What Does Dynamics of Tourism Marketing Show in 12 Developing Countries?
Downloads
This study is motivated by the idea to what extent tourism marketing investment contributes to tourism demand expansion. It searches for better estimation methods that can deal with the inter-temporal and cross-section correlation of the disturbances. The effect of omitting the tourism marketing variable, as evidenced by the drastic change in long and short-run elasticity values for all tourism demand models, has emerged clearly. There is a need for the national tourism institutions to have a clear, consistent, and sustained investment policy in tourism marketing activities with respect to enhanced effectiveness in allocating financial resources.
Keywords: Tourism Marketing, 12 Developing Countries, Dynamic Panel, Elasticity Values, Omission of Tourism Marketing Variable.
JEL: Z33, C23,O50
Ahmed, Y.A. (2015). Analytical review of tourism demand studies from 1960 to 2014. International Journal of Science and Research, 4(1), 2421-2427.
AFDB. (2015). Africa tourism monitor: unlocking Africa's tourism potential. Africa Tourism Monitor, 3(1-October), Africa Development Bank, New York University.
AFDB. (2018). Africa tourism monitor: The high 5s-Tourism as a pathway to industrialization, integration, quality of life, agriculture, and powering up Africa. Africa Tourism Monitor, 5(1-July), Africa Development Bank, New York University.
Ajaguna, I., Pinnock, F., & Amode, T.M. (2017). Tourism development and logistics in the Caribbean: Will there be a symbiotic relationship? Worldwide Hospitality and Tourism Themes, 9(1), 116-123.
Association of Caribbean States. (2017). Meetings tourism: Conceptualization and regional vision. Directorate of Sustainable Tourism, Association of Caribbean States.
Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations, Review of Economic Studies 58, 277-297.
Artus, J.R. (1970). The effects of revaluation on the foreign travel balance of Germany. IMF Staff Papers, 19(3), 602-619.
Balestra, P., & Nerlove, M. (1966), Pooling cross-section and time-series data in the estimation of a dynamic model: The demand for natural gas, Econometrica34, 585-612.
Baltagi, B.H., & Levin, D. (1986), Estimating dynamic demand for cigarettes using panel data: The effects of bootlegging, taxation, and advertising reconsidered, Review of Economics and Statistics 68, 148-155.
Baltagi, B.H. (2013), Econometric Analysis of Panel Data. (5th Edition), John Wiley, New York.
Barry, K., & O'Hagan, J. (1972). An econometric study of British tourist expenditure in Ireland. Economic and Social Review, 3, 143-161.
Bonnett, J. (1982). Implications of marketing and promotion for the development of tourism. Tourism Management, 3(4), 242-247.
Brida, J.G., Cortćs-Jimenez, I., & Pulina, M. (2016). Has the tourism-led growth hypothesis been validated? A literature review. Current Issues in Tourism, 19(5), 394-430.
Brida, J.G., & Schubert, S.F. (2008). The economic effects of advertising on tourism demand. Economics Bulletin, 6(45), 1-16.
Brida, J.G., Pereyra, J.S., Such, M.J., & Zapata, S. (2008). Evaluating the contribution of tourism on economic growth. Anatolia: An International Journal of Tourism and Hospitality Research, 19(2), 351-357.
Buhalis, D. (2000). Marketing the competitive destination of the future. Tourism Management, 21(1), 97-116.
Buhalis, D. (2005). Information and communication technologies for tourism. In Pender, L., and Sharpley, R (Eds). The Management of Tourism, Sage, London, pp. 232-245.
Christie, I., Fernandez, E., Messerli, H., & Twining-Ward, L. (2014). Tourism in Africa: Harnessing tourism for growth and improved livelihoods. World Bank Report 81468, Washington, DC.
Clarke, C.P. (1978). An analysis of the determinants of demand for tourism in Barbados. Ph.D. dissertation, Fordham University.
Correia, A., & Kozak, M. (2010). Tourism behavior and marketing: An introduction. Journal of Hospitality Marketing and Management, 19(3), 199-202.
Croes, R. (2014). Tourism and poverty reduction in Latin America: Where does the region stand? Worldwide Hospitality and Tourism Themes, 6(3), 293-300.
