Inbound Tourism, Hospitality Business, and Market Structure

Abstract

In this article, a standard model is used to examine the economic effect of market structure in travel destinations. We show that favorable changes in the push and pull factors are good for enhancing local hospitality business to the extent that they stimulate external tourism demand. We also find that rising competition in the hospitality industry, albeit boosting its sales, may have no effect on its revenue but can affect its profitability adversely due to resulting price drops that are desirable only to incoming visitors. Our policy implication is that there is no need to push for competitive industry structure, which is locally inefficient given that hospitality business catering to nonresident tourists is for profit and not for altruism.

Factors Behind Tourists’ Travel Motivation: The Case of the Gilan Region, Iran

“…The push and pull factors are fundamental for explaining why people travel (Jang et al 2009). Push and pull motivation has been accepted as a framework for explaining tourist's motivation (Jang, Cai 2002;Gu et al 2019). Pull factors are related to the tangible characteristics of a destination (lifestyle, landscape, events, culture, heritage or climate), thus providing an extrinsic travel motive to the tourist.…”

A study on the influence of perceived distance on China’s inbound Tourism and the interaction of non-economic distance: An analysis of dynamic extended gravity model based on 61 countries’ entry data (2004–2018)

“…As reviewing the previous literature of international tourism, the international tourism demand and factors on inbound tourism is the mainstream of studies. It is obvious that the structure of inbound tourism market and outbound tourism market [3,4] can not be ignored in the demand of international tourism [5,6]. As the accessibility of data, most previous studies centered on the factors of inbound tourism market, such as geographical condition, social economy, culture, and climate.…”