Journal
TOURISM MANAGEMENT
Volume 61, Issue -, Pages 426-433Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.tourman.2017.03.006
Keywords
Elasticity; Human capital investment; OLG model; Productivity growth; Tourism demand; Developing countries
Funding
- Changwon National University
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This paper proposes a model for the demand for tourism in the context of a developing country. The parameters of the model are a tourist sector characterised by monopolistic competition, where human capital is the main factor of production and hotels have market power. Additionally land use is marked by demand from both agricultural and tourism sectors. From the household side, a simplified OLG approach is developed to consider consumption, human activity and the number of children. A dynamic framework is therefore identified to investigate the long-run consequences of increasing labor productivity and lowering the fertility rate. If the supply-side policy leads to,economic growth, the tourism led growth hypothesis is theoretically confirmed. It is concluded that an increase in labor productivity generates positive growth effects only if the demand for tourism is elastic, otherwise negative results arise. (C) 2017 Elsevier Ltd. All rights reserved.
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