, Matthias & Esteve-González, Patricia, 2018. "Affirmative action through extra prizes," Journal of Economic Behavior & Organization, Elsevier, vol. 153(C), pages 123-142.

    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:29:y:2023:i:2:p:378-391. 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.