Convergence in the Tourism Sector at the Local Level: Empirical Evidence from the EU Regions

  • Mariusz Próchniak Warsaw School of Economics, Al. Niepodległości 162, 02-554 Warszawa
  • Žan Jan Oplotnik University of Maribor, Faculty of Economics and Business, Razlagova 14, 2000 Maribor
  • Borut Vojinović University of Maribor, Faculty of Tourism, Cesta prvih borcev 36, SI-8250 Brežice
Keywords: tourism, regions, cconvergence, local level, EU

Abstract

In this study, we verify the hypothesis of convergence in the tourism sector across the regions of the enlarged EU. The tourism sector is measured by four variables: arrivals of residents, arrivals of non-residents, nights spent by residents and nights spent by non-residents and measure the intensity of tourist visits in a given region. Our analysis covers 272 regions of the EU28 countries with the analyzed period 1995-2014. The original time series have been divided by the number of population to be expressed per thousand of inhabitants. The results indicate that the tourism variables were developing in line with the - and σ-convergence hypotheses. The results for conditional β-convergence give some additional information about the impact of the other determinants on the growth rate in the number and the length of tourist visits.

Author Biographies

Žan Jan Oplotnik, University of Maribor, Faculty of Economics and Business, Razlagova 14, 2000 Maribor
Professor
Borut Vojinović, University of Maribor, Faculty of Tourism, Cesta prvih borcev 36, SI-8250 Brežice
Assistant Professor

References

EEAG (2004) Report on the European Economy 2004 (Munich: CESifo).
European Commission (2001) The Economic Impact of Enlargement, Enlargement Paper No.4 (Brussels: European Commission).
Jelovac, D., Wal, Z. & Jelovac, A. (2011) Business and government ethics in the new and old EU: an empirical account of public-private value congruence in Slovenia and the Netherlands, Journal of Bussines Ethics, 103(1), pp. 127-141, doi: 10.1007/s10551-011-0846-5.
Kaitila, V. (2004) Convergence of Real GDP Per Capita in the EU15. How Do the Accession Countries Fit In?, European Network of Economic Policy Research Institutes Working Paper, no .25 (European Network of Economic Policy Research Institutes).
Kavčič, K., Meško, M., Meško Štok, Z. & Markič, M. (2015) Corporate policy and the degree of management sophistication in Slovenian companies, International journal of management and enterprise development, 14 (1), pp. 70-88. doi: 10.1504/IJMED.2015.069314.
Kutan, A.M. & Yigit, T.M. (2004) Nominal and Real Stochastic Convergence of Transition Economies, Journal of Comparative Economics, 32, pp. 23-36. doi: 10.1016/j.jce.2003.09.008.
Kutan, A.M. & Yigit, T.M. (2005) Real and Nominal Stochastic Convergence: Are the New EU Members Ready to Join the EuroZone?, Journal of Comparative Economics, 33, pp.387-400, doi: 10.1016/j.jce.2005.03.001.
Smyth, R., I. Nielsen and V. Mishra (2009) ‘“I’ve been to Bali too” (And I will be going back): Are terrorist shocks to Bali’s tourist arrivals permanent or transitory?’, Applied Economics, 41(11), pp. 1367-1378.
Lean, H. H. & Smyth, R. (2006a) ‘Asian financial crisis, avian flu and terrorist threats: are shocks to Malaysian tourist arrivals permanent or transitory?’, Discussion Paper No. 11/06 (Melbourne: Department of Economics. Monash University).
Lean, H. H. & Smyth, R. (2006b) Marketing ‘Malaysia Welcomes the World’. Are Malaysia’s Tourism Markets Converging?, Asian Business and Economics Research Unit, Faculty of Business and Economics. Monash University, Discussion Paper No. 25 (Clayton: Monash University).
Mankiw, N. G., Romer, D. & Weil, D. N. (1992) A Contribution to the Empirics of Economic Growth, The Quarterly Journal of Economics, 107, pp. 407-437. doi: 10.2307/2118477.
Narayan, P. K. (2005a) ‘Testing the unit root hypothesis when the alternative is a trend break stationary process: an application to tourist arrivals in Fiji’, Tourism Economics, 11, pp. 351–364.
Narayan, P. K. (2005b) ‘Did Rabuka’s military coups have a permanent effect or a transitory effect on tourist expenditure in Fiji: evidence from Volgesang’s structural break test’, Tourism Management, 26, pp. 509–515.
Monfort, P. (ed.) (2008) Convergence of EU regions, Measures and evolution No.1 (Brussels: European Comission).
Narayan, P. K. (2005c) The structure of tourist expenditure in Fiji: Evidence from unit root structural break tests, Applied Economics, 37(10), pp. 1157–1161.
Narayan, P. K. (2006a) Are Australia’s tourism markets converging?, Applied Economics 38(10), pp. 1153–1162.
Oplotnik, Ž. J., Vojinović, B. & Acharya, S. (2011) Cross Border Economic Convergence and EU Integration Process, Lex Localis - Journal of local self–government, 9 (2), pp. 179 – 203, doi: 10.4335/9.2.181-205(2011).
Sims, R. R. (1992). The challenge of ethical behavior in organizations, Journal of Business Ethics, 11(7), pp. 505-513. doi: 10.1007/BF00881442.
Solow, R. (1956) A Contribution to the Theory of Economic Growth, Quarterly Journal of Economics 70(1), pp.65-94.
Šalamon, T., Milfelner, B. & Belak, J. (2015) Late Payments and Ethics of Management: Possible Solutions for Local Economies, Lex Localis - Journal of local self–government, 13(3), pp. 351-373, doi: 10.4335/13.3.351-373(2015).
Šalamon, T. & Meško, M. (2016) Can an ethical work climate influence payment discipline?, Journal of industrial engineering and management, 9(1), pp. 73-89, doi: 10.3926/jiem.1537.
United Nations World Tourism Organization (2015a) UNWTO Tourism Highlights (Madrid: United Nations World Tourism Organization).
United Nations World Tourism Organization (2015b) UNWTO World Tourism Barometer (Madrid: United Nations World Tourism Organization).
United Nations World Tourism Organization and International Labour Organization (2011). Economic crisis, international tourism decline and its impact on the poor: an analysis of the effects of the global economic crisis and on the employment of poor and vulnerable groups in the tourism sector (New York: United Nations Global Pulse).
Varblane U. & Vahter P. (2005) An Analysis of the Economic Convergence Process in the Transition Countries, University of Tartu, Faculty of Economics and Business Administration Working Paper Series no. 37 (Tartu: University of Tartu).
Vojinović B., Prochniak M. & Acharya S. (2009) Convergence analysis among the ten European transition economies, Hitotsubashi Journal of Economics, 50(2), pp. 124-141.
Vojinović, B., Oplotnik, Ž. J. & Próchniak, M. (2010) EU enlargement and real economic convergence, Post–Communist Economies, 22(3), pp. 303-322, doi:10.1080/14631377.2010.498681.
Wagner, M. & Hlouskova, J. (2002) The CEEC10's Real Convergence Prospects, CEPR Discussion Papers 3318 (London: CEPR).
Wagner M. & Hlouskova J. (2009) Growth Regressions, Principal Components and Frequentist Model Averaging, Economics Series (Vienna: Institute for Advanced Studies).

Published
2016-07-31
Section
Conference Paper

Most read articles by the same author(s)