The tourism area life cycle hypothesis: A micro-foundation

• Simone Marsiglio ^[1] ; Marco Tolotti ^[2]
  1. [1] University of Pisa

     University of Pisa

     Pisa, Italia

     
  2. [2] Ca Foscari University of Venice

     Ca Foscari University of Venice

     Venezia, Italia

     
• Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 30, Nº. 2 (March), 2024, págs. 345-360
• Idioma: inglés
• Texto completo no disponible (Saber más ...)
• Resumen

  • We provide a simple micro-foundation of the tourism area life cycle hypothesis, based on tourists’ utility maximization. As a result of social interactions among tourists which determine destinations popularity, the market share of visitors which decides to visit a specific destination follows a logistic dynamics, consistent with what predicted by the tourism area life cycle hypothesis. We show that different preference drivers explain the duration of the different tourism area life cycle stages: the net benefit from visiting the destination characterizes the exploration, involvement, and development phases, while social effects associated with destination popularity characterize the phases of consolidation and stagnation Different from previous studies our results hold true independently of whether we focus on the repeating or non-repeating segment of the tourism market. We also provide a calibration of our model to the case of the city of Venice (Italy) showing that it performs well in capturing the evolution of tourism in the historical center of the city over the last 60 years, suggesting that TALC-like dynamics may occur even in the context of cultural and heritage destinations.