Tourism Development in Madeira: An Analysis Based on the Life Cycle Approach

António Almeida and Antónia Correia
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António Almeida: Social Sciences Competence Centre, University of Madeira, Campus Universitário da Penteada, 9000-390 Funchal, Portugal
Antónia Correia: CASEE, Faculty of Economics, University of Algarve, Campus de Gambelas, 8000-117 Faro, Portugal

Tourism Economics, 2010, vol. 16, issue 2, 427-441

Abstract: This paper identifies Madeira Island's growth stage in accordance with Butler's life cycle model. Life cycle analysis is pursued using an econometric approach over an extended period, from 1976 to 2006. The results suggest that Madeira is about to enter the stagnation phase. The industry's development since the 1970s was found to conform to Butler's model, but in its own way. In the case of Madeira, the island's positive image and the time span within each of the life cycle stages challenge the traditional life cycle model, suggesting rather that the maturity stage may persist indefinitely.

Keywords: Butler's model; tourism demand; life cycle analysis; Madeira Island (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:16:y:2010:i:2:p:427-441

DOI: 10.5367/000000010791305644

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