Handbook of Tourism Economics

The following sections are included:

• CONTENTS

• PREFACE

• ABOUT THE EDITOR

This chapter provides an overview of the contributions to this handbook and this is accompanied by some editorial observations. The range of these contributions is wide. They cover the demand for tourism, the supply of tourist services and include studies of particular segments of the tourist industry. Attention is also given to the application of cost-benefit analysis and public economics to tourism economics as well as to the importance of inter-industry analysis and tourism statellite accounts in assessing the economic consequences of tourism. International economic aspects of tourism are analysed as well as tourism's role in economic development. The interconnection between tourism, conservation and the state of the environment is emphasised.

This chapter reviews the conceptual and theoretical foundations underlying the specification of empirical tourism demand models. It begins with a review of basic concepts, theories, and the literature on the determinants of tourist flows. Its goal is to synthesise a conceptual framework within which issues in relation to tourism demand can be analysed systematically. The process of modelling and the specification of empirical demand models are discussed. This discussion includes a critical and up-to-date survey of the state of the art in consumer demand analysis, theoretical background, modelling procedures, and specification of theoretically consistent empirical demand models. The relative merits of the established demand systems and approaches are reviewed; the concluding remarks in this chapter are on the relative merits of each approach. Criteria are proposed for choosing between different available empirical demand models.

The objective of this chapter is to review the issues confronting applied researchers who rely on established demand systems to analyse specific issues in relation to tourism demand. In doing so, it concentrates on associated modifications and extensions to the base models proposed and applied in the recent literature, along with related model specification and econometric issues. The modifications include incorporating structural changes, seasonality, and other exogenous events that affect tourism demand over time. Extensions include dynamic versions of the base models. Finally, issues in relation to specification and estimation of singular demand systems are reviewed. The chapter concludes with an example of the way in which economic parameters drawn from empirical models are interpreted.

Different tourists have different needs. This fact is widely acknowledged both among tourism researchers and in industry. As a consequence, market segmentation has developed to become a very popular marketing strategy for destinations and tourism businesses. They aim to develop a competitive advantage by identifying suitable segments of tourists and offer them the tourism service that will most satisfy their needs. Market segmentation strategy, however, can only be as good as the market segmentation analysis used as its basis. This chapter begins with a brief history of tourism market segmentation, outlining successful approaches as well as sub-optimal standard approaches that have developed over the last few decades. Then it offers a step by step guide to data-driven market segmentation with the aim of ensuring maximum validity of tourism market segmentation studies.

By using an error correction model, this study seeks to examine how tourism demand in Singapore depends on the ASEAN region (particularly Malaysia, Indonesia, and Thailand) besides other traditional factors such as income and prices. Although regional cooperation in trade has been widely researched, regional cooperation in tourism demand has not received much attention from tourism experts and this chapter therefore, breaks new ground by estimating the influence of ‘neighbourhood effects’ on tourism demand. Based on empirical results, this study suggests some policies for future development of Singapore's tourist industry.

Increased political violence among the deprived sections of the society, particularly the forest-dwelling tribes is emerging as a major internal security threat in India. Widening disparities in income and opportunity, both real and perceived, between agriculture and the non-agricultural sectors and between rural and urban areas is the root cause of this tension. A pseudo-civil war in 165 districts (about one-third of the total geographical area of India) is not only diluting the exceptionally rapid growth of the Indian economy but is also destroying the growth of domestic tourism by reducing inter-state movement of prospective visitors. Therefore, the main aim of this contribution is to assess the demands and cost consequences of violence affecting tourists in India. During the past three years, India emerged as a travel rich nation by doubling the number of domestic visits. The number of domestic visits in 2009 was estimated to be 659 million. The regional tourist offices of India also estimated an average 80% fall of tourist visits to disturbed places. The corresponding loss in tourist expenditure may add up to Rs 98.6 billion a year and after taking account of the tourist multiplier effect (using a multiplier value of 2.5), will add up to Rs 2.46 trillion per year.

