Research Note: Tourism Expenditure and all-Inclusive Packages – the case of a Mature Mediterranean Destination

Joaquín Alegre and Llorenç Pou

Tourism Economics, 2008, vol. 14, issue 3, 645-655

Abstract: Nowadays, all-inclusive packages represent one of the top holiday choices for tourists visiting mature Mediterranean sun-and-sand destinations. Compared to other types of board, all-inclusive packages suppose a change in the way tourists purchase services. This research note analyses the changing patterns of expenditure caused by all-inclusive packages. For that purpose, an empirical analysis is applied to the case of the Balearic Islands, one of the leading Mediterranean destinations. The main findings are twofold: first, compared to other types of board, all-inclusive packages lead to a reduction in the destination's revenue from tourism. Second, all-inclusive packages are causing a significant change in the distribution of tourist expenditure among economic agents. In particular, compared to other types of board, spending in the country of origin is higher for all-inclusive tourists, while spending in the destination is substantially lower.

Keywords: all-inclusive packages; tourist expenditure; Balearic Islands (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:14:y:2008:i:3:p:645-655

DOI: 10.5367/000000008785633631

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