Competition for domestic tourism in the COVID-19 pandemic: A characterization using a contest model

Juan Antonio Duro, António Osório and Alejandro Perez-Laborda
Authors registered in the RePEc Author Service: António Miguel Osório-Costa

Tourism Economics, 2023, vol. 29, issue 2, 378-391

Abstract: The COVID-19 has caused a dramatic fall in international tourism demand. Destinations within countries have revised their promotion strategies, intensifying the competition for the domestic market, less affected by mobility restrictions. This paper proposes a contest theory model for characterizing this new context. Two types of destinations, coastal (sun and sand) and rural, compete for the existing demand in terms of promotion spending. The competition is driven by two main factors: the relative strategic advantage of each destination in the international and domestic markets and the strategic value given to each market. The pandemic has likely modified these factors, reducing the traditional advantage of coastal destinations and shifting the valuation towards the domestic market. According to the model, these changes may increase competition for the domestic market, with destinations rising promotion spending even in a context of reduced demand, which is consistent with the empirical evidence.

Keywords: touristic destinations; tourism promotion; COVID-19 pandemics; contest models (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:29:y:2023:i:2:p:378-391

DOI: 10.1177/13548166211049870

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