The development of international activities in the 1970s and 1980s stimulated considerable academic interest and analysis. However, few studies have focused on the internationalisation of the tourism sector. Only recently has tourism started to receive more attention from international business scholars, especially its hotel sector. Although classified as part of the service sector, the hotel sector has distinctive characteristics that differentiate it from other service industries, thereby presenting a challenge and calling for a separate research regarding decisions about the mode of corporate development. This chapter provides theoretical background on the internationalisation of the firm, and reviews the most influential theories, models and paradigms used to analyse the internationalisation of the hotel sector.

This chapter examines and analyses the transformation of the lodging sector in China by applying three economic concepts of development and trade: Structural change, catch up and internationalisation. It discusses the structural change in China's lodging sector affected by the structural change in China's overall economy by reviewing China's economic reform and development since 1978. It analyses the catching up efforts by the Chinese hotel industry to improve operating efficiency and service standards and the emergence of Chinese domestic hotel chains. The internationalisation of hotel firms, as reflected first in inward foreign direct investment of equity and human capital and then in outward foreign direct investment by Chinese domestic firms, is examined to identify current hotel development trends, strategies and challenges in the global economy. It concludes with an assessment of future development prospects of China's hotel industry when China becomes globally the leading tourism importer and exporter and has the largest domestic tourism market in the world.

This chapter focuses on the role of travel agencies and tour operators in the tourism system and their ability to adapt to constant changes in an increasingly dynamic tourism market. Special emphasis is given to the impact of information technology. The economic objectives of these entities are explained, as are the consequences of the consolidation processes that have helped to create a leisure travel value chain which provides customers with a complex service from a single source. All of these factors have brought significant changes to the structure of the tourism industry.

This chapter explores the importance of the transport sector for tourism with primary emphasis on air transport. Further to the introduction, Sec. 2 discusses the systemic relationship between the two sectors, applying, among other things, the characteristics theory of demand in the context of air transport and tourism. Section 3 then focuses on the airline industry examining alternative business models, including the low cost one. Section 4 examines developments in airports and their role as gateways to tourism destinations. Section 5 discusses the importance of information and communication technologies for air transport while Sec. 6 summarises and concludes by arguing that the strong interrelationship between the air transport sector and the tourism industry should be better understood by the authorities responsible for devising policies related to regional economic development.

Richard Butler's tourism area life cycle envisions tourism destinations to evolve in stages from exploration to rapid growth followed by slackening, stagnation, and even decline. The eventual slow-down in tourism growth is attributed to the destinations reaching their physical and social carrying capacities. This chapter examines the evolution of Hawaii as a tourism destination from 1922 to 2009. We demonstrate that tourism growth in Hawaii has declined not because the destination has reached its carrying capacity but primarily because of slowing technical progress in passenger air transportation and competition from newer destinations. We conclude that for destinations that depend on transportation improvements to attract tourists, technical progress in transport may provide a better explanation of the evolution of their destinations than their carrying capacities.

The variety of visitor attractions is large and there are endless variations in terms of the product concept. However, the latter is inextricably bound up with the assessment of market potential and vice-versa. Thus, while there is a clear demand for entertainment attractions, success is related to the creativity of the design and its appeal, namely the ‘imagescape’. Location is also linked to market assessment and the imagescape; heritage attractions may have little choice as to their location, whereas created entertainments have the possibility of locating where they can maximise visitor potential. The pattern of ownership has a major influence on the market structure and pricing. That said successful attraction development is about the creation of imagescapes that have strong associations for visitors, conform to taste and fashion, and are flexible enough to encourage repeat visits.

This chapter deals with the emergence of the market for medical tourism in developing countries. In this case, patients travel from highincome countries to get treatment. The factors that have led to a growth in demand for this industry are discussed. In addition, evidence is provided that this industry is growing. The costs and benefits are outlined of this industry to the medical tourist as well as to citizens in the destination country. This chapter finishes by exploring potential incentives and government regulations that could ensure that the costs and concerns associated with the industry are reduced.