Croes, R., & Rivera, M.A. (2017). Tourism's potential to benefit the poor: a SAM model applied to Ecuador. Tourism Economics, 23(1), 29-48.
Croes, R., & Vanegas, M. (2008). Tourism and poverty alleviation: A co-integration analysis. Journal of Travel Research 47, 94-103.
Croes, R., & Vanegas, M. (2005). An econometric study of tourist arrivals in Aruba and its implications. Tourism Management, 26, 879-890.
Crouch, G. I. (1994). The study of international tourism demand: a review of findings. Journal of Travel Research, 33(2), 12-23.
Crouch, G.I., Schultz, L., & Valerio, P. (1992). Marketing international tourism to Australia: a regression analysis. Tourism Management, 13, 196-208.
Crouch, G I., & Shaw, R. (1991). Determinants of international tourist flows: Findings from 30 years of empirical research. Paper presented at Tourism Research Workshop, September.
Dae-Young, K., Yeong-Hyeon, H., & Fesenmaier, R. (2005). Modeling tourism advertising effectiveness. Journal of Travel Research, 44(1), 42-49.
Divisekera, S., & Kulendran, N. (2006). Economic effects of advertising on tourism demand: a case study. Tourism Economics, 12(2), 187-205.
Donohoe, M.H. (2012). Sustainable heritage tourism marketing and Canadas Rideau canal world heritage site. Journal of Sustainable Tourism, 20(1), 121-142.
Doornik, J.A. & Hendry, D.F. (2001). Econometric Modelling Using PcGive, Volume III. London: Timberlake Consultants Ltd.
Eagle. L., Hamann, M., & Low, R.D. (2016). The role of social marketing, marine turtles and sustainable tourism in reducing plastic pollution. Marine Pollution Bulletin, 107, 324-332.
Esu, B.B., & Ebitu, E. (2010). Promoting an emerging tourism destination. Global Journal of Management and Business Research, 21, 21-27.
Fallon, G., & Schofield, T. (2006). The dynamics of destination attribute importance. Journal of Business Research, 59(6), 709-713.
Fayissa, B., Nsiah, C., & Tadasse, B. (2011). Tourism and economic growth in Latin American countries: Further empirical evidence. Tourism Economics, 16(6), 1365-1373.
Fayissa, B., Nsiah, C., & Tadasse, B. (2008). Impact of tourism on economic growth and development in Africa. Tourism Economics, 14(4), 807-818.
Garín-Muñoz, T. (2007). German demand for tourism in Spain. Tourism Management, 28(1), 12-22.
Government of the Republic of Kenya. (2013). Sector plan for tourism 2013-2017. Ministry of East African Affairs, Commerce and Tourism, Nairobi, Kenya.
Hartwell, H., Fyall, A., Willis, C., Page, S., Ladkin, A., & Hemingway, A. (2018). Progress in tourism and destination wellbeing research. Current Issues in Tourism, 21(16), 1830-1892.
Hinch. D.T., Higham, S.E.J., & Moyole, D.B. (2016). Sport tourism and sustainable destinations: foundations and pathways. Journal of Sport and Tourism, 20(3-4), 163-173.
Im, K., Pesaran, M., & Shin, Y. (2003). Testing for unit roots in heterogeneous panels, Journal of Econometrics, 115, 53-74.
Jamal, T., & Camargo, A.B. (2014). Sustainable tourism, justice and an ethic of care: Toward the just destination. Journal of Sustainable Tourism, 22(1), 11-30.
Jud, G.D., & Joseph, H. (1974). International demand for Latin American tourism. Growth and Change, 24-31 (January).
Kibara, O.N., Odhiambo, N.M., & Njuguma, J.M. (2012). Tourism and economic growth in Kenya: An empirical investigation. International Business and Economics Research Journal, 11(5), 517-528.
Kliman, M.L. (1981). A quantitative analysis of Canadian overseas tourism. Transportation Research, 15A, 487-497.
Kulendran, N., & Divisekera, S. (2007). Measuring the economic impact of Australian tourism marketing expenditure. Tourism Economics, 13(2), 261-274.
