Expansion of a hotel chain and environmental quality

Aleix Calveras
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Aleix Calveras: Universitat de les Illes Balears

Investigaciones Economicas, 2007, vol. 31, issue 2, pages 263-295

Abstract: In this paper we analyze in which way the expansion strategy of a hotel chain is influenced by the environmental quality of both the domestic and the foreign region. We show that the environment (which is a public good, and determines the competitive advantage of hotels in a region) plays a double role in shaping the strategy of the chain. Thus, a chain will expand internationally when the combined environmental potential of the two regions is large enough. Or, alternatively, for a home region with a medium-low environmental potential, the chain will expand internationally when the foreign region has a high enough potential in environmental quality.

Keywords: Multinational firms; environment; tourism industry. (search for similar items in EconPapers)
JEL-codes: M40 J33 (search for similar items in EconPapers)
Date: 2007

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