Higher education has long been marked by externalities and information asymmetries. In a globalised world economy, universities find themselves in an increasingly competitive market, no longer generally serving essentially local markets. At the institutional level, increased priority is accordingly placed on reputation, ranking, marketing activities, and teaching performance. Institutional ranking still depends essentially on research performance, but conflicting tensions manifest themselves regarding research and teaching activities. In some cases, fees from non-domestic (overseas) students now account for a significant proportion of annual operating costs of universities, and marketing activities are an increasingly important part of university life. At a more general level, the influx of foreign students makes its mark not just on the host institutions, but also on the host economy. Education is now sometimes a major export activity, e.g., in Australia. As such it is a stakeholder (like tourism more generally) in national economic debates about exchange rates and major determinants of fluctuations in them, e.g., as the current Australian mineral boom pushes the terms of trade and the national exchange rate higher, to the detriment of education exports. With large numbers of Chinese, Indian and other students from developing nations providing a large pool of fee payers looking for both a university and a country to study in, academic offerings — combined with ability to acquire English (or other) language proficiency, and even visa and residence rights — have taken on an enhanced economic significance as ‘education tourism’ asserts itself as a major industry.

The revolutionary innovations in amusement parks, starting with the ‘Bakken’, north of Copenhagen, in 1583 and given modern form as themed entertainment attractions by Disney at Anaheim, California in 1955 have spread outwards through successive imitation and adaptation by the amusement industry. The chapter reviews some of the historical aspects of amusement parks, presents some key data and then goes on to discuss economic and development issues, including park planning and design. Concepts of creativity and issues of failure are examined in order to define the boundaries of what may be currently considered good practice to minimise the downside risks that can result in financial, if not project, collapse. Numerous examples are given so as to establish trends.

Cruising for leisure purposes, whether on the ocean, along coasts or rivers, has demonstrated consistent growth as a tourism activity. Cruising can be divided into a number of sub-markets, within which most supply is oligopolistic in nature, and concentration is increasing. Cruise lines pursue various strategies, but it is shown that pricing is not the most significant, as demand, cruise products and prices are amorphous. Unlike fixed-location tourism, cruising is a footloose product, where factor inputs may be sourced globally and cruise lines may have little connection with port destinations served on itineraries. Operationally, economies of scale, capacity and revenue management are important tools for operators, as vessel sizes increase and operational management and marketing become more sophisticated. The impacts on local and national economies are in many ways analogous to those of tourism in general.

Beaches are arguably the most valuable of coastal tourism assets. Around beaches, communities develop and tourism markets expand, often resulting in intimate human interaction with diverse environments. This chapter provides an overview of economic research on beach and surf recreation and tourism in existing and expanding markets, including a description of the techniques most commonly used to estimate the economic impact and value of beach recreation and some of the challenges around developing accurate estimates of use and value. Better understanding of the drivers and values for beach and surf tourism is an important consideration for optimal management of coastal tourism and recreation assets. This is brought into sharper focus as a result of the frontline exposure of many of these assets to the impacts of climate change. The importance, utility and benefit of beach valuation studies are highlighted through two detailed cases that demonstrate the use of a range of techniques and applications. The authors conclude the chapter with a discussion on the rationale for the development of a framework to more accurately identify and value beach and surf tourism and recreation assets and how it might best be applied to improve management outcomes.

In tourism, more than in any other sector, the investor in a big project is neither a company nor a tourism entrepreneur but the public sector. Indeed, many projects belong to the general tourism infrastructure, and the benefits do not only accrue to the paymaster, who may also consider their negative effects. In other words, externalities must be taken into account. This chapter focuses on five topics. First, it focuses on the nature of investment appraisal and explores the difference between micro and macro approaches. Secondly, attention is paid to externalities in tourism. The third section deals with the identification of cost and benefit items or the cost-benefit scheme, where Environmental costs are an important part of the scheme. In the same section, we proceed with the quantification and valuation of cost and benefit items and the calculation of the NPV and IRR. A fourth part of this chapter is focused on CBA versus economic impact analysis. In a last section, we illustrate the application of CBA in the tourism sector with a practical example.

