The Effect of Tourism on the Housing Market

Biagi, Bianca; Lambiri, Dionysia; Faggian, Alessandra

doi:10.1007/978-94-007-2288-0_36

Cited by 27 publications

(35 citation statements)

References 49 publications

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“…Specifically, on average if the tourism index increases by 1 percent, house prices rise by 0.20 percent. This result is in line with findings of Biagi, Lambiri, and Faggian ()—where a similar index is employed in the case of Sardinia—as well as findings of Cannari and Faiella ()—where the analysis of a sample of Italian municipalities derives similar results. This positive link needs to be interpreted cautiously because cities in Italy differ significantly as tourism destinations; in addition, another source of caution in the interpretation of this result is the fact that tourism is just one of the various economic activities in cities that generate local growth and hence can explain higher house prices.…”

Section: Resultssupporting

confidence: 91%

“…Furthermore, in the present model, house price depends also on location‐specific amenities/disamenities ( A ) (Anderson and West ; Do and Grudnitski ; Luttik ; Nicholss and Crompton ), and on tourism‐related activities indicated with T (Biagi, Lambiri, and Faggian ; Cannari and Faiella ).…”

Section: Data and Empirical Modelmentioning

confidence: 93%

“…As in Biagi, Lambiri, and Faggian (), the methodology used to construct the index is the Van der Waerden (VDW) ranking score, which is a type of fractional rank (FR) defined as:

V D W_{i, t} = \frac{R_{i, t}}{(n + 1)}

…”

Section: Data and Empirical Modelmentioning

confidence: 99%

“…Research both in the fields of tourism economics and housing studies recognizes that tourism and tourist‐related activities can affect housing markets directly as well as indirectly: directly, via the “external” demand generated by tourists that “competes” with the local resident communities (and in several cases with each other) for land and housing in tourist destinations; and indirectly via the capitalization of tourism‐related amenities and disamenities in the market price and value of housing (see Biagi, Lambiri, and Faggian for a comprehensive review). However, studies that attempt to “quantify” the overall effect of tourism activity on the housing market and empirically test the relationship between tourism and house prices are limited.…”

Section: Introductionmentioning

confidence: 99%

“…The exercise of Biagi, Lambiri, and Faggian () is based on a previous work of Biagi and Faggian (); in this context, the tourism index is presented for the first time.…”

mentioning

confidence: 99%

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Does Tourism Affect House Prices? Evidence from Italy

Biagi¹,

Brandano²,

Lambiri³

2015

Growth and Change

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The purpose of the present work is to analyze whether—and to what extent—tourism activity affects urban house price dynamics in Italy. Using a system Generalized Method of Moments (GMM‐SYS) approach and after controlling for socioeconomic characteristics of the local housing markets as well as amenities and disamenities, we test for the effect of tourism by employing a composite index that enables us to capture the complexity of the tourism market. Data consist of yearly observations on the average house prices of 103 Italian cities over the period of 1996–2007. The results confirmed by several robustness checks demonstrate that tourism activity positively affects house prices. In addition, this work provides several first hints that this relationship might not be the same for all types of cities; hence, further developments of the present work should proceed in the direction of searching for different potential regimes through the use of mixture models.

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Section: Resultssupporting

confidence: 91%

Section: Data and Empirical Modelmentioning

confidence: 93%

“…As in Biagi, Lambiri, and Faggian (), the methodology used to construct the index is the Van der Waerden (VDW) ranking score, which is a type of fractional rank (FR) defined as:

V D W_{i, t} = \frac{R_{i, t}}{(n + 1)}

…”

Section: Data and Empirical Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

“…The exercise of Biagi, Lambiri, and Faggian () is based on a previous work of Biagi and Faggian (); in this context, the tourism index is presented for the first time.…”

mentioning

confidence: 99%

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