On the economic rationality of fluctuations in tourism frequentation at nature-based destination Report as inadecuate




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Abstract

The aim of this paper is to answer a simple question: Are fluctuations, and especially temporary decline, in frequentation always harmful for the pro�t of a tourism destination?I propose a simple model for a nature-based destination, in which the willingness to pay of a tourist for the destination depends on the stock of natural assets, and I show using simulations that there exists a rational economic incentive to experience a decrease in frequentationfor a while in order to let the stock of natural assets regenerates. This is an idea already emphasized by Greiner et al. 2001 and Kort et al.2002.I show that anyway the optimal behavior of a pro�fit-maximizing representative tourism �firm would generally lead to a monotonic frequentation path. This apparent contradiction is due to the fact that the level of frequentation is not, in the real world, set at its optimallevel. Yet it could be good news if at some point, when the stock of natural assets is low, frequentation declines for a while.



Item Type: MPRA Paper -

Original Title: On the economic rationality of fluctuations in tourism frequentation at nature-based destination-

Language: English-

Keywords: Tourism, Willingness to Pay, Fluctuations-

Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population GrowthO - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary ProductsL - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism-





Author: Giannoni, Sauveur

Source: https://mpra.ub.uni-muenchen.de/29518/







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