Public economics covers the welfare economics of social (as opposed to private) interests and aspects of public finance. This chapter considers the application of two methods of social economic evaluation of tourist developments, namely, social cost-benefit analysis and economic impact analysis. The role of social cost-benefit analysis in the assessment of tourism is illustrated by its application to the evaluation of inbound tourism. This is followed by a discussion of taxes on tourism and subsidies to promote it. The principle focus is on hotel room taxes. The analysis of taxes on tourism involves both public finance and welfare economics issues. The scope for and desirability of applying the user-pays principle to tourism is then examined.

Drawing on expenditure and survey data from the Gold and Sunshine Coasts in Queensland, Australia, this chapter compares expenditures on beaches relative to their recreational benefits. Beaches are found to be exceptional investments. The comparison of the two councils also provides insights into their relative capacity to adapt to the adverse impacts of climate change. The Gold Coast can rely to some extent on historical large investments in infrastructure to defend itself against change. In contrast, the Sunshine Coast has more options which may lower the cost of adaptation e.g., it can rely more heavily on retreating from change in certain locations because of historical investment in dunal buffer zones. However, historical investment patterns impact in different ways on the environmental quality of beaches and the benefits provided to users and non-users. Limitations and areas of future research are also outlined.

The economic impacts of tourism have been estimated and evaluated via a range of different methodologies by researchers and policymakers for many decades. This chapter discusses research found in the tourism literature that has been undertaken using Computable General Equilibrium modelling. Initially, generic tourism booms and busts were modelled with this methodology before other areas of interest such as tourism and trade; tourism and taxation and disasters, (both man-made and natural) and their impacts on tourism were modelled. The economic impact of special events such as the FIFA World Cup and the Olympics are another branch of research that has received significant attention by tourism economists implementing CGE models. After an evaluation of the main contributions in this area, this review highlights future directions of tourism and inter-industry modelling (such as the integration of environmental and energy accounts) with conventional tourism economic impacts to explore sustainable tourism economic impacts.

Two important tools employed increasingly by tourism economists to enhance our knowledge of the economic significance of tourism are Tourism Satellite Accounts (TSAs) and Computable General Equilibrium (CGE) models. But the relationship between the two is often not fully understood by tourism stakeholders. The chapter first outlines the nature and importance of TSAs as a measure of the economic contribution of tourism to an economy. TSAs based estimates of the direct contribution of tourism in Australia are provided to illustrate the use of this tool. The chapter then discusses the importance of developing TSAs at the regional level and the approaches that can be employed (bottom up, top down, mixed), as well as the limitations of TSAs as a policy instrument. It then discusses CGE modelling as a tool of economic impact analysis providing CGE based estimates of the economic impacts of increased inbound tourism to Queensland to illustrate the use of this technique. The analysis is expected to enhance stakeholder's understanding of the separate roles that TSAs and CGE modelling can play in determining the economic significance of tourism to an economy.

After two decades of development and refinement, the tourism satellite account (TSA) has been touted as the most comprehensive way to measure the economic contribution of tourism to a destination's gross domestic product. However, recent literature has pointed out that the TSA is deficient in that it does not yield the indirect contribution of tourism to GDP. This paper shows that the TSA cannot be used to estimate the indirect contribution unless the import content of tourism is zero. The indirect contribution can be estimated using input–output (I–O) multipliers. We illustrate these points using Hawaii as an example.

This study presents an integrated model to estimate the economic impact of tourism in the Central Region of Portugal. In order to accomplish this objective a visitor survey was undertaken and 2,876 responses were collected to measure tourist expenditures. The tourist multipliers (output, household income and employment) were obtained through a regional input–output model. The model developed in this study was used to estimate the different types of economic impacts (direct, indirect and induced) and to identify the segments of greatest economic value to Central Region of Portugal. The results obtained provide useful information for the definition of marketing and development strategies in the region.

