CAN AIR TRANSPOR SUBSIDIES TO RESIDENTS AFFECTS TOURISM? EVIDENCE FROM SPANISH ARCHIPELAGOS

Location

Gran Canaria

Participation

Attend the conference at Gran Canaria in person.

Type of Submission

Paper Presentation

Short Abstract

Air transport subsidies to residents of remote destinations is a common policy in some countries. Most of the literature analyzing the impact of subsidies has focused on overall tourism demand. However, the effects of a subsidy in the tourism sector can not be limited to number of arrivals. Our study focusses on analyzing the effect of air transport subsidy in the tourism expenditure at destination by analyzing two different dimensions, daily expenditure and length of stay. As case study we analyze the outbound tourism to mainland Spain from the two Spanish archipelagos. We provide a difference-in-difference estimation to find the causal effect of the policy in both variables in the two Spanish archipelagos. We obtained heterogeneous results where daily expenditure was increased for Balearic tourists but there was no effect on the tourists from the Canaries. However, both types of tourist reduced on average their length of stay.

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CAN AIR TRANSPOR SUBSIDIES TO RESIDENTS AFFECTS TOURISM? EVIDENCE FROM SPANISH ARCHIPELAGOS

Gran Canaria

Air transport subsidies to residents of remote destinations is a common policy in some countries. Most of the literature analyzing the impact of subsidies has focused on overall tourism demand. However, the effects of a subsidy in the tourism sector can not be limited to number of arrivals. Our study focusses on analyzing the effect of air transport subsidy in the tourism expenditure at destination by analyzing two different dimensions, daily expenditure and length of stay. As case study we analyze the outbound tourism to mainland Spain from the two Spanish archipelagos. We provide a difference-in-difference estimation to find the causal effect of the policy in both variables in the two Spanish archipelagos. We obtained heterogeneous results where daily expenditure was increased for Balearic tourists but there was no effect on the tourists from the Canaries. However, both types of tourist reduced on average their length of stay.

https://docs.lib.purdue.edu/itsa/ITSA2022/ITSA2022/55