The effect of the 2018 Giro d’Italia on Israel’s tourism firm value

Juan Luis Nicolau, Abhinav Sharma and Tal Zarankin
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Juan Luis Nicolau: Virginia Tech, USA
Abhinav Sharma: Virginia Tech, USA
Tal Zarankin: Radford University, USA

Tourism Economics, 2019, vol. 25, issue 7, 1070-1083

Abstract: On September 18, 2017, the organizers of the 2018 Giro d’Italia announced that for the first time in its history, this world famous event would begin outside of Europe—in Israel. This article contributes to the literature by taking advantage of this unique opportunity of analysis; in particular, it tests the effect that this announcement had upon Israeli tourism companies’ market value. The results show that on the very same day the announcement was made, there was an increment in the firm value of these companies. We propose a conceptual model and argue that the hype generated helps enhance the country’s image, leading to higher expectations of incoming tourism. This article presents a contribution to the growing evidence regarding the impact of such announcements upon actual market value of tourism companies.

Keywords: destination image; event study; firm value; Israel; sports events (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:25:y:2019:i:7:p:1070-1083

DOI: 10.1177/1354816618820774

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