An important facet of globalisation is the international fragmentation of production. This phenomenon has been studied for goods and many services but has so far been neglected in tourism studies. In this chapter, we attempt to rectify that by providing theoretical and empirical evidence of various aspects of the international division of tourism production (IDTP). In the theoretical section, we use the traditional Ricardian paradigm to show that the IDTP is a conceivable possibility for tourism and may even be highly likely in a context of rapidly decreasing costs of transport, trade and communications. The three theoretical cases shown here can be interpreted, in a historical perspective, as describing the gradual opening of tourism to international trade in Europe. The empirical section is based on the revealed comparative advantage index of Balassa to study the pattern of specialisation of 36 countries (18 OECD countries and 18 developing countries) in two segments of the tourism product system. Our results confirm that tourism production has been globally fragmented over the period 1980–2006, but that the pattern of specialisation of the two groups of countries evolved differently over time.

An expansion of inbound tourism increases the demand for locally produced non-traded goods and services, thereby raising the relative prices of them. In the short run, the increase in tourism can bring benefits in terms of raising tax revenues, increasing sectoral employment and improving environmental quality. Nonetheless, in the long run, costs for the increase in tourism may arise. A tourism boom can cause ‘Dutch Disease’ in lowering capital formation of the non-tourism sectors. Moreover, the expansion of tourism can reduce foreign reserves of the economy. Therefore, how to balance the short-run benefits versus long-run costs is of concern to policy makers in attracting international tourists to the economy.

This chapter examines the existing studies of the relationship between inbound tourism and economic growth. After a brief discussion of general economic growth theory and the reasons why a positive causal relationship may exist between export sectors and economic growth, it then delves into the theoretical basis for an inbound tourism-led growth relationship. Following this, the relatively new empirical literature on the causal relationship between tourism and growth is examined in detail. Both theoretical and empirical evidence to date suggest that there is good reason to believe that inbound tourism promotion can lead to increased economic growth, but the literature is still relatively narrow. Deeper research into the specific mechanisms behind this relationship is needed to inform our understanding of the true growth impacts of export tourism expansion.

Economic debate on tourism development represents only a partial development view, yet in our globalised market economy, it is still integral to any development debate. There is a consensus among tourism economists that, tourism provides positive economic developmental benefits, which are discussed at length in the literature (Bull, 1995; Gartner, 1996; Sharpley and Telfer, 2002; Tisdell, 2005; Tribe, 2005). There is enough evidence that tourism has a potential to influence the economic development of the host region or country and reduce the economic gap between developed and less developed areas; that it is a valuable source of foreign currency earnings that less developed countries need for economic development; that it generates employment opportunities; and last, but not least, it creates earnings through the exploitation of the inherited natural and cultural attractions of the host country. Importantly, however, tourism impacts are not only unidirectional, they might be positive or negative; they are very complex, temporary and might be location and time specific and dependent on many factors. Thus it is also unrealistic to expect tourism to be a magic wand that can solve all the problems of underdevelopment. Therefore, this chapter reviews briefly the main economic developmental impacts of tourism but focuses principally on fundamental issues and discusses many factors and situations that may enhance or reduce the tourism developmental potential of a given regional or national economy.

Tourism as an economic activity in Goa hardly existed before the 1960s. There were limited tourist facilities, either in the form of accommodation or other amenities. After its independence, the government initiated a programme for rapid expansion of accommodation facilities and related tourist services, and beach tourism was adopted as a key sector for Goa's development. As a result, Goa became a major international tourist destination. The tourism industry has contributed significantly to the economic development of the territory, but also to the transformation of Goa's coastal areas. This chapter discusses the development of Goa as a tourist destination, examining the economic, socio-cultural and environmental impacts of such tourism development.

