Tourism and Territorial Differentiation: An Analysis of the Competitiveness and Sustainability of Tourism


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PhD thesis approved in December 2012 (University of Algarve, Portugal)

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Tourism and Territorial Differentiation: An Analysis of the Competitiveness and Sustainability of Tourism

  1. 1. Tourism  and  Territorial  Differen1a1on:     An  Analysis  of  the  Compe11veness     and  Sustainability  of  Tourism       JOÃO  ROMÃO         Supervisors:    Paulo  M.  M.  Rodrigues   João  Pinto  Guerreiro    PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  2. 2. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   1.  Objec1ves,  Achievements  and  Contribu1ons     2.  Conceptual  Framework   Regional  Tourism  System   Innova=on  and  Differen=a=on   Compe==veness  and  Sustainability   Tourism  Area  Life  Cycle     3.  Panel  Data  Model   Methodology  (data,  variables  and  model)   Results     4.  Discussion   Conclusions  and  Proposals   Limits  and  Developments   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  3. 3. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   1.  Objec1ves,  Achievements  and  Contribu1ons   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  4. 4. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  The  main  purpose  of  this  work  is  to  propose  an  integrated  approach     to  compe11veness  and  sustainability  in  tourism,   es1ma1ng  the  impacts  of  factors  related  to  sustainability     on  the  regional  tourism  compe11veness  through  innova1ve  ac1vi1es  based  on  natural  and  cultural  resources   that  differen1ate  the  des1na1ons.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  5. 5. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Development  of  a  regional  tourism  demand  func1on,   based  on  a  panel-­‐data  model,   integra1ng  ques1ons  related  to  sustainability   as  new  determinants  of  compe11veness.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  6. 6. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Applica1on  of  the  Tourism  Area  Life  Cycle  model     in  order  to  analyse  regional  tourism  compe11veness     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  7. 7. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Analysis  of  the  implica1ons  of  tourism  compe11veness     on  sustainable  regional  development.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  8. 8. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Analysis  of  the  the  rela1ons  between     regional  innova1on  systems  and  tourism  compe11veness.   Romão,  J.,  Guerreiro,  J.  and  Rodrigues,  P.  (2012)   Innova=ve  Integra=on  in  Tourism,     Discussion  Papers  -­‐  Spa0al  and  Organiza0onal   Dynamics,  CIEO,  University  of  Algarve   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  9. 9. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   4  ar%cles  as  a  result  of  this  disserta%on:   Romão,  J.,  Guerreiro,  J.  and  Rodrigues,  P.  (2013)  Compe11veness  and  Sustainability  in   Tourism  Des1na1ons,  in  Ma=as,  Nijkamp  and  Sarmento  (eds)  Quan0ta0ve  Methods  in   Tourism  Economics,  Springer-­‐Verlag  Berlin  Heidelberg     Romão,  J.,  Guerreiro,  J.  and  Rodrigues,  P.  (2012)  Tourism  Area  Life-­‐Cycle  and  Regional   Tourism  AUrac1veness,  Current  Issues  on  Tourism     Romão,  J.,  Guerreiro,  J.  and  Rodrigues,  P.  (2012)  Regional  Tourism  Development:   Compe11veness  and  Sustainability,  in  Jafari,  Fayos-­‐Solá  and  Silva  (eds)  Knowledge   Management  in  Tourism:  Policy  and  Governance  Applica0ons  -­‐  Bridging  Theory  and   Prac0ce  Vol.  IV,  55-­‐75,  UNWTO,  Emerald       Romão,  J.,  Guerreiro,  J.  and  Rodrigues,  P.  (2012)  Innova1ve  Integra1on  in  Tourism,   Discussion  Papers  -­‐  Spa0al  and  Organiza0onal  Dynamics,  CIEO,  University  of  Algarve   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  10. 10. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   6  communica%ons  as  a  result  of  this  disserta%on:   Local  Resources,  Differen1a1on  and  Innova1on  in  Tourism   Workshop,  Centre  for  Advanced  Tourism  Studies,  Hokkaido  University,  Sapporo,  Japan  (2012)     Tourism  Area  Life-­‐Cycle  and  Regional  Tourism  AUrac1veness   Interna=onal  Conference  on  Tourism  &  Management  Studies,  Faro,  Portugal  (2011)     Territory,  Innova1on  and  Differen1a1on  in  Tourism   Hospitality  and  Tourism  Marke=ng  and  Management,  Washington  State  University  and   Bogazici  University,  Istanbul,  Turkey  (2011)       Regional  Tourism  Development:  Innova1on,  Compe11veness  and  Sustainability   Tourism  and  Science:  Bridging  theory  and  prac=ce,  UNWTO  and  University  of  Algarve,   Vilamoura,  Portugal  (2011)       Compe11veness  and  Sustainability  in  Tourism  Des1na1ons   Advances  in  Tourism  Economics,  APIDT,  Lisbon,  Portugal  (14-­‐04-­‐2011)       Sustainable  Tourism  and  Territorial  Differen1a1on   Cluster  2,  NECTAR,  Rome,  Italy  (22-­‐10-­‐2010)     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  11. 11. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   4  other  ar%cles  on  Tourism  issues:   Romão,  J.,  Neuts,  B.,  Nijkamp,  P.,  Leeuwen,  E.S.  van  (2013)  Tourist  Loyalty  and  e-­‐ Services:  A  Comparison  of  Behavioural  Impacts  in  Leipzig  and  Amsterdam  [submi`ed]     Romão,  J.,  Neuts,  B.,  Nijkamp,  P.,  Leeuwen,  E.S.  van  (2013)  Urban  Tourist  Complexes  as   Mul1-­‐Product  Companies:  Market  Segmenta1on  and  Product  Differen1a1on  in   Amsterdam,  Tourism  Management  [re-­‐submi`ed  aber  peer-­‐review]     Neuts,  B.,  Romão,  J.,  Nijkamp,  P.,  Leeuwen,  E.S.  van  (2013)  Modelling  the  Complex   Components  of  Tourist  Loyalty,  in  Ma=as,  Nijkamp  and  Sarmento  (eds)  Advances  in   Tourism  Economics,  Springer-­‐Verlag  [approved]     Neuts,  B.,  Romão,  J.,  Nijkamp,  P.,  Leeuwen,  E.S.  van  (2013)  Digital  des1na1ons  in  the   tourist  sector:  a  path  model  for  the  impact  of  e-­‐services  on  tourist  expenditures  in   Amsterdam,  LeMers  in  Spa0al  and  Resource  Sciences  [approved]   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  12. 12. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Ar%cle  on  Sustainability:   Romão,  J.,  Nijkamp,  P.,  Leeuwen,  E.S.  van,  Kour=t,  K.,  Ozasa,  T.  and  Komatsu,  M.  (2013)   Designing  a  Sustainable  University  Campus:  A  Mul1-­‐Criteria  Assessment  of  Value-­‐ based  Metrics  through  Living  Lab  Images  [submi`ed]       Communica%on  presented  at:     Interna1onal  Symposium  on  Crea1on  of  Sustainable  Campuses  (2012)     Hokkaido  University,  Sapporo,  Japan   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  13. 13. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   2.  Conceptual  Framework   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  14. 14. Territorial  Differen1a1on,  Compe11veness  and  Sustainability  of  Tourism   João  Romão  –  João  Guerreiro  –  Paulo  Rodrigues  UNWTO  (2000)  defines  tourists  as    “people  who  travel  to  and  stay  in  places  outside  their  usual  environment    for  more  than  twenty-­‐four  (24)  hours  and  not  more  than  one  consecu1ve  year  for  leisure,  business  and  other  purposes    not  related  to  the  exercise  of  an  ac1vity  remunerated  from  within  the  place  visited”  (in  Vanhove,  2005)    This  defini1on  clearly  exposes  the  dynamic  character  of  tourism    (travelling  to  a  des1na1on  that  is  different  from  the  residence  place  of  the  tourist)  and  a  sta1c  dimension    (related  to  the  experiences,  services  and  products  used  by  tourists    while  staying  in  a  specific  des1na1on).      At  the  same  1me,  it  simultaneously  exposes  the  global    (related  to  global  markets  and  interna1onal  travels)    and  the  local  character  of  tourism    (related  to  the  specific  condi1ons  of  each  par1cular  des1na1on).   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  15. 15. Territorial  Differen1a1on,  Compe11veness  and  Sustainability  of  Tourism   João  Romão  –  João  Guerreiro  –  Paulo  Rodrigues  Des1na1on  and  Experience:    even  if  tourism  services  are  provided  by  a  large  number  of  companies,  tourists  perceive  des1na1ons  as  an  integrated  experience:    the  tourism  experience  is  a  result  of  mul1ple  products,  services  and  ac1vi1es  but  each  tourist  creates  his  own  image  of  a  des1na1on  aber  the  visit.      The  quality  of  the  tourism  experience  depends  on  the  sa1sfac1on    with  a  large  set  of  products  and  services  provided  in  each  des1na1on    and  can  vary  with  the  characteris1cs,  expecta1ons  and  mo1va1ons  of  each  tourist.        Tourism  des1na1ons  are  heterogeneous    mul1-­‐product,  mul1-­‐client  business  organiza1ons   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  16. 16. Territorial  Differen1a1on,  Compe11veness  and  Sustainability  of  Tourism   João  Romão  –  João  Guerreiro  –  Paulo  Rodrigues  Innova1on  in  tourism  results  from  all  the  interac1ons  between  companies,    among  firms  and  costumers  (taking  benefits  from  the  increasing  interac1vity),  technological  developments  resul1ng  from  the  coopera1on  between  tourism  companies  and  R&D  ins1tu1ons  or  even  from  from  outside  the  tourism  sector    (like  the  developments  of  informa1on  and  communica1on  technologies)    As  tourism  supply  is  becoming  increasingly  complex  and  using  technologically  sophis1cated  means  of  communica1on,  tourism  is  an  increasingly  knowledge  based  ac1vity  globally  distributed,  where  innova1ons  have  a  global  diffusion.       