The Impact of Inbound Demand on Price Levels in Tourism Municipalities: Empirical Evidence from Catalonia

Josep-Maria Espinet, Modest Fluvià and Ricard Rigall-I-Torrent

Tourism Economics, 2011, vol. 17, issue 1, 159-189

Abstract: It is usually argued that tourism exerts negative economic impacts in host jurisdictions through the increase in prices linked to increasing demand for basic services and goods from tourists. This paper surveys 149 products in 45 tourism and non-tourism jurisdictions in Catalonia (which represent a total of 18,500 prices) in order to test empirically several hypotheses related to differences in price levels in tourism and non-tourism jurisdictions. The main results show that prices in tourism jurisdictions are not significantly higher than those in non-tourism ones. The analysis suggests that tourists are likely to pay higher prices than natives for some products.

Keywords: tourism demand; price level and price dispersion; traded and non-traded goods; search costs (search for similar items in EconPapers)
Date: 2011
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:17:y:2011:i:1:p:159-189

DOI: 10.5367/te.2011.0020

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