Hedonic Value of Italian Tourism Supply: Comparing Environmental and Cultural Attractiveness

40 Pages Posted: 17 Jan 2015

Date Written: September 26, 2014

Abstract

This paper provides an empirical evaluation of the main determinants of hotel prices in the Italian tourism industry. We pool information from two datasets: i) a database on hotel prices and attributes based on the Touring Club Italia Guide and providing information on about 1,100 hotels located in almost 300 towns in the entire Italian coastal region; and ii) a set of neighbourhood characteristics indicators that assess local environmental quality and artistic and cultural attractiveness. On the basis of the results of a hedonic analysis of hotel price differentials, we show that tourists place a high value on both marine environmental quality and local access to artistic and cultural amenities. The contribution to consumer utility is sizeable in both cases, but that of artistic and cultural amenities appears to be more stable across seasons. On the whole, our results suggest that the widespread availability of an extraordinarily rich artistic and cultural endowment, as is the case of Italy, may strongly complement environmental attributes in supporting the non-price competitiveness of the coastal tourism industry.

Keywords: tourism, environment, artistic and cultural attractiveness

JEL Classification: L83, Q53, R11, Z11

Suggested Citation

Di Giacinto, Valter and Micucci, Giacinto, Hedonic Value of Italian Tourism Supply: Comparing Environmental and Cultural Attractiveness (September 26, 2014). Bank of Italy Temi di Discussione (Working Paper) No. 975. Available at SSRN: https://ssrn.com/abstract=2550770 or http://dx.doi.org/10.2139/ssrn.2550770

Valter Di Giacinto (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Giacinto Micucci

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

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