Computer  Reserva1on  Systems  Global  Distribu1on  Systems     Geographical  Informa1on  Systems  Infography  and  design  Interac1ve  sobware     Massifica1on  of  the  internet    Massifica1on  of  mobile  phones  Web  2.0     Personalized  the  processes  of  communica1on    Costumer  Rela1on  Management     Media1za1on  of  tourism  and  tourist  informa1on  produced  by  tourists   Personal  blogs  Photography  and  video  websites       PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  17. 17. Territorial  Differen1a1on,  Compe11veness  and  Sustainability  of  Tourism   João  Romão  –  João  Guerreiro  –  Paulo  Rodrigues  The  processes  of  innova1on  based  on  local  specific  resources  cannot  be  imitated    and  they  definitely  can  contribute  to  the  differen1a1on  of  a  tourism  des1na1on.      Local  interac1on  between  producers  and  consumers  in  a  territory  enhances    the  importance  of  local  and  regional  innova1on  networks  for  tourism:  co-­‐terminality  of  produc1on  and  consump1on,    temporality  (produc1on  and  consump1on  occur  at  the  same  1me)    and  spa1ality  (consump1on  must  occur  in  the  place  where  services  are  produced)  imply  that  costumers  act  as  “co-­‐creators”  in  the  innova1on  process.    Tacit  knowledge  is  par1cularly  important  for  innova1on:  -­‐  necessary  to  codify  explicit  knowledge  -­‐  difficul1es  to  be  imitated    -­‐  larger  impacts  on  compe11veness.     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  18. 18. Territorial  Differen1a1on,  Compe11veness  and  Sustainability  of  Tourism   João  Romão  –  João  Guerreiro  –  Paulo  Rodrigues  The  differen1a1on  of  tourism  des1na1ons  ensuring  its  aUrac1veness  in  the  long-­‐run  depends  on  the  development  of  innova1ve  products  and  services    related  to  the  natural  and  cultural  characteris1cs  of  the  territory.      Monopolis1c  compe11on  with  other  des1na1ons,    based  on  differen1a1on  instead  of  a  cost-­‐leadership  compe11on,    leads  to  higher  posi1ve  impacts  on  the  local  economies    and  smaller  nega1ve  impacts  on  natural  and  cultural  resources.    Usage  of  local  natural  and  cultural  resources  for  tourism  ac1vi1es  must  consider  their  preserva1on  in  the  long  run  (pressure  on  degrada1on  and  limits  to  their  usage)  and  their  value  for  local  communi1es  (right  to  take  benefit  of  local  resources).      High  level  of  involvement  of  local  stakeholders  is  required,    in  order  to  avoid  a  path  “from  euphoria  to  antagonism”  (Doxey,  1976)    or  “from  euphoria  to  xenophobia”  (Wall  and  Mathieson,  2006)    in  the  way  that  local  communi1es  perceive  the  presence  of  tourists.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  19. 19. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Innova1on  in  Tourism   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  20. 20. Territorial  Differen1a1on,  Compe11veness  and  Sustainability  of  Tourism   João  Romão  –  João  Guerreiro  –  Paulo  Rodrigues   In  the  long  run,  compe11veness  of  tourism  des1na1ons     is  linked  to  their  sustainability.      In  order  to  sustain  the  characteris1cs  that  guarantee  aUrac1veness,    local  natural  and  cultural  aspects  must  be  included  in  the  tourism  supply,    crea1ng  a  differen1ate  product.       Des1na1ons  are  the  core  element  of  the  compe11on     and  experience  is  the  fundamental  product  in  tourism.    There  is  a  clear  meaning  for  the  firm  compe==veness  but  the  same  does  not  happen  when  regional  compe==veness  is  discussed  (Hall,  2007).    Compe==veness  should  not  be  applied  to  na=onal  economies  (Krugman,  1994).       PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  21. 21. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   The  usage  of  natural  and  cultural  resources     to  create  innova1ve  products  and  services     implies  an  adequate  management     that  ensures  their  sustainability:   Management   Sustainability   Natural  and   Cultural   Compe==veness   Resources   Innova=on   Differen=a=on   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  22. 22. Territorial  Differen1a1on,  Compe11veness  and  Sustainability  of  Tourism   João  Romão  –  João  Guerreiro  –  Paulo  Rodrigues  “what  makes  a  tourism  des1na1on  truly  compe11ve  is  its  ability    to  increase  tourism  expenditure,    to  increasingly  aUract  visitors  while  providing  them  with  sa1sfying  experiences,    and  to  do  so  in  a  profitable  way,    while  enhancing  the  well-­‐being  of  des1na1on  residents    and  preserving  the  natural  capital  of  the  des1na1ons  for  future  genera1ons”.    Ritchie  and  Crouch,  2003    This  defini1on  makes  explicit  reference  to  the  ideas  of:    growth  (increasing  revenues  and  visitors),    sa1sfac1on  of  consumers  (sa1sfying  experiences),    posi1ve  consequences  on  the  local  communi1es  (well-­‐being  of  residents),  preserva1on  of  local  resources  (preserving  natural  capital)    and  1me  (future  genera1ons)    “Compe11veness  is  illusory  without  sustainability.    