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Estimating Tourist Externalities on Residents: A Choice Modeling Approach to the Case of Rimini

Author

Listed:
  • Paolo Figini

    (University of Bologna)

  • Massimiliano Castellani

    (University of Bologna)

  • Laura Vici

    (University of Bologna)

Abstract

During their holidays, tourists produce direct and indirect effects on local residents, which can either be positive or negative. In this paper we investigate how residents of Rimini, a popular Italian seaside resort hosting more than ten million national and foreign overnight stays every year, internalise such effects. We use a stated preference approach and, in particular, a discrete choice modelling technique; within this framework, we are able to test some conjectures about residents’ welfare, by measuring their willingness to pay for alternative scenarios regarding the use of the territory. Tourist policies and public investments in the destination affect residents’ welfare, and our results might suggest areas of potential synergies and trade-off, leading to important policy implications.

Suggested Citation

  • Paolo Figini & Massimiliano Castellani & Laura Vici, 2007. "Estimating Tourist Externalities on Residents: A Choice Modeling Approach to the Case of Rimini," Working Papers 2007.76, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2007.76
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    References listed on IDEAS

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    1. Adamowicz, Wiktor L. & Boxall, Peter C. & Williams, Michael & Louviere, Jordan, 1995. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments versus Contingent Valuation," Staff Paper Series 24126, University of Alberta, Department of Resource Economics and Environmental Sociology.
    2. Rinaldo Brau & D. Cao, 2005. "Uncovering the macrostructure of tourists' preferences. A choice experiment analysis of tourism demand to Sardinia," Working Paper CRENoS 200514, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    3. Alberini, Anna & Zanatta, Valentina & Rosato, Paolo, 2007. "Combining actual and contingent behavior to estimate the value of sports fishing in the Lagoon of Venice," Ecological Economics, Elsevier, vol. 61(2-3), pages 530-541, March.
    4. Boxall, Peter C. & Adamowicz, Wiktor L. & Swait, Joffre & Williams, Michael & Louviere, Jordan, 1996. "A comparison of stated preference methods for environmental valuation," Ecological Economics, Elsevier, vol. 18(3), pages 243-253, September.
    5. Richard C. Ready & Jean C. Buzby & Dayuan Hu, 1996. "Differences between Continuous and Discrete Contingent Value Estimates," Land Economics, University of Wisconsin Press, vol. 72(3), pages 397-411.
    6. Massimiliano Mazzanti, 2003. "Discrete choice models and valuation experiments," Journal of Economic Studies, Emerald Group Publishing, vol. 30(6), pages 584-604, October.
    7. Nick Hanley & Douglas MacMillan & Robert E. Wright & Craig Bullock & Ian Simpson & Dave Parsisson & Bob Crabtree, 1998. "Contingent Valuation Versus Choice Experiments: Estimating the Benefits of Environmentally Sensitive Areas in Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(1), pages 1-15, March.
    8. Peter A. Diamond & Jerry A. Hausman, 1994. "Contingent Valuation: Is Some Number Better than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 45-64, Fall.
    9. Riccardo Scarpa, 2000. "Contingent Valuation Versus Choice Experiments: Estimating the Benefits of Environmentally Sensitive Areas in Scotland: Comment," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(1), pages 122-128, January.
    10. Jeff Bennett & Russell Blamey (ed.), 2001. "The Choice Modelling Approach to Environmental Valuation," Books, Edward Elgar Publishing, number 2028.
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    Cited by:

    1. Rinaldo Brau & Antonello Scorcu & Laura Vici, 2009. "Assessing visitor satisfaction with tourism rejuvenation policies: the case of Rimini, Italy," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(1), pages 25-42.
    2. Viglia, Giampaolo & Dolnicar, Sara, 2020. "A review of experiments in tourism and hospitality," Annals of Tourism Research, Elsevier, vol. 80(C).
    3. Bianca Biagi & Claudio Detotto, 2020. "Crime as Tourism Externality," Regional Studies, Taylor & Francis Journals, vol. 48(4), pages 693-709, July.
    4. Stefan F. Schubert, 2010. "Coping with Externalities in Tourism: A Dynamic Optimal Taxation Approach," Tourism Economics, , vol. 16(2), pages 321-343, June.
    5. Massimiliano Castellani & Pierpaolo Pattitoni & Laura Vici, 2015. "Pricing Visitor Preferences for Temporary Art Exhibitions," Tourism Economics, , vol. 21(1), pages 83-103, February.
    6. Stefan F Schubert & Günter Schamel, 2021. "Sustainable tourism development: A dynamic model incorporating resident spillovers," Tourism Economics, , vol. 27(7), pages 1561-1587, November.

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    More about this item

    Keywords

    Tourism; External Effects; Discrete Choice Modelling;
    All these keywords.

    JEL classification:

    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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