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  • Applied Tourism Economic Impact Analysis - Factor Analysis
    structure are the principal factors influencing per person per day expenditure levels The number of other facilities within 20 miles of the chosen destination had the most impact on per person per day expenditures Facility development was shown to be the dominant predictive force in accounting for the level of expenditures Other Examples Nadal J R A R Font and A S Rossello 2004 The Economic Determinants of Seasonal Patterns Annals of Tourism Research 31 3 697 711 This paper examines two particular issues the applicability of the Gini coefficient as a measurement of seasonality in tourism and the influence of some economic variables on seasonal distribution It was found that the Gini coefficient is a good indicator easily able to summarize temporal variations in seasonality Through regression analysis it was determined that some specific economic variables have a significant relationship with the seasonal shape of the tourism demand The analysis points to the conclusion that as people have more income at their disposal they tend to divide their holidays into several sub periods In contrast the nominal exchange rate plays an opposite role in that the more it benefits tourists they more tourists are likely to travel at peak periods The overall results support the idea that tourists in the peak season differ from those in the off season period Mules T 1998 Decomposition of Australian tourist expenditures Tourism Management 19 3 267 271 This paper looks at the various components of the economic impact of tourists on the Australian economy In particular the total expenditure of visitors is seen as a function of the number of visitors the length of stay and the average expenditure per visitor per night Over time the growth in the Australian tourism industry is seen to a product of an increasing volume of visitors rather than visitors who consume more or stay longer The author suggests this has important policy implications and the reliance on the mass tourism is a potential risk to the Australian economy This paper illustrates that from a public policy perspective it is important to understand not only total economic impact but also the factors that result in that impact Misinterpreting the most influential factors in yearly expenditure trends can lead to poor public policy decisions Lindberg K and R L Johnson 1997 The Economic Values of Tourism s Social Impacts Annals of Tourism Research 24 1 90 116 This article presents the use of contingent valuation to estimate the economic cost of three social impacts of tourism on the Oregon Coast traffic congestion noise and minor crime and provision of low income housing A detailed description of the contingent valuation method is provided along with a discussion of its challenges sources of errors and major pitfalls In particular the challenge of discriminating between the valuation of the commodity and the valuation of the policy presented in the contingent valuation scenario is highlight The authors present logit models of the contingent valuation scenarios and analyze the various factors that

    Original URL path: http://urpl.wisc.edu/people/marcouiller/projects/clearinghouse/Factor%20Analysis.htm (2014-11-22)
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  • Applied Tourism Economic Impact Analysis - Taxation and Fiscal Balance
    models are based on MicroIMPLAN An example scenario of an increase in manufacturing employment for St Croix County Wisconsin is estimated Lake States Examples Sheil R G D J Knapp and T A Berry 2004 Room Taxes and Tourism Development Madison WI Wisconsin Taxpayers Alliance This report by the Wisconsin Taxpayers Alliance documents the results of survey of room taxes charged by cities villages and towns throughout Wisconsin Room taxes have been rising slowly towards the legal ceiling of 8 0 Room taxes are used to finance tourism promotion business and economic development general revenues infrastructure and increasingly large scale convention centre projects The study also presents data and trends of the economic impact of tourism in 26 major markets and northern counties The study does not analysis the affect of room taxes on Wisconsin tourism demand Deller S C D W Marcouiller and G P Green 1997 Recreational Housing and Local Government Finance Annals of Tourism Research 24 3 687 705 The study uses holistic model of fiscal impact to determine the economic impact of recreation housing on local governments fiscal balance in Wisconsin counties The holistic model uses a traditional fiscal modeling approach that is rooted in the public finance literature and estimates a set of reduced form equations detailing local government revenues and expenditures In general it was found that recreational housing development just pays for itself in terms of the ability of local governments to generate revenues such as property taxes fines and penalties charges and fees and state aids when compared to the demand places on services as measured by expenditures such as general government expenditures police and fire protection road maintenance waste disposal health and human services cultural and education services parks and recreation and conservation and development Marcouiller D W and J Alpi 1995 Using County Sales Tax to Identify Tourism Trends Selected Wisconsin Counties Madison WI Tourism Research and Resources Center University of Wisconsin Extension The authors of this document outline trends in tourism sensitive business sectors at the county level using sales tax information provided by the State of Wisconsin This is done only for the 43 Wisconsin counties in which the tax was in effect during 1993 A ranked list of counties based upon net sales tax per capita illustrates that Door County and Oneida County had the highest net sales tax per capita at 66 78 and 64 43 respectively Between 1991 and 1993 15 new counties have added a county sales tax Included in this recent set of additions Dane County had a 59 71 net sales tax per capita during 1993 placing it third in the state using this measure Generally higher net sales tax per capita are found among counties where tourism is relatively more important Local economies benefit from the influx of money from nonresidents into these tourism sensitive areas Somersan A 1979 Visitor Economic Impacts In Brown County Madison WI Recreation Resources Center University of Wisconsin Extension This report looked at the economic impact