Indeed,  in  our  view  the  phrase,  sustainable  compe11veness,  is  tautological”.    Ritchie  and  Crouch,  2000   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  23. 23. Territorial  Differen1a1on,  Compe11veness  and  Sustainability  of  Tourism   João  Romão  –  João  Guerreiro  –  Paulo  Rodrigues  Common  output  indicators  for  compe11veness  in  tourism  are:  the  number  of  arrivals  to  des1na1ons,  the  number  of  tourists  who  repeat  the  visit,  the  number  of  nights  in  local  accommoda1on  services,  market  shares,    produc1vity  or  the  revenues  generated  by  tourism  ac1vi1es.      From  the  input  side,  regarding  the  factors  influencing  competi1veness,  there  is  a  wide  range  of  possibili1es  considered  in  the  literature:    Kozak  (1999)  Dwyer  and  Kim  (2003)  Ritchie  and  Crouch  (2003)  Vanhove  (2005)    Mazanek  (2007)  Navickas  and  Malakauskaite  (2009)  Tsai  (2009)    ”A  des=na=on  is  not  compe==ve  in  abstract  terms  but  against  relevant  compe=ng  des=na=ons;  in  order  to  evaluate  compe==veness,  it  is  necessary  to  understand  which  are  the  compe==ve  des=na=ons”  (Enright  and  Newton,  2005)    Management  and  tourism  development  policies  cannot  be  defined  in  abstract  and  in  generalized  ways,  but  must  be  adequate  to  the  specific  condi=ons  of  each  des=na=on:  universal  policy  and  managerial  recommenda=ons  can  lead  to  relevant  and  unwanted  nega=ve  consequences  (Enright  and  Newton,  2005)   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  24. 24. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   The  TALC  model   (Butler,  1980)   defines  a  standard   for  the  evolu=on  of   tourism  des=na=ons   with  five  stages   (involvement,   explora=on,   development,   consolida=on  and   stagna=on)     Considering  the   limited  period   under  analysis     (six  years),     a  simplified  version   of  the  model  has   been  chosen,     with  3  stages.     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  25. 25. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   The  posi1on  of  each  region  was  iden1fied  in  two  steps:     The  growth  rate  of  nights  spent  by  tourists  in  each  region     in  the  period  2003  –  2008  allows  the  iden1fica1on     of  regions  with  high  rates  of  growth  (>2,5%  per  year).       As  it  is  assumed  that  the  development  stage  of  a  tourism  area     is  characterized  by  high  rates  of  growth  in  tourism  demand,     all  these  regions  are  posi1oned  in  the  “Development”  stage;     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  26. 26. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  For  the  regions  with  low  (or  nega1ve)  rates  of  growth,    the  level  of  specializa1on  was  calculated  using  a  Loca1on  Quo1ent    related  to  the  employment  in  hotels  and  restaurants    (dividing  the  weight  of  employment  in  hotels  and  restaurants  in  each  region    by  the  weight  of  employment  in  hotels  and  restaurants  in  all  the  regions).    As  it  assumed  that  the  evolu1on  along  the  different  stages  is  characterized  by  an  increasing  importance  of  economic  ac1vi1es  related  to  tourism,  regions  with  higher  specializa1on  in  tourism  ac1vi1es  were  posi1oned  in  the  “Stagna1on”  stage  (meaning  that  tourism  is  economically  important  but  growth  rates  are  low)    and  regions  less  specialized  in  tourism  were  classified  in  the  “Explora1on”  stage  (meaning  that  tourism  is  economically  less  important  but  growth  rates  are  high).   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  27. 27. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   In  this  study,  the  specific  situa1on  of  each  region  has  been  considered  including  aspects   related  to  Geography  and  History  (posi1on  in  the  Tourism  Area  Life  Cycle)     Geography:  Inland,  West  Coast  (Atlan1c)  and  South  Coast  (Mediterranean)   TALC:  Explora1on,  Development  and  Stagna1on   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  28. 28. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  According  to  the  TALC  model,  un1l  a  certain  moment,  the  growth  of  tourism  in  a  region  is  characterized  by  a  growing  involvement  of  local  communi1es  and  impacts  on  local  economies.  Aber  that  point,  overexploita1on  of  tourism  resources  creates  pressure  on  the  local  environment  or  the  resident’s  life  quality,  reducing  the  aUrac1veness  of  the  place.    This  general  tendency  is  not  equally  observed  in  all  the  des1na1ons:  each  stage  can  have  a  different  dura1on  in  different  des1na1ons,  which  results,  not  only  from  the  evolu1on  of  the  des1na1on  itself  but  it  is  also  related  to  the  compe11on  with  rival  and  similar  places  or  to  the  evolu1on  of  demand  and  issuing  markets.    The  model  does  not  have  an  universal  applica1on  and  the  iden1fica1on  and  measurability  of  these  stages  is  not  always  clear,  or  even  possible,  due  to  the  absence  of  informa1on.  