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Terceira-G35-O1 Tourism and Overtourism Issues

Tracks
Ordinary Session/Refereed
Wednesday, August 28, 2024
16:45 - 18:30
S17

Details

Chair: Giuseppe Roma


Speaker

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Prof. Giuseppe Roma
Senior Researcher
Fondazione TCI / RUR

Experimental model for rebalancing cultural tourism flows: the case of low-visitation UNESCO sites

Author(s) - Presenters are indicated with (p)

Giuseppe Roma (p)

Discussant for this paper

Miriam Šebová

Abstract

Experimental model for rebalancing cultural tourism flows: the case of low-visitation UNESCO sites

The concentration of tourist flows in a few locations determines two forms of degradation: congestion and speculation in the most visited centers, the impoverishment of areas with high tourist potential but rarely visited. Consider that in Rome, 86% of visitors concentrate their visits to cultural sites in 14% of the surface area of the historic center.
The reduction of over tourism is possible if a part of the flows, especially in the second visit to a regional territory, is oriented towards going to lesser-known locations. For this reason, an experimental model was tested for Italian UNESCO sites with low tourist attendance.
The strong discontinuity caused by Covid-19, political crises and conflicts places even greater urgency on the definition of models aimed to put in value potentially valid resources under different profiles (cultural, employment, economic, entrepreneurial etc.), but which require initiatives, investments, skills and active subjects in order to fully deploy its propulsive function for development. For these reasons, it seems useful to start a systematic reflection on which factors could be decisive for raising the "firepower" of the different territories with high cultural and natural values.
Experimental model includes a recognition and identification (also quantitative) of the value represented by the Unesco sites included in the project, a survey of opinion leaders, community leaders, stakeholders and entrepreneurs of the territories concerned. Project sheets were defined on the basis of the results of the survey and the involvement of the community organizations.
Starting from these basic assumptions, it will be necessary to proceed to define a more complex value proposition by identifying which reasons can increase the motivation and interest in relating to territories as visitors, as investors or as entrepreneurs.
In addition to the original promotional objectives oriented towards the development of conscious and sustainable tourism, as well as the greater diffusion of local products especially linked to the food chain, it is now appropriate to identify complementary objectives.
It is necessary to prepare a series of tools aimed at obtaining multiple results: from greater visibility and growing bargaining power towards political institutions, to the increase in flows of visitors, new residents, investors, to the improvement of infrastructure, connections and services, to support the business world, especially the most fragile, small and medium-sized ones, and innovative start-ups.


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Mr Giovanni Perucca
Associate Professor
Politecnico di Milano - DABC

The impact of short time rentals on house prices: evidence from Milan

Author(s) - Presenters are indicated with (p)

Mattia Galleani, Giovanni Perucca (p), Chiara Tagliaro

Discussant for this paper

Giuseppe Roma

Abstract

The COVID19 pandemic and the rapid and widespread diffusion of remote working stimulated an intense debate on the future of cities. The possibility of having access to the advantages of urban life, in terms for instance of better job opportunities, without the need of neither living in the city nor commuting on a daily basis, led to the development of new scenarios, characterized by a structural decrease in the demand for an urban location. However, the idea of a relative decrease of the importance of urbanization economies on individual wellbeing is at odds with the dynamics of the housing market in major cities after 2020. The increasing trend of house prices did not reverse after the pandemic, although many large European cities experienced a demographic decline.
This work focuses on this apparently paradoxical evidence. More in details, the scope of this research is to test to what extent the increase in urban house prices depends on the change of destination of use of housing units, from a residential to a short-time rental use. Digitalization and the changes in the tourism consumption, in fact, led to a capillary diffusion of platform-mediated short-time rental accommodation facilities, in particular in cities. The assumption to be tested is that this significantly reduced the supply of housing, generating a positive net effect on prices and rents.
The empirical analysis of the study focuses on the city of Milan, where the post-COVID19 trend of housing values is at the core of the public debate on the rapidly growing socioeconomic inequalities. The paper will therefore explore the association between the change of housing prices and the density of short time rentals over time. The hypothesis to be tested is that the raise of housing prices is higher in those areas where the density of short time rentals increased more. The use of geo-referenced data for both real estate transaction and short time rental accommodation facilities (i.e. Airbnb hosts) allows, through the use of GIS, for a precise measurement of this spatial spillover. Importantly, this effect will be empirically estimated by applying multiple regression models, to control for the different characteristics of houses, both intrinsic (such as year of construction, quality of finishes) and extrinsic (closeness to the center and/or to services).
The findings of this research are expected to convey important policy implications for public policies on the potentially negative externality generated by short time rentals.
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Dr. Kenji Kondoh
Full Professor
School of Economics, Chukyo University

How can we solve the problems caused by over-tourism?