    Original URL path: http://urpl.wisc.edu/people/marcouiller/projects/clearinghouse/Taxation.htm (2014-11-22)
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  • Applied Tourism Economic Impact Analysis - Introduction to Non-Market Goods Valuation
    L and P Forsyth 1997 Measuring the Benefits and Yield from Foreign Tourism International Journal of Social Economics 24 1 2 3 223 236 This paper explores the issues associated with measuring tourism yield in the international tourism sector While it is theoretically possible to calculate tourism yield by measuring all cost and benefits of the tourism sector it is not possible on the basis of currently available information The best overall indicator appears to be net domestic tourist expenditure total expenditure less leakages on imports Further analysis may make it possible to distinguish different externality impacts taxed paid and terms of trade effects although it is not clear the the differences would be significant Marcouiller D W and S C Deller 1997 Natural Resource Stocks Flows and Regional Economic Change Seeing the Forest and the Trees Journal of Regional Analysis and Policy 26 2 95 116 The use of regional science and its corresponding tools to examine issues affecting natural resource dependent regions are reviewed and critiqued Particular attention is drawn to the increased importance of non market uses of these natural resources The authors suggest that because most regional science tools are market based the increased importance of non market uses of these resources is overlooked in policy analysis In addition to reviewing this issue the authors outline a method to explicitly capture the non market aspects of natural resources within a regional economic model Smith S L J 1995 Shadow Prices and Non Market Valuation In Tourism Analysis A Handbook Essex Longman Group Limited Second Edition 250 272 This chapter deals with the valuation of non market goods using the expression of willingness of travelers to pay for either the continued access to that resource or for some degree of enhancement The concept of consumer surplus the

    Original URL path: http://urpl.wisc.edu/people/marcouiller/projects/clearinghouse/Non-Market%20Goods.htm (2014-11-22)
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  • Applied Tourism Economic Impact Analysis - Willingness To Pay
    of Ohio s Lake Erie Charterboat Industry used willingness to pay estimates the only study in this collection to use this method Samples K C and R C Bishop 1981 The Lake Michigan Angler A Wisconsin Profile Madison WI University of Wisconsin Sea Grant Institute Department of Agricultural Economics Center for Resource Policy Studies University of Wisconsin Madison This report builds a profile of the Wisconsin Lake Michigan angler Included in the report is a section on the economic impacts of the angler In 1978 Lake Michigan anglers in Wisconsin spent a total of 16 4 million on their angling pursuit Of that 9 8 million was spent in Wisconsin coastal counties and 1 8 million in other Wisconsin counties A cost benefit analysis of government expenditures to angler consumer surplus calculated by willingness to pay is also calculated The study conludes that there were 2 5 million in government expenditures on Lake Michigan angling in 1978 while anglers derived a consumer surplus of 7 2 million This is a return on government investment of 2 8 to every one dollar invested Other Examples Eubanks T L J R B Ditton and J R Stoll 1998 Platte River Nature Recreation Study Austin TX Texas Web Link This study uses willingness to pay to calculate the value of bird watching only the Platte River in Nebraska A total of 1 259 surveys were collected and a random telephone check of non respondents revealed no response basis Respondents indicated a willingness to pay an additional 192 75 annually before they would have cancelled their trips to and within the Middle Platte The consumer surplus for bird watching ranged between 2 8 million and 4 4 million and the total value of wildlife watching along the Platte River ranged between 27 9 million

    Original URL path: http://urpl.wisc.edu/people/marcouiller/projects/clearinghouse/Willingness%20to%20Pay.htm (2014-11-22)
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  • Applied Tourism Economic Impact Analysis - Contingent Valuation
    Marcouiller D W A Anderson and W C Norman 1996 Trout Angling in Southwestern Wisconsin and Implications for Regional Development Madison WI The Center for Community Economic Development Univeristy of Wisconsin Extension This study assessed trout anglers on two Southwestern Wisconsin streams for their perceptions about current resource attributes and their resource use behavior A two stage survey effort was undertaken during the 1995 angling season including angler identification and subsequent survey In addition to perceptive and behavioral information the effort used expenditure data with an input output model constructed using MicroIMPLAN to estimate regional economic impacts The study also collected data on angler willingness to pay for non market resource attributes affected through fisheries management Results from this portion of the study were based on graphical analysis of a series of dichotomous choice contingent valuation questions Marcouiller D W W C Norman A Anderson and A Stoecker 1996 Valuing Management Attributes of a Trout Fishery Resource Differences Between Local and Non Local Anglers May 12 23 University Park Paper presented at the 6th International Symposium on Society and Natural Resources This study analyzed the perception of fishery resource attributes by anglers in Southwestern Wisconsin during the 1995 angling season Logistic regression and a dichotomous choice contingent valuation survey were used to develop non market resource valuation measures Local anglers were shown to be significantly different from non local anglers in many respects Of particular interest were differences in the economic values associated with resource attributes that are manipulated through fisheries management activities Boyle K J and R C Bishop 1984 Lower Wisconsin River Recreation Economic Impacts and Scenic Values No 216 Madison WI Department of Agricultural Economics University of Wisconsin Madison This study of summer canoeists and boaters along the Lower Wisconsin River found that there are substantial economic impacts and benefits from this type of recreation Interviews were conducted of river users Through this method it was found that summer use by boaters added 860 000 per year to business activity and 439 000 to household incomes In addition the study used a contingent valuation method to estimate the value of the scenic aspects of the river The study recommended several management policies that could help to maintain the scenic beauty of the area including stricter zoning ordinances and purchases of scenic easements Other Examples Lee C K and S Y Han 2002 Estimating the Use and Preservation Values of National Parks Tourism Resources Using a Contingent Valuation Method Tourism Management 23 531 540 The study uses the contingent valuation method choosing it over the travel cost method for a number of reasons to estimate the use and preservation or non use values of natural and or cultural resources in five Korean national parks The use values ranged from 14 3 to 4 8 and the preservation values 13 5 to 10 6 The study found the further away the park was to the user the higher the use value while the closer the park was to the