The  regional  unit  considered  in  this  study  (NUTS  2)  is  not  a  tourism  des1na1on:  many  of  these  regions  include  different  tourism  products,  not  necessarily  in  the  same  stage  of  development.      Although  this  model  defines  a  unique  standard  of  evolu1on,  at  least  in  the  first  stages,    it  also  emphasizes  the  dynamic  and  evolving  character  of  tourism  des1na1ons.    The  model  helps  to  iden1fy  general  tendencies,  to  an1cipate  problems  and  opportuni1es    and  to  create  adap1ve  strategies  to  respond  to  the  evolu1on  of  tourism  ac1vity.     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  29. 29. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  “it  is  clear  that  a  simple  model  like  the  TALC  cannot  predict  in  detail  the  future  of  a  specific  des1na1on  engaged  in  the  global  compe11on  that  is  tourism  today.  (...)    This  is  a  func1on  of  the  increasing  number  of  opportuni1es  and  op1ons  available  to  holiday  makers  in  the  21st  century.  A  unidirec1onal  linear  model  is  rela1vely  unlikely  to  give  an  accurate  predic1on  of  the  future  of  a  complex  product  subject  to  rapid  change  and  great  compe11on”  Butler  (2009)      The  iden1fica1on  and  measurability  of  these  stages  is  not  always  clear,    or  even  possible,  due  to  the  absence  of  sta1s1cal  informa1on,    namely  on  the  first  stages  of  evolu1on  of  a  tourism  des1na1on.      Even  with  the  existence  of  limits  to  the  predic1ve  possibili1es  of  the  model    and  to  the  precise  iden1fica1on  of  each  stage  in  the  evolu1on  of  a  des1na1on,    the  TALC  model  is  clearly  a  useful  tool  to  understand  the  evolving  character    of  tourism  areas,  their  change,  development,  muta1ons  of  the  compe11ve  advantage  determinants,  economic  impacts  and  environmental  or  cultural  consequences,  not  only  on  the  tangible  local  assets  but  also  on  intangible  aspects  of  local  daily  life.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  30. 30. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  Since  the  dura1on  of  the  life  cycle  of  the  tourism  des1na1ons  considered  in  this  study  is  rela1vely  long  (organized  and  ins1tu1onalized  tourism  started  to  develop  in  the  second  half  of  the  XX  century  in  most  of  these  regions  but  other  forms  of  leisure  and  tourism  existed  already  before  that),    this  implies  that  the  dura1on  of  each  stage  considered  in  this  study  is  also  long,  which  means  that  regions  classified  in  the  same  stage  can  s1ll  show  important  differences  among  them.      Andalucía  (Spain)  is  a  region  with  a  long  tradi1on  in  tourism  ac1vi1es,    while  Azores  (Portugal)  or  Extremadura  (Spain)  have  a  much  more  recent  tradi1on.  However  all  of  them  are  classified  in  the  development  stage  as  a  result  of  the  high  growth  rates  of  tourism  demand  registered  in  these  years.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  31. 31. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   3.  Panel  Data  Model   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  32. 32. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  This  work  analyses  how  the  regions  (NUTS  2)  of  south-­‐west  Europe    are  incorpora1ng  their  natural  and  cultural  resources  in  order  to  reinforce  their  aUrac1veness,  using  a  panel-­‐data  model  to  es1mate  a  regional  demand  func1on  (for  2003  –  2008)    that  incorporates  new  and  tradi1onal  factors  of  tourism  compe11veness.    67  regions  were  analysed    (17  in  Spain,  22  in  France,    21  in  Italy;  7  in  Portugal).    NUTS  2  regions  are  the  unit  of  analysis  considering  the  availability  of  comparable  data  and  the  existence  of  ins=tu=ons    related  to  economic  development,    cultural  and  natural  resources  management  and  tourist  promo=on.    Nevertheless,  these  regions  can  include  different  tourism  des1na1ons  and  products.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  33. 33. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   The  posi1ons  of  these  coun1es  in  the  Travel  and  Tourism  Compe11veness   Index  are  clearly  above  their  posi1ons  in  the  Global  Compe11veness  Index   (World  Economic  Forum,  2008)   Tourism     Global   Compe11veness   Compe11veness   Spain   5   29   France   10   16   Portugal   15   43   Italy   28   49   In  2008,  these  countries  registered  48,5%  of  the  nights  spent   in  European  hotels  and  similar  establishments.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  34. 34. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   The  dependent  variable  in  this  model  is  the  number  of  nights  spent  by  tourists   in  hotels  and  similar  establishments  in  each  region,     which  we  assumed  to  be  a  proxy  to  regional  tourism  compe11veness.     