Comovement amongst the demand for New Zealand tourism

Vatsa, Puneet

doi:10.1016/j.annals.2020.102965

Cited by 10 publications

(9 citation statements)

References 74 publications

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“…In terms of networking and coopetition more specifically, firms (from around the world) with aspects of their business models associated with tourism and hospitality frequently collaborate (Crick et al , 2018; Czakon and Czernek, 2016; Czernek et al , 2017); not least, to promote their regional clusters, with the objective being to attract new and returning visitors. In the context of this current study, New Zealand is one of the more popular tourism and hospitality destinations in the world, with its positive reputation for supplying these offerings (Vasta, 2020). The key informants were the owner-managers of these businesses, having authority in decision-making needed to engage in coopetition and assess performance outcomes (see Crick and Crick, 2020); also, an entrepreneurial marketing orientation often being fostered by these individuals (Sadiku-Dushi et al , 2019).…”

Section: Methodsmentioning

confidence: 99%

The impact of the interaction between an entrepreneurial marketing orientation and coopetition on business performance

Crick

Karami

Crick

2021

IJEBR

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PurposeCertain small businesses do not possess the assets needed to implement a performance-enhancing entrepreneurial marketing orientation (opportunity-driven behaviours focussed on creating value for customers). Although some entrepreneurs cooperate with their competitors (coopetition) to achieve their day-to-day and long-term goals, it is unclear whether these partnerships are advantageous in this capacity. Thus, grounded in the resource-based view, the purpose of this investigation is to examine whether coopetition positively moderates the relationship between an entrepreneurial marketing orientation and financial performance.Design/methodology/approachSurvey responses were obtained from 184 small tourism and hospitality organisations in New Zealand. Following a series of robustness checks, covariance-based structural equation modelling was used to test the elements of the conceptual model.FindingsUnique insights illustrate an entrepreneurial marketing orientation yielding a negative and significant link with financial performance. Nevertheless, this result was potentially related to the entrepreneurial marketing-oriented opportunities that owner-managers pursued within the context of their sector; in particular, situations when employing an individualistic business model constrained certain decision-makers' ability to pursue “growth-oriented” objectives. However, coopetition produced a positive and significant moderating effect, enabling owner-managers to pursue opportunities via collaborative business models facilitating mutually beneficial performance outcomes.Practical implicationsOwner-managers of under-resourced small firms should be careful when implementing entrepreneurial marketing strategies utilising an individualistic business model. For example, they might pursue opportunities that are not viable and/or become over-loaded with market intelligence that they cannot handle. By collaborating with competitors, owner-managers can learn improved ways to operate within their industries, alongside being equipped with new resources and capabilities. In doing so, coopetition can help overcome some of the potential performance-limiting issues owner-managers face by being under-resourced, namely, via employing a collaborative business model.Originality/valueThis current study contributes to the extant literature by evaluating the complexities of entrepreneurial marketing practices. That is, although earlier research has focussed on the performance-driving outcomes of an entrepreneurial marketing orientation, prior studies typically overlook certain moderating factors that could influence this association. By examining the interaction between an entrepreneurial marketing orientation and coopetition on financial performance, new evidence has emerged on how owner-managers of small firms can utilise interfirm collaboration to succeed within their markets, as opposed to struggling to cope with the challenges of an individualistic business model. Specifically, an entrepreneurial marketing orientation is likely to enhance financial performance when under-resourced companies effectively collaborate with their competitors.

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Section: Methodsmentioning

confidence: 99%

The impact of the interaction between an entrepreneurial marketing orientation and coopetition on business performance

Crick

Karami

Crick

2021

IJEBR

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“…Individual stories can have a beneficial impact on potential tourists, while some may exert a negative impact. It is conceivable that tourism demand may fluctuate in response to the latest news regarding the fluctuation of a target country's currencies or the occurrence of regional and global economic problems (Khalid et al 2020;Schiff and Becken 2011;Tang and Tan 2016;Turner and Witt 2001;Vatsa 2020), political instability (Fletcher and Morakabati 2008), terrorism (Bhattarai et al 2005), disease (Huan et al 2004), natural disasters (Rosselló et al 2020;Tsai and Chen 2011), oil prices (Becken and Lennox 2012), seasonality and other specific calendar-related holidays or events (Lim et al 2008).…”