Kulendran, N., & Dwyer, L. (2009). Measuring the return from Australian tourism marketing expenditure in Asia. Journal of Travel Research, 47, 275-284. February.
Ledesma-Rodriguez, F.J., Navarro-Ibañez, M., & Perez-Rodriguez, J.V. (2001). Panel data and tourism: A case study of Tenerife. Tourism Economics, 7, 75-88.
Lim, C. (1997). Review of international tourism demand models. Annals of Tourism Research, 24(4), 835-849.
Liu, S.C., & Chou, S. (2016). Tourism strategy development and facilitation of integrative processes among brand equity, marketing and motivation. Tourism Management, 54, 298-308.
March, R. (1994). Tourism marketing myopia. Tourism Management, 15(6), 411-415.
Martin, C.A., & Witt, S.F. (1988). Substitute prices in models of tourism demand. Annals of Tourism Research, 15, 255-268.
Mazanec, A. J. (2005). Tourism research in a nutshell: The tourism knowledge map. Tourism Review, 60(3), 6-12.
Nerlove, M. (1958). Distributed lags and demand analysis for agricultural and other commodities. USDA. Agricultural Handbook No. 141, USDA: Washington, DC.
Nerlove, M., & Addison, W. (1958). Statistical estimation of long-run elasticities of supply and demand. American Journal of Agricultural Economics, 40(4), 861-880.
Nunkoo, R., Ramkissoon, H., & Gursoy, D. (2013). Use of structural equation modeling in tourism research: past, present, and future. Journal of Travel Research, 52(6), 759-771.
Okello, M., & Novelli, M. (2014). Tourism in the East African Community: challenges, opportunities, and ways forward. Tourism and Hospitality Research, 14(1-2), 55-60.
Onafowora, O., & Owowe, O. (2012). Modelling international tourism demand for the Caribbean. Tourism Economics, 18(1), 159-180.
Papadopoulos, S.J., & Witt, S.F. (1985). A marketing analysis of foreign tourism in Greece. In: S. Shaw, L. Sparks and E. Kaynak (eds), Marketing in the 1990s and beyond. Proceedings of the Second World Marketing Congress (University of Stirling), pp. 682-693.
Pedroni, P. (2000). Fully modified OLS for heterogeneous cointegrated panels. Advances in Econometrics, 15, 93-130.
Phillips, P.C.B., & Hansen, B.E. (1990). Statistical inference in instrumental variables regression with I(1) processes. Review of Economic Studies, 57, 99-125.
Saner, R., Yiu, L., & Filadoro, M. (2015). Tourism development in Least Developed countries: challenges and opportunities. In Angelo A Camillo (editor). Handbook of Research on Global Hospitality and Tourism Management, IGI Global Publishing, Penn, Chapter 13. pp. 234-261.
Scott, N., Laws, E., & Boksberger, P. (2009). The marketing of hospitality and leisure experiences. Journal of Hospitality Marketing and Management, 18(2), 99-110.
Seetanah, B. (2010). Assessing the role of marketing promotion in tourism development in a dynamic time series framework. Paper presented at the International Research Symposium in Service Management, Le Meridien Hotel, Mauritius, 24-27 August.
Seetanah, B., Durbarry, R., & Ragodoo, J.F.N. (2010). Using the panel cointegration approach to analyze the determinants of tourism demand in South Africa. Tourism Economics, 16(3), 715-729.
Seetanah, B., & Sannassee, R.V. (2015). Marketing promotion financing and tourism development: The case of Mauritius. Journal of Hospitality Marketing and Management, 24(2), 202-215.
Seetanah, B., Sannassee1, R.V., Teeroovengadum, V., & Nunkoo, R. (2019). Air access liberalization, marketing promotion and tourism development. International Journal of Tourism Research, 21(1), 76-86.
Signé, L., & Johnson, C. (2018). Africa's tourism potential: Trends, drivers, opportunities and strategies. Africa Growth Initiative Report, Brookings Institution, December.
Song, H., & Li, G. (2008). Tourism demand modelling and forecasting: A review of recent research. Tourism Management, 29(2), 203-220.