Arunachal Pradesh, the eastern most state of India, is one of the ‘hotspots’ of global biodiversity. This state is a micro-hotspot within the larger Eastern Himalayas hotspot. Based on satellite imagery, the forest area in this state constitutes around 81.91% of its total area, which is one of the highest of any state in India. The conflict between development process and protecting the rich biodiversity of Arunachal Pradesh is becoming increasingly apparent. Arunachal Pradesh has a unique opportunity to map out a development path that is sustainable and ecologically sound. Despite being rich in its natural resource endowment, the state is one of the most backward states of India. In these circumstances, the promotion of tourism appears to be one of the best ways of generating internal revenue, employment, income and accelerating the pace of development in this state. In addition, the promotion of nature-based and ecotourism can play an important role in the State's strategy for conserving its rich forest resources as well as its cultural heritage. Hence, the present chapter deals with the opportunities and challenges of developing tourism in this remote state of India.

An increase in the number of tourist arrivals is regarded as an important indicator of the development of a tourist site. At Wulingyuan, a World Heritage site in Hunan Province in China, rapid growth in the tourist arrivals from Korea has resulted in the so called ‘Korean Wave’. This chapter identifies the causes and impacts of this rapid increase in the number of inbound tourists and provides a generic model to enhance our understanding of this tourism growth. Korean arrivals have come to dominate tourist arrivals at Wulingyuan. Why? How did it occur? By using empirical data from surveys of local tourist practitioners, this chapter concludes that the initial, pull, and operating forces were generated by the market, but subsequently push and essential forces were supplied by the public sector in order to stimulate tourism growth from Korea. Inbound tourism in China needs to be initiated by market demand, but requires government support subsequently. The combination of market and government mechanisms jointly provides a model for inbound tourism marketing in China and possibly elsewhere.

Over the last two decades, tourism has become the major driver of economic growth in many Pacific Island countries (PICs), most notably Fiji, Cook Islands, Vanuatu and Samoa, and it is becoming increasingly important in others. Conventionally, its main economic impact is generally considered to be in providing foreign exchange and employment, and contributing to the gross domestic product. While statistical data are often unreliable or even non-existent, such indices are important, and an attempt is made in the paper to compare the differential economic impacts of tourism in PICs. At the same time, other and less obvious forms of economic impacts are also relevant. The structure of the tourism industry, especially the hotel and guest house sector, can be quite different across island states, and whereas new institutional players, in the form of transnational hotels, have an important role in tourism development in Fiji, they are much less apparent in such PICs as Tonga, Samoa and Cook Islands. In addition, forms of poverty alleviation other than those conventionally discussed are also relevant. Further benefits, even less easy to categorise, come with the more ad hoc exercise of corporate social responsibility by (large and small) hotels, which includes, but is not restricted to, assistance in medical and educational projects. This chapter discusses the above issues and assesses the region's potential for future tourism, with due reference to the need for political stability and a stable global financial environment.

Appropriate tourism policy needs to be developed relative to a wide range of public goods and externality issues at various levels. Environmental and conservation issues and values contribute substantially to tourism experiences where rent, income and the optimum scale of operation and development need to be appraised. On the other hand, a range of environmental externalities in the form of pollution, congestion and general degradation require appraisal and remedial policy. Effective tourism policy will need to be developed to balance a range of objectives which may appear to be pulling in different directions.

The view that the pursuit of economic goals and environmental goals are not mutually exclusive has become prominent in recent economic literature. Their consistency is only possible if tourism is developed in a sustainable manner. Therefore, the long-term viability of the tourism industry in any country is dependent on the maintenance of natural, cultural and historical attractions. This chapter deals with the economic meaning of sustainable tourism. One interpretation is that it involves the maintenance of a constant stock of tourism artifacts, maximising tourism services from these, and minimising the energy level necessary to maintain that constant stock. This chapter also argues that even with sustainable tourism management, there will always be an interaction between tourism and the environment. Thus this chapter will not only be concerned with recognising and monitoring the impacts of tourism on the environment, but also with applying management measures to minimise its detrimental effects on the environment, with the aim of securing the long-term future of tourism resources.

