Theme 11: Tourism, Cultural Assets
  Number of Papers Currently Posted to this Theme: 1 | 2 | 3 | 4 | 5 | 6
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Modelling Tourism Impacts on Small Island Economies: Evidence from Cyprus, Malta and Mauritius
 
M. Thea Sinclair, Professor; Adam Blake, Lecturer; and Nishaal Gooroochurn
Tourism and Travel Research Institute, Nottingham University Business School, Jubilee Campus, Nottingham, United Kingdom
 
Abstract
  Tourism has become one of the leading economic activities in many small island developing states. Hence, changes in tourism demand can have considerable economic impacts, both at the macroeconomic level and on different sectors within the economy. Measurement of the magnitudes of the impacts has traditionally been undertaken using input-output modelling, which is constrained by such assumptions as fixed prices and fixed coefficients. Input-output modelling may over-estimate the impacts, as it does not take account of crowding out effects. This paper will use the more widely encompassing approach of Computable General Equilibrium (CGE) modelling to quantify the impacts of tourism on the island economies of Cyprus, Malta and Mauritius. The CGE models will quantify the impacts of changes in tourism demand on macroeconomic variables such as the government budget and welfare and, at the sectoral level, on income, employment and value added for tourism-related sectors such as hotels and restaurants, as well as on all other sectors of the economies. The effects of policy changes will also be modelled and discussed.  
 

 
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Assessing the Effects of an Increase in Tropical Cyclone Activity on the Tourism Sector-
The Case of Mauritius
 
Sanjeev K. Sobhee, Associate Professor
Department of Economics and Statistics, University of Mauritius, Reduit, Mauritius
 
Abstract
  Our aim in this paper will be to analyse the effects of an increase in tropical cyclone activity as indicated by global warming on tourism in a small island developing state. Mauritius constitutes our specific case study in which we approach the impact through observed market demand conditions for the island’s tourism. This is done primarily by setting two objectives, namely, the estimation of a demand function for tourism, based on the Travel Cost method, and the computation of the monetary implications of potential climate change. We intend to apply more precisely a Travel Cost model for a single site in which the choice problem of international travelers will be addressed. Needless to add, this will involve an optimization framework whereby the travel cost demand function will be obtained. This function will capture specificities of Mauritius and may well involve an ecological variable. In addition, the explanatory variables would include a climatological factor. We intend to track global warming and extreme weather conditions via tropical cyclone activity in the South West corner of the Indian Ocean. The relevant empirical demand function will be estimated using panel data pertaining to tourist arrivals from 14 countries spanning across a period of 17 years (1987-2003). Our findings would help to analyse the specific effects of climate change on tourist arrivals and the subsequent impact on earnings of the sector.  
 

 
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Development of Coastal Tourism and Homestays on Dachangshan Dao,  Liaoning Province

North East China
 
Gu Ming & Wong Poh Poh, Associate Professor
Department of Geography, National University of Singapore, Singapore
 
 
Abstract
 

In China, tourism is being actively developed and is evolving towards a more open-economy form. Coastal tourism is encouraged but has come into conflict with other uses and sustainable development is an issue. Dachangshan Dao, the largest island in the Changshan island group in Liaoning Province, off the Yellow Sea, provides an opportunity to assess one form of island tourism under development. The study provides valuable lessons on the local community’s involvement in island tourism. In response to domestic tourism demand at Yangjia Beach on Dachangshan Dao, the government has allowed the farmers on this beach to convert their farms into homestays. This paper analyzed the morphological changes of the farms into homestays and the transformation of the local farmers to homestay-owners. As tourism develops, conflicting interests have emerged between the tourists, the local community groups (e.g. farmers, fishers), the private developers, and the government agencies. The nature of empowerment, conflicts, or harmony among the different stakeholders was studied and the power structure behind these phenomena was analyzed. In addition, the current accommodation capacity, the facility capacity, and the infrastructure (e.g. drainage system, sewage disposal) of the homestays were assessed. Policy, legislation and planning relating to the homestays were also evaluated. Finally, improvements to the homestays and their future were discussed.

 
 
 
 
 

 
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Designing Tourism Taxation in a Small Island Industrialising Economy
 
Nishaal Gooroochurn, Lecturer
Economic Division, Nottingham University Business School, Jubilee Campus, Nottingham, United Kingdom
Chris Milner, Professor
School of Economics, University of Nottingham, University Park, Nottingham, United Kingdom
 
 
Abstract
 

Tourism is one of the fastest growing sectors and has an important contribution in the economy of several small island economies. In the face of budgetary constraints and pressures to decrease reliance on a variety of taxes, especially trade taxes, several countries are relying on tourism taxes. Indeed, there is an economic rationale for tourism taxes in so far as they correct for market failure and generate revenue that governments can use for such purposes as redistribution, infrastructure provision or to sustain the development of the sector. As tourism taxes proliferate, businesses and consumers are pressing the government for reductions in both the range and levels of tourism taxes on the grounds that they constitute a disincentive to demand, profitability and investment. Moreover, taxes can be inefficient and inequitable, if not set at appropriate levels, and may lead to retaliation by other countries. Clearly, tourism taxation has become a contentious issue and, given its growing importance in several countries, it is important to understand and measure its economic underpinnings and effects. This paper uses a Computable General Equilibrium (CGE) model of Mauritius to investigate the efficiency, income distribution, macroeconomic, sectoral and tax revenue effects of various forms of tourism taxation. The economic effects of substituting the hotels and restaurants tax by the VAT are also investigated.

 
 
 
 
 

 
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Public Cultural Expenditures and Tourism Industry: The Case of Mauritius
 
Kheswar Chandan Jankee, Senior Lecturer
Department of Economics and Statistics, University of Mauritius, Mauritius
 
 
Abstract
 

The blend of cultural diversity and social unity is an invaluable asset for a small island developing economy like Mauritius. It is not only a major source of attraction for tourists but also an input in the promotion of economic and social development. The preservation of cultural diversity and consolidation of social unity has loomed large in the design of cultural policies, which have major implications for the development of Mauritius as a tourist resort. Given the high level of budget deficits and the recent objective of the government to rationalize public expenditures, there is a lot of recent discussion on the implications of the cuts in public cultural expenditures on cultural developments and tourism industry. The objective of this paper is to undertake an econometric analysis of the economic and political determinants of cultural expenditures and its impact on the tourism industry. The results of this study will help policy makers taking informed decisions relating to budgetary allocations to culture and its concomitant impact on tourism.

 
 
 
 
 

 
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Islanders Exoticism: Case Stories from Mauritius Island, Indian Ocean
 
Khemraj Sooknah, Projects Coordinator, and Nazmeen Parbotteea
Mauritian Wildlife Club, Mauritius
 
 
Abstract
 

The socioeconomic development of any small island started with the introduction of exotic species and its exploitation. Eucalyptus and Aloe plant species were introduced to Mauritius and used in the processing and packing of sugar.

 
 

Nowadays these species are simply ignored as the traditional practices of processing and packing of   sugar are done using mechanized systems. Changes in the lifestyles of the residents are so quick that chemical products are finding ways to replace the natural cures provided by eucalyptus and aloe plants.

 
 

Plastic fiber bags replace aloe fiber bags. What used to be a good idea since  the seventeenth century is nowadays obsolete. The impacts on the environment of small island have clearly indicated that option of using biological products is best suited . But, Who cares.

 
 
 
 
 
 
 
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