High unemployment and tourism participation

Joaquín Alegre, Llorenç Pou and Maria Sard

Current Issues in Tourism, 2019, vol. 22, issue 10, 1138-1149

Abstract: This paper analyses individual tourism participation decisions during a worldwide economic downturn. Given the nature of tourism services, a reduction in habitual consumption is highly probable during an economic crisis. Since the unemployment rate is strongly correlated with the economic cycle, the hypothesis that is discussed concerns whether residents’ decision to participate in tourism is affected by their region's level of unemployment. More specifically, it is suggested that unemployment not only affects the tourism participation decision of those who are out-of-work, but that aggregate unemployment (measured as the region's unemployment rate) also has a bearing on such decisions made by individuals in general. The results that were obtained for a set of EU countries show that the unemployment level has a positive effect on the probability of not going on holidays. This effect emerges when there is an unemployment rate of over 10%.

Date: 2019
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DOI: 10.1080/13683500.2018.1464550

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