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  35. 35. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  10  regions  represent  50%  of  the  overall  number  of  nights  in  hotels  and  similar  establishments.   Nights in Hotels Annual Growth Nights in Hotels % Acum. % Açores (PT) 6,6 Canarias (SP) 7,8 7,8 Com. de Madrid (SP) 6,6 Ile de France (FR) 6,2 14,0 Lisboa (PT) 6,4 Calatuña (SP) 5,8 19,7 Lazio (IT) 5,7 Illes Balears (SP) 5,5 25,3 Aragón (SP) 5,4 Veneto (IT) 5,5 30,8 Castilla-Mancha (SP) 5,3 Andalucia (SP) 5 35,8 Piemonte (IT) 5,3 Toscana (IT) 3,8 39,6 Extremadura (SP) 5,1 Emilia-Romagna (IT) 3,5 43,1 Castilla León (SP) 4,9 Com. Valenciana (SP) 3,5 46,6 País Vasco (SP) 4,7 Prov-Alp-C. d’Azur (FR 3,2 49,8 Centro (PT) 4,4 La Rioja (SP) 4,3 It  is  possible  to  iden1fy  the  importance     Navarra (SP) 4,1 of  the  capital  ci1es,     sugges1ng  the  growing  relevance     of  urban  and  cultural  tourism.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  36. 36. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   New  factors  of   compe11veness:   It  is  assumed  that  local   natural  and  cultural  assets   are  the  basis  for  the   differen1a1on  of  tourism   des1na1ons  according  to   the  characteris1cs  of  the   territory  but  it  is  also   important  to  no1ce  that   availability  of  these  assets   does  not  necessarily  mean   that  they  are  exploited  as   tourism  resources:  it   means  that  such  poten1al   exists  at  the  regional  level   and  that  their  exploita1on   The  model  also  considers  some     implies  an  effort  for  the   development  of  innova1ve   Tradi1onal  factors  of  compe11veness     products  and  services.   (aspects  related  to  economic  condi1ons  and  infrastructures)   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  37. 37. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   The  new  factors     that  determine  the   compe11veness     of  tourism  des1na1ons   include  local  specific   resources  related  to   nature  and  culture.  These  resources  are  considered  as  a  poten1al  (not  necessarily  as  tourism  products).   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  38. 38. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Regional  efforts  on  innova1on  are  considered  in  the  model  under  the  assump1on     that  those  local  specific  poten1ali1es  require  innova1ve  efforts  at  regional  level     in  order  to  contribute  to  differen1ate  des1na1ons.     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  39. 39. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Some  tradi1onal  factors  of  compe11veness  were  also  considered:     economic  condi1ons  (investment  in  hotels  and  restaurants;  evolu1on  of  GDP  in  na1onal   markets  and  at  UE15,  as  the  main  interna1onal  market)     performance  of  rival  des1na1ons  in  south-­‐east  European  countries   (number  of  nights  in  hotels  from  Turkey,  Greece,  Croa1a  and  Cyprus)     infrastructures  (accommoda1on  and  existence  of  interna1onal  airports)   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  40. 40. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Geography  and  History:     The  geographical  situa1on  of  each  region  and  its  posi1on  in  the  Tourism  Area  Life  Cycle     were  taken  into  considera1on  using  dummy  variables:     Inland,  West  –  Coast  and  South  –  Coast     Explora1on,  Development  and  Stagna1on   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  41. 41. Territorial  Differen1a1on,  Compe11veness  and  Sustainability  of  Tourism   João  Romão  –  João  Guerreiro  –  Paulo  Rodrigues   Panel  data  models  include  cross-­‐sec1onal  data  that  reflect  the  differences   among  regions  and  1me-­‐series  data  that  reflect  the  evolu1on  along  1me.    Aber  fiung  some  alterna1ve  regressions  and  transforma1ons  on  the  variables,    the  best  results  were  obtained  with  a  Pooling  Effects  Model    and  applying  logarithms  to  the  variables    “nights”,  “beds”,  “GDP”,  “GDP  EU15”,  “Invest”  and  “Rivals”.     In  a  Polling  Effects  Model,  there  are  no  unique  aUributes  of  individuals     or  universal  effects  along  1me.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  42. 42. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  The  final  model  was  expressed  as:      Lognights  it  =  ß0  +  ß1  logbeds  it  +  ß2  air  it  +  ß3  log  GDP  it  +  ß4  loginvest  it-­‐1+    ß5  ST  it  +  ß6  Heritage  it  +  ß7  Natura  it  +  ß8  GEO1  it  +  ß9  GEO2  it  +  ß10  TALC  1  it  +  ß11  TALC  2  it   Estimate St. Error t-value Pr(>|t|) Sign. Intercept 13,82722 1,19577 11,5635 <2,2e-16 0 Es1mators:   logbeds 0,70682 0,02825 25,0186 <2,2e-16 0 air 0,13708 0,04335 3,1619 0,00169 0,001 loginvest 0,23912 0,02206 10,8385 <2,2e-16 0 logGDPn -0,93440 0,12630 -7,3984 8,531e-13 0 ST 1,12374 0,22830 5,0099 8,272e-7 0 Heritage 0,02378 0,00939 2,7467 0,00630 0,001 Natura 0,68802 0,19776 3,4791 0,00056 0 Some  variables  were     not  sta1s1cally  relevant:   Geo1 -0,06182 0,03823 -1,6173 0,10661 0,1 “GDPUE15”;     Geo2 -0,29830 0,04416 -6,7558 5,184e-11 0 “Rivals”;   TALC1 -0,27510 0,04359 -6,3116 7,516e-10 0 “Educa1on”.   