Macroeconomic Effects of Changes in Tourism Demand: A Simple Dynamic Model

2009 ◽  
Vol 15 (3) ◽  
pp. 591-613 ◽  
Author(s):  
Stefan F. Schubert ◽  
Juan Gabriel Brida
Keyword(s):  
Capital Accumulation ◽  
Current Account Deficit ◽  
Relative Price ◽  
Tourism Demand ◽  
Tourism Marketing ◽  
Marketing Activities ◽  
Marketing Expenditures ◽  
Macroeconomic Effects ◽  
Net Foreign Asset ◽  
Tourism Services

This paper studies the macroeconomic effects of an increase in tourism demand due both to an exogenous increase in foreigners' income and to tourism marketing activities in a small country which specializes in tourism production. Using a dynamic general equilibrium model, the authors show that an increase in tourism demand leads to an increase in the relative price of domestically produced tourism services and increases tourism production. Because the dynamic transition is characterized by capital accumulation and a current account deficit, the economy ends up with a higher capital stock but a lower stock of net foreign assets. Higher foreign income has a welfare-increasing effect, whereas an increase in marketing expenditures has ambiguous effects on residents' consumption and welfare. The authors also discuss the effects of a temporary demand stimulus, which is nonetheless shown to have permanent effects on the country's net foreign asset position and agents' consumption.

scholarly journals WHAT DOES DYNAMICS OF TOURISM MARKETING SHOW IN 12 DEVELOPING COUNTRIES?

2021 ◽  
Vol 6 (2) ◽  
pp. 201
Author(s):  
Manuel A Vanegas
Keyword(s):  
Developing Countries ◽  
Cross Section ◽  
Investment Policy ◽  
Estimation Methods ◽  
Tourism Demand ◽  
Dynamic Panel ◽  
Tourism Marketing ◽  
Demand Models ◽  
Short Run ◽  
Marketing Activities

This study is motivated by the idea to what extent tourism marketing investment contributes to tourism demand expansion. It searches for better estimation methods that can deal with the inter-temporal and cross-section correlation of the disturbances. The effect of omitting the tourism marketing variable, as evidenced by the drastic change in long and short-run elasticity values for all tourism demand models, has emerged clearly. There is a need for the national tourism institutions to have a clear, consistent, and sustained investment policy in tourism marketing activities with respect to enhanced effectiveness in allocating financial resources.Keywords: Tourism Marketing, 12 Developing Countries, Dynamic Panel, Elasticity Values, Omission of Tourism Marketing Variable.JEL: Z33, C23,O50

Marketing activities for the market of tourist services

2021 ◽  
pp. 115-122
Author(s):  
Nataliia Lytvyn ◽  
Yuliya Yarova
Keyword(s):  
Tourism Industry ◽  
Marketing Activity ◽  
Tourism Marketing ◽  
System A ◽  
Marketing Function ◽  
Tourism Product ◽  
Marketing Activities ◽  
Tourism Enterprises ◽  
Definition Of ◽  
Tourism Services

The article is considered the features of marketing activities in the tourism industry and conceptual approaches marketing technologies in the field of tourism. Profound understanding of destination marketing tourism. The article analyzes the system of formation of marketing activities in the market of tourism services. The concepts of «Marketing activity in the market of tourism services» are considered in details. Tourism is not only an economic, but also a social, cultural, environmental and political phenomenon. Based on this, tourism marketing should be used with the maximum possible consideration of all these factors. Then it will to a large extent reflect the interests of both travel agencies and tourists. Given that tourism is a complex system, a symbiosis of economics, politics, ecology, culture, close coordi- nation of marketing of various organizations and enterprises is necessary to achieve a positive marketing effect. The definition of «Tourism Product» in a narrow and broad sense is considered and its main distinguishing features are characterized. The main guidelines of the marketing activities of the marketing function in tour- ism are determined. The concepts of «Marketing activity in the market of tourism services» are considered in detail, according to which it is established that the goals of tourism enterprises should be realized due to the high-quality satisfaction of customers’ needs in a sufficiently long period of time. It has been established that those companies in the tourism sector will be able to achieve real success, creatively and unconventionally apply the marketing concept, are constantly search- ing within it for new ways to adapt to changing market conditions, and are ac- tively influencing the market and consumers. Keywords: tourism, tourism industry, tourism marketing, marketing technology, travel companies.

Economic modeling of touristic services demand in the regions

2019 ◽  
pp. 87-93
Author(s):  
Ivan Blahun ◽  
Halyna Leshchuk ◽  
Mariya Kyfor
Keyword(s):  
Systematic Approach ◽  
Income Elasticity ◽  
Probability Model ◽  
Economic Modeling ◽  
Tourism Demand ◽  
Goods And Services ◽  
Household Incomes ◽  
Tourism Services ◽  
Income Decile

Considering the important role of tourism in the socio-economic development of regions, the need for information and modeling of ways to increase demand for tourism services and tourism development is being updated. The article uses methods of analytical, logical, comparative analysis and systematic approach to study trends in demand for tourist services in Ukraine. Econometric modeling analyzes the demand for tourism services by the level of income and expenditures of the population in 2018. Trends in demand for tourism services in 2018 in terms of income and expenditure of the population with the use of the Tornquist econometric model have been analyzed. It is proposed to use the decile groups of the population for analyzing income and expenditure by the level of income, total income per capita, the level of household expenditure relative to income, the percentage of tourism expenditure by households, the expenditure on tourism and the elasticity of tourism demand. Average values of the population’s expenditures on tourism were established, which helped to determine the elasticity of effective demand for each decile group. The more than one unit of elasticity of effective tourism demand for each decile group indicated that tourism services for domestic households belong to the group of luxury goods and services. It should be noted that in the following decile income groups of households there is a decrease in elasticity. It means that when income tends to increase indefinitely, elasticity coefficients fall, and this indicates a stabilization of costs of this type. In this case, the percentage of households in each decile group that recorded the costs of organized tourism in their budgets and the value of the probability of household participation in this form of recreation was determined based on an estimated probability model. An analysis of the values of income elasticity indicators in each income decile group has shown that increasing household incomes contribute to increased demand for tourism services and an increase in the share of expenditures for these purposes in household budgets.

