Research note: Does transport infrastructure matter in overall tourism development?
Evidence from a sample of island economies

Authors: Khadaroo, A.J.; Seetanah, B.

Source: Tourism Economics, Volume 13, Number 4, December 2007 , pp. 675-684(10)

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Abstract:

This paper focuses on investigating the importance of transportation infrastructure in the overall attractiveness of a destination. It extends a classical demand for international tourism function to include transport infrastructure, as measured by proxies of land and air transport, as additional and separate inputs in a panel data framework for the case of island economies. Due to the possibility of reputation effects in tourism, the study also employs dynamic panel data estimates for a sample of island economies. Results from the analysis show tourists are sensitive to both types of transport infrastructure. Disaggregated studies further show that this is more pronounced for top and renowned island destination cases. The study also confirms the existence of persistence effects and repeat tourism for the latter destinations.

Keywords: TOURISM DEVELOPMENT; TRANSPORT INFRASTRUCTURE; PANEL DATA; SMALL ISLAND ECONOMIES

Document Type: Research article

DOI: http://dx.doi.org/10.5367/000000007782696069

Publication date: 2007-12-01

More about this publication?

Tourism Economics, published bimonthly, is a peer-reviewed journal devoted to the economics and finance of tourism worldwide. Articles address the components of the tourism product (accommodation; restaurants; merchandizing; attractions; transport; entertainment; tourist activities); and the economic organization of tourism at micro and macro levels (market structure; role of public/private sectors; community interests; strategic planning; marketing; finance; economic development).
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