Measuring the Effect of Subsidization on Tourism Demand and Destination Competitiveness through the AIDS Model: An Evidence-Based Approach to Tourism Policymaking

Marie-Louise Mangion, Chris Cooper, Isabel Cortés-Jimenez and Ramesh Durbarry
Additional contact information
Marie-Louise Mangion: Valletta, Malta
Chris Cooper: Faculty of Business, Oxford Brookes University, Wheatley Campus, Wheatley, Oxford OX33 1HX, UK
Isabel Cortés-Jimenez: National Research Institute of Science and Technology for Environment and Agriculture (IRSTEA), Domaine universitaire, 2 rue de la Papeterie, F-38402 Saint-Martin-d'Hères Cedex, France, and Research Quantitative Analysis (AQR-IREA), Universitat de Barcelona, Spain
Ramesh Durbarry: UOM Trust Business School, Reduit, Mauritius

Tourism Economics, 2012, vol. 18, issue 6, 1251-1272

Abstract: There is increasing recognition of the need for improved policymaking in tourism and the consequent evaluation of tourism public policies. This paper demonstrates the usefulness of econometric modelling for tourism policy analysis, showing that crucial information is generated from such econometric policy analysis. A dynamic Almost Ideal Demand System (AIDS) model is used to quantify the impact on demand elasticity of Malta's policy of supporting British inclusive tour holidays. Such analysis can contribute to improved policymaking as the policymaker is informed about how and to what extent the market has responded to previous policies – thus promoting an evidence-based approach to tourism policymaking.

Keywords: evidence-based policy; policy evaluation; Almost Ideal Demand System (AIDS); subsidization; inclusive tour holidays; Malta (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/te.2012.0167 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:18:y:2012:i:6:p:1251-1272

DOI: 10.5367/te.2012.0167

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().