Song, H., Li, G., Witt, S.F., & Fei, B. (2010). Tourism demand modelling and forecasting: how should demand be measured? Tourism Economics, 16(1), 63-81.
The United Republic of Tanzania. (2002). Tourism master plan: Strategy and actions. CHL Consulting Group, Ministry of Natural Resources and Tourism.
Tourism Research Institute. (2018). Tourism Sector Performance Report 2018. Kenya Tourism Research Institute, Nairobi, Kenya.
UNCTAD. (2017). Economic development in Africa report 2017: Tourism for transformation and inclusive growth. United Nations Conference on Trade and Development, New York and Geneva.
UNCTAD. (2008). The LDCs report 2008: Growth, poverty and the terms of development partnership. United Nations Conference on Trade and Development, New York and Geneva.
UNWTO. (2021). United Nations World Tourism Barometer, 19(1). UNWTO, Madrid, Spain, January.
UNWTO. (2020). United Nations World Tourism Barometer, 18(1). UNWTO, Madrid, Spain, January.
UNWTO. (2019). International Tourism Highlights. Default Book Series. https://www.e-unwto.org/doi/abs/10.18111/9789284421152
UNWTO. (2015). Tourism in Africa: A tool for development. Affiliate Members Regional Reports, Volume four, United Nations World Tourism Organization, Madrid, Spain.
Uysal, M., & Crompton, J.L. (1984). Determinants of demand for international tourist flows in Turkey. Tourism Management, 11, 447-475.
Vanegas, M. (2018). An ARDL approach: How robust is Guatemala‘s international tourism demand? Tourism Review International, 21(2), 121-138.
Vanegas, M., Gartner, W.C., & Senauer, B. (2015). Tourism and poverty reduction: an economic sector analysis for Costa Rica and Nicaragua. Tourism Economics, 21(1), 159-182.
Vanegas, M. (2014). Aruba's marketing and promotion dynamics: The USA, Venezuela and the Netherlands origin markets. Study No. MV/03/14 prepared for Aruba Tourism Authority as a background paper for consultations on its marketing and promotion policy formulation with Aruba Tourism Authority, the Government and Aruba Hotel and Tourism Association, Oranjestad, Aruba, January-February.
Vanegas, M. (2013a). Co-integration and error correction estimation to forecast tourism in El Salvador. Journal of Travel and Tourism Marketing, 30(6), 523-537.
Vanegas, M. (2013b). Quantification of Aruba's relationships and responses between international tourism demand and marketing spending. Unpublished Background Marketing and Promotion Spending Study No. MV/09/13. Commissioned by Aruba Tourism Authority, Oranjestad, Aruba, December.
Vanegas, M. (2012). Tourism in El Salvador: Cointegration and causality analysis. Tourism Analysis, 17(3), 311-323.
Witt, S.F., & Martin, C.A. (1987). International tourism demand models-inclusion of marketing variables. Tourism Management, 8, 33-40.
Witt, S.F., & Witt, C.A. (1995). Forecasting tourism demand: A review of empirical research. International Journal of Forecasting, 11, 447-475.
World Bank (2011). Africa region tourism strategy: Transformation through tourism. World Bank, Washington DC.
World Bank (2010). Kenya's tourism: Polishing the jewel. World Bank Finance and Private Sector Development-African Region, Washington DC.
WTTC. (2020). Travel and tourism: Global economic impact and trends 2020. World Travel and Tourism Council, London, UK.
Ziliak, J. (1997). Efficient estimation with panel data when instruments are pre-determined: An empirical comparison of moment-condition estimation. Journal of Business and Economic Statistics, 15, 419-431.
Copyright (c) 2021 Manuel A Vanegas
This work is licensed under a Creative Commons Attribution 4.0 International License.
JDE (Journal of Developing Economies) (p-ISSN: 2541-1012; e-ISSN: 2528-2018) is licensed under a Creative Commons Attribution 4.0 International License
- The journal allows the author to hold the copyright of the article without restrictions.
- The journal allows the author(s) to retain publishing rights without restrictions
- The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution (CC BY)