Estimating the dynamic effects of volcano eruptions on domestic tourism: Evidence based on mobile-phone geo-positioning records

David Boto-Garcia and Veronica Leoni

No 2022/03, Efficiency Series Papers from University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG)

Abstract: Despite volcanic eruptions are among the most detrimental phenomena for tourism activities, few studies have explored their effects on tourism arrivals. This study investigates the dynamic effects of Cumbre Vieja eruption (La Palma Island, Spain) on domestic tourism demand at the municipal level. By exploring mobile-phone geo-position data in a quasi-experimental setting, we analyse the variation in local, peninsular and domestic tourists in La Palma municipalities as compared to non-treated municipalities in other islands in the Canary Archipelago after the eruption. Our event study estimates point to an average drop of about 41% in domestic tourism during the eruption, with a further decrease of around 55% in the following four months. Our findings offer valuable insights about island tourism-dependent economies’ resilience to natural disasters.

Pages: 33
Date: 2022
New Economics Papers: this item is included in nep-eff, nep-tur and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:oeg:wpaper:2022/03

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