TALC2 -0,22706 0,04389 -5,1735 3,681e-7 0 PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  43. 43. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Descrip1ve  sta1s1cs    In  order  to  iden1fy  possible  problems  of  mul1collinearity  among  the  independent  variables,   a  VIF  (Variance  Infla1on  Factor)  test  has  been  calculated.     It  is    accepted  that  problems  of  mul1collinearity  can  be  relevant  when  VIF  is  above  10.     In  this  model,  the  VIF  test  presents  values  below  5  for  all  the  independent  variables.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  44. 44. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   As  the  model  includes  some  dummy  variables,  it  is  possible  to  organize  its  results     according  to  the  groups  that  result  from  those  variables,     which  have  different  independent  terms,     reflec1ng  different  overall  impacts  of  the  independent  variables     on  the  regional  tourism  demand  in  each  group.       Generally,  these  impacts  are  higher  in  the  South  Coast  regions  and  lower  in  the  West  Coast.     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  45. 45. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   4.  Discussion   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  46. 46. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   The  posi1ve  impact  of  new  factors  of  compe11veness   detected  by  this  model  is     the  most  important  result  of  its  applica1on.     It  was  possible  to  observe  that     natural  resources,     heritage  assets     and  regional  efforts  on  innova1on     are  posi1vely  related  with  regional  tourism  compe11veness.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  47. 47. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   The  results  also  show  an  expected  posi1ve  correla1on  between   the  existence  of  infrastructures  (beds  and  airports),     investment  in  hotels  and  restaurants     and  the  regional  tourism  compe11veness.       The  nega1ve  correla1on  found     between  the  nights  spent  in  a  region  and  its  na1onal  GDP     suggests  that  countries  where  tourism  is  more  important     are  economically  less  developed,     implying  that  this  variable  was  not  relevant     to  iden1fy  the  influence  of  the  evolu1on     of  na1onal  economic  condi1ons  on  the  domes1c  tourism  demand.     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  48. 48. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  Tourism  development  policies  require  coordina1on  among  different  management  ins1tu1ons,   namely  those  related  to  economic  development,  promo1on  of  innova1on,     tourism  des1na1on  management,  environmental  protec1on  or  cultural  promo1on.       In  order  to  ensure  that  these  processes  effec1vely  benefit  local  popula1ons,     local  stakeholders  should  necessarily  be  involved.     According  to  these  principles,  ins1tu1onal  coordina1on  is  a  major  challenge     for  tourism  development  based  on  local  and  natural  assets,     considering  the  need  to  involve  a  large  set  of  private  companies  and  public  en11es,   frequently  with  different  perspec1ves  and  objec1ves,    in  the  processes  of  tourism  development  planning.     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  49. 49. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  For  des1na1ons  in  the  earlier  stages  of  their  life  cycle  (explora1on),  it  is  important  to  create  adequate  infrastructures,  develop  new  services,  guarantee  a  good  level  of  qualifica1ons  of  the  workers  (namely  with  knowledge  of  different  languages),  iden1fy  poten1al  markets  and  implement  adequate  promo1onal  strategies.  Sustainable  development  and  long-­‐term  advantages  will  be  easier  to  reach  if  carrying  capacity  of  local  resources  is  considered  since  the  beginning  (with  an  adequate  process  of  land-­‐use  planning),  the  involvement  of  local  stakeholders  is  ensured  and  ins1tu1onal  coordina1on  is  promoted.      For  the  regions  in    the  “development”  stage,  it  is  important  to  control  the  excessive  pressure  on  the  territory  resul1ng  from  poten1al  excessive  demand  (at  least  in  some  periods  of  the  year),  develop  alterna1ve  products  and  services  in  order  to  avoid  seasonality  and  try  to  improve  the  quality  of  the  experience  offered  by  the  des1na1on,  through  an  improvement  of  the  products  and  services  locally  provided.  Increasing  value  added  in  local  supply  becomes  more  important  than  increasing  the  number  of  visitors.    