MARKETING ASPECTS IN THE OPERATIONS OF THE VELEBIT NATURE PARK

2009 ◽  
Vol 15 (1) ◽  
pp. 49-60
Author(s):  
Branka Berc Radisic ◽  
Lorena Bašan ◽  
Diana Bokulić
Keyword(s):  
Management Plan ◽  
Park Management ◽  
Marketing Concept ◽  
Tourism Marketing ◽  
Tourism Sector ◽  
Marketing Activities ◽  
Nature Park

The application of marketing in tourism involves marketing activities undertaken by all producers that are in any way connected to selling their products on the tourist market, as a means of earning revenue. Tourism marketing calls for a marketing concept to be implemented in companies in the tourism sector and other tourism-supply providers. Upon the adoption of the Management Plan of the Velebit Nature Park, a marketing concept, as an element of efficient park management, must be employed to help ensure the prosperity of Park operations in all areas and across all levels.

Analytics Overuse in Advertising and Promotion Budget Forecasting

2017 ◽  
pp. 477-505
Author(s):  
Burçin Güçlü ◽  
Miguel-Ángel Canela
Keyword(s):  
Environmental Risk ◽  
Information Overload ◽  
Amount Of Information ◽  
Marketing Analytics ◽  
Common Concern ◽  
Marketing Activities ◽  
Decision Environment ◽  
Marketing Expenditures ◽  
Marketing Spending ◽  
Advertising And Promotion

Several studies have recently raised a common concern in the field of management, which is the overspending in marketing activities. In this paper, we propose and empirically test that overspending in marketing investments is an unfortunate outcome of information overload, in a sense that managers who confront too many risk informants in their decision environment tend to overinvest in marketing activities due to the overemphasis on the environmental risk. In a longitudinal experiment, where we manipulated the amount of information through marketing analytics, we demonstrate that firms employing simple marketing analytics are less prone to increase their marketing expenditures due to the fear of losing customers, and have a lower expectancy that their competitors will increase their brand-level advertising and promotional expenditures, compared to firms using a combination of simple and complex marketing analytics. Moreover, we demonstrate that firms employing simple marketing analytics keep their overall marketing spending at a lower level, and spend less in brand-level marketing, especially in promotional activities, compared to when using a combination of simple and complex marketing analytics.

Analytics Overuse in Advertising and Promotion Budget Forecasting

2017 ◽  
pp. 163-191
Author(s):  
Burçin Güçlü ◽  
Miguel-Ángel Canela
Keyword(s):  
Environmental Risk ◽  
Information Overload ◽  
Amount Of Information ◽  
Marketing Analytics ◽  
Common Concern ◽  
Marketing Activities ◽  
Decision Environment ◽  
Marketing Expenditures ◽  
Marketing Spending ◽  
Advertising And Promotion

Several studies have recently raised a common concern in the field of management, which is the overspending in marketing activities. In this paper, we propose and empirically test that overspending in marketing investments is an unfortunate outcome of information overload, in a sense that managers who confront too many risk informants in their decision environment tend to overinvest in marketing activities due to the overemphasis on the environmental risk. In a longitudinal experiment, where we manipulated the amount of information through marketing analytics, we demonstrate that firms employing simple marketing analytics are less prone to increase their marketing expenditures due to the fear of losing customers, and have a lower expectancy that their competitors will increase their brand-level advertising and promotional expenditures, compared to firms using a combination of simple and complex marketing analytics. Moreover, we demonstrate that firms employing simple marketing analytics keep their overall marketing spending at a lower level, and spend less in brand-level marketing, especially in promotional activities, compared to when using a combination of simple and complex marketing analytics.

Competition and Cooperation Policy in Motorcar Industry between Korea and China as a Global Market Strategy

2002 ◽  
Vol 5 (2) ◽  
pp. 65-85
Author(s):  
Hae-Du Hwang ◽  
Wobong Kim ◽  
Dae-Ho Kim
Keyword(s):  
Production Technology ◽  
Capital Accumulation ◽  
Strategic Alliance ◽  
Economies Of Scale ◽  
Emerging Market ◽  
Global Market ◽  
Market Strategy ◽  
Marketing Activities ◽  
Chinese Counterpart ◽  
Retained Earnings

Despite having achieved economies of scale, the Korean motorcar industry has not been so successful in procuring prestige in such areas of capital accumulation, technology catch-up, brand equity and managerial know-how. It may be vital to launch a strategic alliance with Chinese counterpart by providing production technology of Korea in exchange for the huge magnitude of emerging market of China. A substantial benefit may be accrued to both countries via mutually enhanced competitiveness if Korea transfers production technology of small or medium-cars to China and jointly pioneers the frontiers of ancillary industry. An up-surge in the retained earnings of the industry may work as a building block of accommodating a pattern of intensive growth by augmenting technological innovation and institutional changes. The implementation of cooperation in R&D with Chinese counterpart and competition in marketing activities may allow the Korean motorcar industry to capitalize such a golden opportunities to put itself on the right track of technology innovation, marketing activities and linkage effects.

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