Tourism and business cycles

Lucie Plzakova and Egon Smeral

Chapter 10 in A Modern Guide to Tourism Economics, 2022, pp 170-184 from Edward Elgar Publishing

Abstract: This contribution highlights the importance of accounting for variable tourism income elasticities in analyzing business cycles and formulating business strategies. Because demand forecasting is a necessity for tourism management to define efficient business strategies, we point out that approaches with constant elasticity assumptions might lead to substantial forecasting failures. Therefore, in the course of distinct business cycles, we have to take into account that different income effects are to be expected. The contribution uses psychological concepts and financial market aspects to explain asymmetric tourism demand behavior. We emphasize coherently that the integration of psychological factors such as loss aversion and other quality of life aspects as well as economic factors like liquidity constraints, reluctant lending behavior of banks, precautionary saving, changing household behavior and financial innovations delivers an effective framework to explain asymmetric behavior in tourism demand.

Keywords: Business and Management; Development Studies; Economics and Finance; Environment; Geography; Urban and Regional Studies (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781800378766/9781800378766.00016.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

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:elg:eechap:20341_10

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().