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Substitutes or Complements? Evidence of the Relationship Between Air and Cruise Tourism

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This article estimates the relationship between cruise and air tourism and their impact on economic growth in the Caribbean. To this end, we assemble a monthly data set of cruise and air tourist arrivals and a satellite-derived economic wealth proxy for 21 Caribbean islands over the period 2000‐2013. The estimates from a panel vector autoregression model not only demonstrate that cruise and air tourism are substitutes but it is the former for which this effect appears to be more permanent. Further, our analysis shows that while air tourism has a more immediate economic impact, cruise tourism has more long-term economic benefits. Our findings highlight the need for implementing policies to increase the value of cruise tourism to local economies as well as the effective management of revenue generation.

Keywords: AIR TOURISM; CARIBBEAN; COMPLEMENTARITY; CRUISE TOURISM; ECONOMIC IMPACT; SUBSTITUTION

Document Type: Research Article

Affiliations: 1: Department of Economics, University of the West Indies, Jamaica 2: Department of Economics, University of Bern, Switzerland 3: World Bank, World Bank???s Prospects Group 4: Royal Bank Caribbean, Trinidad & Tobago

Publication date: March 5, 2024

This article was made available online on September 16, 2023 as a Fast Track article with title: "SUBSTITUTES OR COMPLEMENTS? EVIDENCE OF THE RELATIONSHIP BETWEEN AIR AND CRUISE TOURISM ".

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  • 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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