For  the  regions  in  the  late  stages  of  the  life-­‐cycle  (like  stagna1on),  new  products  or  new  markets  are  essen1al  for  tourism  development  but,  considering  the  extreme  global  compe11on  among  tourism  des1na1ons,  it  is  also  important  that  those  local  resources  have  not  been  destroyed  by  an  excessive  usage  in  the  previous  stages.  In  this  stage,  the  priori1es  should  focus  on  the  reposi1oning  of  tourism  supply,  crea1ng  and  promo1ng  new  products  and  services,  based  in  new  approaches  to  local  specific  resources.     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  50. 50. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  Limits  and  developments:    Regional  Unit:  NUTS  2  regions  as  the  unit  of  analysis  can  hide  some  possible  intra-­‐regional  differences  related  to  different  tourism  products  developed  inside  the  same  region,  eventually  with  different  posi=ons  in  their  life  cycles.    Further  developments  of  this  work  can  include  a  shib  in  the  scale  of  analysis,  for  example  using  data  for  NUTS  3  regions,  if  there  is  enough  informa=on  on  the  relevant  topics.      Period  and  Territory:  This  study  took  into  considera=on  a  period  of  six  years,  ending  in  2008.  Aber  that,  an  important  interna=onal  economic  crisis  with  deep  implica=ons  on  the  revenues  and  the  behavior  of  consumers  at  the  global  level  occurred,  with  relevant  nega=ve  impacts  on  tourism.    Enlarging  the  number  of  regions  and  the  period  under  analysis,  including  the  most  recent  years,  could  contribute  to  iden=fy  different  impacts  of  economic  crisis  on  tourism  des=na=ons  and  to  compare  the  evolu=on  of  the  a`rac=veness  in  tourism  regions  with  different  characteris=cs.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  51. 51. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  Markets:  Including  some  explanatory  variables  related  to  the  rela=ve  importance  of  each  market  for  each  des=na=on  (and  their  specific  evolu=on  in  the  context  of  this  economic  crisis  and  recovery)  can  also  increase  the  predic=ve  capability  of  the  model.  In  the  same  sense,  it  may  be  important  to  include  in  the  model  informa=on  related  to  produc=on  costs  (although  there  is  a  very  relevant  part  of  tourism  expenses  which  is  not  controlled  at  the  regional  level).    Ins1tu1ons:  The  considera=on  of  aspects  related  to  des=na=on  management  and  promo=on,  ins=tu=onal  organiza=on  or  involvement  of  local  communi=es  in  the  process  of  tourism  development  is  extremely  important,  despite  the  difficulty  to  obtain  relevant  comparable  data.    Life  Cycle:  Indicators  related  to  the  resident’s  percep=ons  about  tourism  could  also  be  included  in  order  to  iden=fy  the  posi=on  of  each  region  in  the  Tourism  Area  Life  Cycle  model.  More  detailed  informa=on  about  the  first  and  last  stages  of  the  model  could  be  useful,  implying  the  considera=on  of  longer  periods.   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  52. 52. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism  Sustainability:  Cultural  and  natural  assets  were  taken  into  considera=on  as  locally  available  resources  but  it  would  surely  be  more  interes=ng  to  evaluate  them  as  tourism  products.  Ques=ons  related  to  carrying  capacity  and  the  possible  excessive  usage  of  natural  resources  or  commodifica=on  of  cultural  community  values  should  be  also  important  elements  to  consider,  despite  their  difficult  quan=fica=on  and  comparison  at  interna=onal  level.      Regional  and  Societal  Development:  “Social  sustainability”,  or  the  spreading  of  benefits  to  local  communi=es,  could  be  considered  including  indicators  like  the  regional  employment  in  tourism  ac=vi=es,  stability  of  jobs  or  wages.    Innova1on:  The  regional  processes  of  innova=on  can  also  be  analyses  in  more  detail,  in  order  to  try  to  iden=fy  the  regional  dynamics  of  innova=on  specifically  in  the  tourism  sector,  namely  when  it  is  related  to  the  usage  of  communica=on  and  informa=on  technologies  or  the  capacity  to  produce  new  technological  solu=ons  for  tourism  (considering  the  number  of  registered  patents  or  other  indicators)  and  their  impacts  on  regional  tourism  compe==veness.    Methodologies:  Other  sta=s=cal  tools  and  methodologies  could  be  applied  to  this  king  of  study,    such  as  Simultaneous  Equa=on  Models     PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012  
  53. 53. Tourism  and  Territorial  Differen1a1on:  An  Analysis  of  the  Compe11veness  and  Sustainability  of  Tourism   Thank  you  for  your  aUen1on   PhD  Program  in  Tourism  –  Faculty  of  Economics  –  University  of  Algarve  -­‐2012