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Have Low-Cost Carriers Influenced Tourism Demand and Supply? The Case of Alghero, Italy

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This article analyzes how the introduction of low-cost carriers has influenced tourism activity in a European destination, namely the town of Alghero (Italy). This can be addressed via a multiple stage approach. Firstly, a descriptive analysis highlights the dynamics of tourism demand and supply in the past three decades. Secondly, a seasonal autoregressive integrated moving average (SARIMA) model with intervention variables is employed to highlight the influence that low-cost flights have had on the town of Alghero. Finally, the relationship between demand and supply is analyzed via a Granger test. The findings indicate that low-cost carriers have influenced both domestic and international tourism demand, albeit to differing degrees. The article offers policy direction on how tourism infrastructures should be developed according to an economic and environmental sustainability perspective.

Keywords: LOW-COST CARRIERS; SEASONAL AUTOREGRESSIVE INTEGRATED MOVING AVERAGE (SARIMA); TOURISM DEMAND AND SUPPLY; URBAN POLICY

Document Type: Research Article

Publication date: 01 December 2010

More about this publication?
  • Established in 1996, Tourism Analysis is an interdisciplinary journal that provides a platform for exchanging ideas and research in tourism and related fields. The journal aims to publish articles that explore a broad range of research subjects, including, but not limited to, the social, economic, cultural, environmental, and psychological aspects of tourism, consumer behavior in tourism, sustainable and responsible tourism, and effective operations, marketing, and management.

    Tourism Analysis focuses on both theoretical and applied research and strives to promote innovative approaches to understanding the complex and dynamic nature of tourism, its stakeholders, businesses, and its effects on society. The journal welcomes articles on innovative research topics and methodologies beyond the traditional theory-testing sciences, such as robotics, computational sciences, and data analytics.

    Our primary goal is to contribute to the development and advancement of new knowledge in tourism while fostering critical reflections and debates on the radical changes and evolution in tourism among scholars, practitioners, policymakers, and other stakeholders.
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