CAN AIR TRANSPOR SUBSIDIES TO RESIDENTS AFFECTS TOURISM? EVIDENCE FROM SPANISH ARCHIPELAGOS
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.
Type of Submission
Paper Presentation
Location
Gran Canaria
Recommended Citation
Pérez-Granja, Ubay; Jiménez, Juan Luis; and Valido, Jorge, "CAN AIR TRANSPOR SUBSIDIES TO RESIDENTS AFFECTS TOURISM? EVIDENCE FROM SPANISH ARCHIPELAGOS" (2023). ITSA 2022 Gran Canaria - 9th Biennial Conference: Corporate Entrepreneurship and Global Tourism Strategies After Covid 19. 55.
https://docs.lib.purdue.edu/itsa/ITSA2022/ITSA2022/55
Participation
Attend the conference at Gran Canaria in person.
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
Comments
A full paper version of this research is currently under the second round of review in a journal indexed on the journal citation report (JCR). To avoid copyright problems, the title was changed and the fullbody of the extended abstract has been completely rewritten.