Section: News Shocks In Tourism Demand Volatilitymentioning

confidence: 99%

“…Meanwhile, some studies concisely assess demand projections for international tourism (Gunter and Önder 2016;Jiang et al 2020;Liu 2012;Qiu et al 2021;Song et al 2019;Wan and Song 2018). Amongst them, previous research has concentrated on forecasting global tourist demand utilising factors including currency fluctuations, gross domestic product (GDP) in the original country, consumer price index (CPI), income, and population size inability to forecast tourism demand in the international travel market (Hiemstra and Wong 2002;Santos and Cincera 2018;Schiff and Becken 2011;Stavárek 2007;Tang and Tan 2016;Turner and Witt 2001;Vatsa 2020), rather than the symmetric and asymmetric effects from these variables. Existing research studies of models forecasting international tourism demand, for instance, have indirectly accounted for the effect of volatile exchange rate fluctuations by converting the price factor within the tourist destination into the currency of the visitor country or by including a completely different factor in the international tourism demand function to account for the effect of volatile exchange rate fluctuations (Chang and McAleer 2012;Chi 2015;Croes and Sr 2005;Demir 2004;Falk 2015;Lim and Zhu 2017;Vita and Kyaw 2013;Yalcin et al 2021).…”

Section: Introductionmentioning

confidence: 99%

Effects of Multiple Financial News Shocks on Tourism Demand Volatility Modelling and Forecasting

Zhang

Choo

Aziz

et al. 2022

JRFM

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Even though both symmetric and asymmetric conceptions of news impacts are well-established in the disciplines of economics and financial markets, the effects of combining multiple news shocks on the volatility of tourism demand have not yet been delved into or gauged in any tourist destination. This work hypothesises and verifies that the news impact curve (NIC), conditional heteroscedastic volatility models, and multiple news shocks are suitable for forecasting the volatility of the Malaysian tourist industry. Among them, three primarily volatility models (GARCH, EGARCH, and GJRGARCH) are used in conjunction with five financial news shocks (FFNSs), namely the Kuala Lumpur Composite Index (KLCI), the United States Dollar Index (DXY), the stock performance of 500 large companies listed on stock exchanges (S&P500), Crude Oil (CO), and Gold Price (GP). Among the most significant findings of this study are the demonstration of monthly seasonality using conditional mean equations, asymmetry effects in EGARCH-FFNSs, and GJRGARCH-FFNSs models in conditional variance equations and 50 NICs, and the GARCH-FFNSs model’s evaluation of the persistence influence of news shocks on monthly visitor arrivals in Malaysia. The GJRGARCH-FFNSs model is the best model for Malaysian tourism demand volatility forecasting accuracy. Furthermore, KLCI and Gold Price have the most substantial impact on the number of tourists to Malaysia. In addition, it should be emphasised that the methodological framework utilised in this study can be a useful tool for creating and forecasting the performance of symmetry and asymmetry impacts on tourism demand volatility.

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“…To be sure, other methodological frameworks such as spectral decomposition (Coshall, 2000; Lyu et al, 2016), wavelet decomposition (Cao et al, 2016; Wu & Wu, 2019), latent cycle component (Guizzardi & Mazzocchi, 2010), and ensemble empirical mode decomposition (Zhang et al, 2017; Li and Law, 2019) have been used to isolate and study cyclical patterns in individual tourism demand time series. Furthermore, Vatsa (2020) isolates trends and cycles in tourism demand using a multivariate decomposition method developed by Vahid and Engle (1993); Narayan (2011) uses the same method to study the importance of transitory and permanent shocks to the real GDP and tourism demand in AU.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Nevertheless, few studies have examined the linkages between the demand for its tourism and global macroeconomics. For example, Becken (2008) and Becken and Lennox (2012) analyze linkages between global oil prices and tourism exports, Schiff and Becken (2011) investigate price and income elasticities of demand for NZ tourism for 16 international visitor segments from AU, CH, the US, the UK, GE, and the rest of the world, Tsui et al (2018) study the impact of economic policy uncertainty on variations in inbound business tourism, and Vatsa (2020) investigates long‐term trends and short‐term cycles amongst the demand for NZ tourism originating in AU, CH, the US, and the UK. Nonetheless, none of the above papers examines the impact of business cycles on tourism demand.…”

Section: Literature Reviewmentioning

confidence: 99%