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Comparative Advantage in Tourism - A Supply-Side Analysis of Tourism Flows

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  • Jie Zhang
  • Camilla Jensen

Abstract

The purpose of the paper is to relate the tourism demand model with the traditional theories that explain international trade flows. In the existing tourism literature, tourism flows and tourism demand forecasts are typically explained by the demand-side variables. But in the traditional trade theories, international trade flows are explained from the supply-side variables, i.e. the comparative advantage of the exporting countries. A model is proposed in the paper, trying to explain in a modern and global economy, the factors that from a supply-side perspective can decide the comparative advantage of countries in a certain type of service activity. The preliminary results render a strong support for the relevance of certain supply-side factors in explaining international tourism flows such as both natural endowments and created assets associated with foreign investments, hotel capacity and level of development.

Suggested Citation

  • Jie Zhang & Camilla Jensen, 2005. "Comparative Advantage in Tourism - A Supply-Side Analysis of Tourism Flows," ERSA conference papers ersa05p183, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa05p183
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    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa05/papers/183.pdf
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    2. Antonio García Sánchez & David Siles López, 2015. "Tourism Destination Competitiveness: The Spanish Mediterranean Case," Tourism Economics, , vol. 21(6), pages 1235-1254, December.
    3. Nkunde Mwase, 2013. "Tourism flows to Caribbean islands: an empirical note," Applied Economics Letters, Taylor & Francis Journals, vol. 20(10), pages 957-965, July.
    4. , & Ismail, Normaz Wana & Kaliappan, Shivee, 2013. "Determinants of International Tourism in Malaysia: Evidence from Gravity Model," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 47(1), pages 131-138.
    5. Teelucksingh, Sonja S. & Watson, Patrick K., 2013. "Linking tourism flows and biological biodiversity in Small Island Developing States (SIDS): evidence from panel data," Environment and Development Economics, Cambridge University Press, vol. 18(4), pages 392-404, August.
    6. Banos-González, Isabel & Martínez-Fernández, Julia & Esteve-Selma, Miguel Ángel, 2015. "Dynamic integration of sustainability indicators in insular socio-ecological systems," Ecological Modelling, Elsevier, vol. 306(C), pages 130-144.

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