System Dynamics Approach to TALC Modeling

Marko Hell and Lidija Petrić
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Marko Hell: Department of Business Informatics, Faculty of Economics, Business and Tourism, University of Split, 21000 Split, Croatia
Lidija Petrić: Department of Tourism and Economy, Faculty of Economics, Business and Tourism, University of Split, 21000 Split, Croatia

Sustainability, 2021, vol. 13, issue 9, 1-22

Abstract: The system dynamics applied in this research on modeling a tourist destination (area) life cycle (TALC) contributes to understanding its behavior and the way that information feedback governs the use of feedback loops, delays and stocks and flows. On this basis, a system dynamic three-staged TALC model is conceptualized, with the number of visitors V as an indicator of the carrying capacities’ dynamics and the flow function V(t) to determine the TALC stages. In the first supply-dominance stage, the model indicated that arrivals are growing until the point of inflexion. After this point, arrivals continue growing (but with diminishing growth rates), indicating the beginning of the demand-dominance stage, ending up with the saturation point, i.e., the maximum number of visitors. The simulated TALC system dynamics model was then applied to five EU destinations (Living Labs) to explain their development along the observed period (2007–2019). The analysis revealed that all observed Living Labs reached the second lifecycle stage, with one entered as early as in 2015 and another in 2018. Lifecycle stage durations may significantly differ across the destinations, as do the policies used either to prevent stagnation or to restructure the offer to become more sustainable and resilient.

Keywords: system dynamics; TALC system dynamics model; living labs/destinations (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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