The Effects on Environmental Investment of Changes in Tourism Demand

TOURISMOS, Vol. 2, No. 2, Autumn 2007

7 Pages Posted: 3 Oct 2006 Last revised: 6 Mar 2018

See all articles by Elvio Accinelli

Elvio Accinelli

Facultad de Economía de la Universidad Autónoma de San Luís Potosí

Juan Gabriel Brida

Universidad de la República

Edgar Javier Sanchez Carrera

University of Siena - Department of Economics

Juan Sebastián Pereyra

Universidad de la República - Facultad de Ciencias Económicas; El Colegio de México

Date Written: October 2006

Abstract

In this short paper we analyze the impact of tourist demand in hotel rooms on the investment of hotels on environmental quality. In particular we show that when income of the tourists increases, then in order to maintain the demand for rooms, the hotels must increase the investment on the environmental quality of the region where there is an increment of the tourist activity. In the particular case where we have three different hotel chain located in three different tourist regions, we show that the incentive of hotel chains to invest in environmental quality depends on the demand in days of rest on the part of tourists and on the level of aggregate income. We also show that if total income increase then the incentive to invest in environmental quality increases in the region where the price of room is lower.

Keywords: Environmental investment, Hotelling competition, service quality, sustainable tourism

JEL Classification: L83, Q21, Q26

Suggested Citation

Accinelli, Elvio and Brida, Juan Gabriel and Sanchez Carrera, Edgar Javier and Pereyra, Juan Sebastián, The Effects on Environmental Investment of Changes in Tourism Demand (October 2006). TOURISMOS, Vol. 2, No. 2, Autumn 2007. Available at SSRN: https://ssrn.com/abstract=934325 or http://dx.doi.org/10.2139/ssrn.934325

Elvio Accinelli

Facultad de Economía de la Universidad Autónoma de San Luís Potosí ( email )

Av. Pintores S/N
San Luis Potosí, San Luis Potosí 78263
Mexico
52444 8131238/120 (Phone)
52444 8131238 (Fax)

Juan Gabriel Brida (Contact Author)

Universidad de la República ( email )

Av. 18 de Julio
Montevideo, 1968
Uruguay

Edgar Javier Sanchez Carrera

University of Siena - Department of Economics ( email )

Piazza S. Francesco, 7
Siena, I-53100
Italy

Juan Sebastián Pereyra

Universidad de la República - Facultad de Ciencias Económicas ( email )

Gonzalo Ramírez 1926
CP 11200 Montevideo
Uruguay

El Colegio de México ( email )

Gonzalo Ramírez 1926
CP 11200 Montevideo
Uruguay

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