Development Strategies for Tourism Destinations: Tourism Sophistication vs. Resource Investments

Rainer Andergassen and Guido Candela ()
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Guido Candela: Department of Economics, University of Bologna, Italy; RCEA, Italy

Working Paper series from Rimini Centre for Economic Analysis

Abstract: This paper investigates the effectiveness of development strategies for tourism destinations. We show that resource investments unambiguously increase tourism revenues and that increasing the degree of tourism sophistication, that is increasing the variety of tourism related goods and services, increases tourism activity and decreases the perceived quality of the destination’s resource endowment, leading to an ambiguous effect on tourism revenues. We disentangle these two effects and characterize situations where increasing the degree of tourism sophistication is a viable development strategy and where it is impracticable without resource investment.

Keywords: Tourism destination; tourism sophistication; resource investments; tourism demand; development strategy (search for similar items in EconPapers)
JEL-codes: D11 L83 O1 (search for similar items in EconPapers)
Date: 2010-01, Revised 2013-06
New Economics Papers: this item is included in nep-cul and nep-tur
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http://www.rcea.org/RePEc/pdf/wp35_10.pdf (application/pdf)

Related works:
Journal Article: Development Strategies for Tourism Destinations: Tourism Sophistication vs. Resource Investments (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:rim:rimwps:35_10

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