THE EFFECTS ON ENVIRONMENTAL INVESTMENT OF CHANGES IN TOURISM DEMAND

Elvio Accinelli (), Juan Gabriel Brida, Edgar Carrera and Juan Pereyra

MPRA Paper from University Library of Munich, Germany

Abstract: In this short paper we analyze the impact of tourist demand in hotel rooms on the investment of hotels on environmental quality. We show that when income of the tourists increases, then to maintain the demand for rooms, the hotels must in-crease the investment on the environmental quality of the region where there is an increment of the tourist activity. In the particular case where we have three differ-ent hotel chains located in three different tourist regions, we show that the incen-tive of hotel chains to invest in environmental quality depends on the demand for days of rest on the part of tourists and on the level of aggregate income. We also show that if total income increase, then the incentive to invest in environmental quality increases in the region where the price of a hotel room is lower.

Keywords: environmental investment; hotelling competition; service quality; sustainable tourism (search for similar items in EconPapers)
JEL-codes: M0 D0 L83 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-env and nep-tur
Date: 2007-11
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Published in TOURISMOS: An International Multidisciplinary Journal of Tourism 2.2(2007): pp. 129-140

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