Not always sunny in paradise: prices and brand diversity in touristic areas supermarkets

Javier Campos, Juan Jiménez González and Ancor Suárez-Alemán ()

No 201211, IREA Working Papers from University of Barcelona, Research Institute of Applied Economics

Abstract: Using a dataset from consumption patterns in the island of Gran Canaria collected by the authors, this paper attempts to quantify some non-positive effects of tourism on local destination retail markets for goods and services. In particular, we empirically prove, controlling by factors such as population, size of supermarkets or number of competitors, two main effects: first, that supermarkets located in touristic areas charge higher prices than those in non-touristic areas; and second, that brand diversity is lower in the same stores, particularly in the case of smaller ones. These results confirm that local population do not always benefit from living in a touristic city and possibly provide a more balanced view on the positive and negative side of tourism.

Keywords: tourism effects; prices; brand diversity; supermarkets; Canary Islands. JEL classification: L83; L13. (search for similar items in EconPapers)
Pages: 24 pages
Date: 2012-05, Revised 2012-05
New Economics Papers: this item is included in nep-hme and nep-tur
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:ira:wpaper:201211

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