    Original URL path: http://urpl.wisc.edu/people/marcouiller/projects/clearinghouse/Contingent%20Valuation.htm (2014-11-22)
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  • Applied Tourism Economic Impact Analysis - Travel Cost Method
    IL Water Resources Center University of Illinois This report written in the context of national economic development provides a lengthy description of two techniques commonly used to determine the value of recreation resources by calculating consumer willingness to pay a straightforward survey method and the travel cost method This report advocates strongly for the use of the travel cost method Lake States Examples Murray C and B Sohngen 2001 Valuing Water Quality Advisories and Beach Amenities Water Resources Research 37 10 2583 2590 This paper present estimates of the value of reducing beach advisories along Lake Erie s shoreline in Ohio Using a travel cost model the seasonal benefits of reducing one advisory is estimated A random utility model is linked to a Poisson model that predicts annual trips based on individual willingness to pay and other individual characteristics Individuals who use the media in advance of trips gain less approximately 24 per year while those who use only signs posted at the beach would gain more 38 per year Upneja A E L Shaffer W Seo and J Yoon 2001 Economic Benefits of Sport Fishing and Angler Wildlife Watching in Pennsylvania Journal of Travel Research 40 August 68 78 This article answers two major policy questions about the economic benefits of sport fishing in Pennsylvania what is the annual value of Pennsylvania s sport fishing resources and what is the annual economic impact from the use of that resource Data from a mail based questionnaire with 907 respondents was used to answered these questions using the travel cost method and input output analysis IMPLAN The annual total value of the sport fishing resource was found to be 3 98 billion or about three times the total out of pocket expenses The study found an overall economic impact of sport

    Original URL path: http://urpl.wisc.edu/people/marcouiller/projects/clearinghouse/Travel%20Cost%20Method.htm (2014-11-22)
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  • Applied Tourism Economic Impact Analysis - Hedonic Pricing Method
    of the first to apply the technique of hedonic pricing to the tourism industry The hedonic pricing model treats goods and services as providing a collection of characteristics and can be applied to a market for any differentiated product or service Using data from bed and breakfast in Walworth County Wisconsin the hedonic pricing model is used to reveal the willingness to pay for different amenities While location is the

    Original URL path: http://urpl.wisc.edu/people/marcouiller/projects/clearinghouse/Hedonic%20Pricing.htm (2014-11-22)
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  • Applied Tourism Economic Impact Analysis - Cost-Benefit Analysis
    better off after the implementation of the proposed project Cost benefit analysis is used in four different context to determine whether a project is feasible the appropriate size of a project which of several competing projects is most appropriate and setting the development schedule of a set of projects Curry S 1994 Cost Benefit Analysis Tourism Marketing and Management Handbook Stephen F Witt and Luiz Moutinho ed New York Prentice Hall Second Edition 504 509 This chapter describes the technique of cost benefit analysis and its use in tourism research Essentially cost benefit analysis is a technique for assessing the viability of a new investments or expenditure programs In a cost benefit analysis the costs and benefits in every year of a project are calculated and the present discounted costs are evaluated against the present discounted benefits An important consideration sis determining the scope of the cost benefit analysis Is it narrow in scope and being conducted for purely for the investors in the project or is much broader in scope evaluated from the publics perspective with consideration for indirect and environmental effects The chapter includes a brief discussion of how to properly valuate the costs and benefits under different assumptions Lake States Examples Samples K C and R C Bishop 1981 The Lake Michigan Angler A Wisconsin Profile Madison WI University of Wisconsin Sea Grant Institute Department of Agricultural Economics Center for Resource Policy Studies University of Wisconsin Madison This report builds a profile of the Wisconsin Lake Michigan angler Included in the report is a section on the economic impacts of the angler In 1978 Lake Michigan anglers in Wisconsin spent a total of 16 4 million on their angling pursuit Of that 9 8 million was spent in Wisconsin coastal counties and 1 8 million in other

    Original URL path: http://urpl.wisc.edu/people/marcouiller/projects/clearinghouse/Cost-Benefit.htm (2014-11-22)
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