More Means Worse. Asymmetric Information, Spatial Displacement and Sustainable Heritage Tourism
Tinbergen Institute Discussion Paper No. TI 2001-035/2
17 Pages Posted: 19 Jul 2001
Date Written: May 8, 2001
This paper analyses the market transformations in heritage tourism destinations when excessive tourism demand determines the emergence of a class of excursionists among visitors. Building on the approach of Keane (1997) and Shapiro (1983), some important dimensions of sustainable tourism development are highlighted. The lesser capacity of excursionists to learn the true quality of the tourist goods provides an opportunity for producers to cut back on quality. To serve high quality goods and keep up the reputation of the destination, producers need to gain a mark-up on price that might not be sustained in a competitive market. Hence the decline in "high-paying" demand segments, increasingly substituted by visitors with lesser quality expectations. The proposed set-up allows the identification of appropriate policy instruments to reverse this process.
Keywords: Sustainable tourism, heritage, excursionism, moral hazard, reputation
JEL Classification: L83, R11, R32
Suggested Citation: Suggested Citation