Author(s) - Presenters are indicated with (p)

Kenji Kondoh (p)

Discussant for this paper

Giovanni Perucca

Abstract

In this study, applying the general equilibrium model, we consider two negative aspects of over-tourism. The first one is serious congestion and traffic jams which make local residents' ordinary use of public transport impossible. The second one is litter and environmental pollution which reduce the productivity of the environmentally sensitive local agriculture industry. We investigate the effects of solving policies on the economic welfare of local residents. We find that under certain conditions, total regulation of tourists may reduce welfare. Moreover, relaxing congestion policies also may not always contribute to enhancing welfare.
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Mr José-Miguel Rebolho
Ph.D. Student
University of Coimbra, CeBER, Faculty of Economics

Portugal and tourism as an economic development strategy: the limits of input-output methodology in the context of labor shortage

Author(s) - Presenters are indicated with (p)

José-Miguel Rebolho (p), Luís Cruz, João-Pedro Ferreira

Discussant for this paper

Kenji Kondoh

Abstract

Before the COVID-19 pandemic, Portugal was observing an exponential increase in tourism activities, particularly pressured by the increase in the number of guesthouses and a steady growth in traditional hospitality. In 2022, the trend continued, with international visitors rapidly returning to pre-pandemic levels (and even surpassing them in certain regions). This means that overall, between 2016 and 2022, the increase in international visitors observed a surge of approximately 100% during this period, representing a relevant shock that was particularly critical in the context of an increasingly inelastic labor market and shortage of workforce supply.
In methodological terms, many regional economists and practitioners rely on Input-Output models to simulate the impacts of tourism on regional economies. However, such a huge shock, particularly in regions where tourism, in 2016, already formed the economic base, represents a critical shock that questions the assumption that there is unlimited availability and constant elasticity in the labor market, an assumption that is a foundation element of the traditional input-output models.
In this work, we use multi-regional input-output models for the Portuguese economy (PReMMIA - Portuguese Regions Model for Multi-Impact Analysis), with a tourism extension, to estimate the indirect and induced effects of an increase in international tourism. Subsequently, the results of the impact are compared to current labor market data to assess how the increase in tourism and increase in employment led to regional changes, namely, labor reallocation between industries, with workers shifting from traditional industries to others related to tourism; and the need for in-migration, specifically hiring seasonal migrants to address the tourism peak season.
Our results highlight how an economic development based on tourism, a labor-intensive activity, will amplify some of the structural challenges the Portuguese society has faced, namely the workforce reduction (through aging and the out-migration of skilled workers), the increasing relative importance of non-tradable activities and the modest economic growth during the last decade.
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Prof. Miriam Šebová
Associate Professor
TU, Ekonomická fakulta

Cultural Participation as a Pathway to Urban Sustainability in Košice Post-ECoC 2013

Author(s) - Presenters are indicated with (p)

Miriam Šebová (p), Zuzana Réveszová

Discussant for this paper

José-Miguel Rebolho

Abstract

This paper explores the impact of the title Košice European Capital of Culture (ECoC) 2013 on the cultural participation in the city, the well-being of citizens and the impacts of the COVID-19 pandemic on cultural engagement.
The presented research was drawn during the formulation of a new cultural strategy for the city, prompting a reevaluation of previous ECoC-driven initiatives. Leveraging insights from earlier data collection efforts in 2007 and 2013-2014, the study aims to illuminate the lasting legacy of ECoC in shaping Košice's cultural ecosystem.
Framed within a theoretical context, the paper critically examines prevailing perspectives of culture led-urban development concept and cultural policy paradigms, particularly in light of austerity measures. It advocates for alternative conceptualizations rooted in sustainable development theories, emphasizing the intrinsic value of cultural participation in fostering societal well-being and cohesion.

Methodologically, the study adopts a mixed methods approach, combining focus groups with residents and data from a representative survey to investigate shifts in cultural participation patterns over seven years. Quantitative methods, such as latent class cluster analysis, are used to display the changes in cultural engagement.
Findings reveal a reduction in cultural inactivity alongside increased engagement with popular culture, indicating a more diversified cultural landscape post-ECoC. However, challenges persist in addressing inherent stratification within cultural participation.
In conclusion, the paper argues for a nuanced understanding of cultural participation as a catalyst for urban sustainability. By prioritizing accessibility and inclusivity in cultural policies before the number of cultural events, cities like Košice can harness their cultural heritage to promote social integration and advance the broader agenda of sustainable urban development.

Extended Abstract PDF

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