In a world that is experiencing its sixth mass extinction of species, ecotourism has been hailed as a potential saviour of nature. In order to fulfil such high expectations and create a symbiosis of business, community development and conservation, ecotourism:

• has to be established in regions that are ecologically especially valuable — a central data bank on species and their distribution may give recommendations for ecotourism development,

• can only thrive in relatively secure countries having a minimum provision of public goods — restrictions on national sovereignty in the case of failed states or military interventions against poachers and illegal loggers may be necessary,

• has to be attractive for paying customers — where the classical ecotourism product fails, supporting markets such as hunting or gambling tourism may have to be developed,

• has to be careful to preserve its resource base-ecological accounting, international monitoring and the setting of industry standards could be valuable instruments,

• has to be politically feasible and socially acceptable realpolitik and reformed aid may help to balance the interests of different stakeholders.

Despite all the difficulties in establishing the appropriate concepts and monitoring their implementation, ecotourism can play a central role in helping part of biodiversity through the survival bottleneck.

Certification is heralded as one of the most effective measures for advancing the sustainable tourism agenda. Yet, if it is to do so, it must encourage tourism operators to alter their behaviour. When assessing the success of a certification scheme, it is, therefore, essential to look at the degree to which the scheme engages those who would otherwise be uninterested — hypothesised here to be those who are primarily motivated by profit. Reasoning that certification can raise profits if it raises revenues and/or decreases costs, this chapter examines both existing literature and new empirical data on the popular Australian ECO Certification scheme to draw tentative conclusions about the circumstances in which certification is likely to increase operator revenues. It finds little evidence to suggest that certification will raise revenues unless consumers can, simultaneously, be convinced that certification is capable of ‘making a difference’. The policy implication of this finding is that certification schemes must be able to clearly articulate and market this message to tourists if they are to attract more voluntary members and thus advance the sustainable tourism agenda. This is, of course, unless they are concurrently able to lower operator costs — a topic worthy of future study.

This chapter considers national parks and other protected areas as tourism attractions, with examples from Australia. The focus in this chapter is on measures of economic value and impact based on expenditure by tourists. National parks are important tourist attractions in Australia — a recent national level study found that over one-fifth of all tourism expenditure was incurred by people who visited national parks as part of their trip. This chapter places the expenditure approach into the context of economic valuation methods and discusses the most appropriate ways to separate out the attraction effect of the national park from all tourism expenditure. A number of case studies conducted in Australia at regional and state levels are included to illustrate methodology and results. Managers of national parks and protected areas, government funding agencies, the tourist industry and regional communities are all interested in gaining an appreciation of the economic value of these areas in order to inform decisions on appropriate funding for management and presenting and promoting these areas for sustainable tourism.

In Japan, several rules for community-based ecotourism management (CBEM) and the management of nature apply to the Ogasawara Islands. This chapter provides an institutional history of the CBEM system in Ogasawara and the process of developing self-imposed management (SIM) rules in order to overcome problems of common pool resources (CPRs). It focuses on SIM rules and their appropriate use on Minami-jima Island under the agreement of guidelines (AGs) between governments. Failure to comply with the SIM rules under AGs does not result in a legal penalty but the rules have gradually become more comprehensive and concrete under the Guidelines for the Protection and the Appropriate Use of Nature in the Islands of Tokyo (Governor's Decision Making) in July 2002. In other words, the SIM system relies on the leadership of a public authority (using the guidelines in the agreement) to address problems of CPRs. Institutional management of CBEM on Minami-jima Island has been successfully implemented by using the SIM rules under AGs for the coexistence of both nature conservation and local economy. After the registration of Ogasawara Islands as a World Heritage Site in June 2011, the SIM rules are going to face new challenges for CBEM due to greater environmental pressures expected as a result of an increasing number of visitors in the near future.

Ras Mohammed (Egypt) is home to some of the most spectacular coral reefs and best known SCUBA diving areas in the world. Such uniqueness makes the park a major recreational attraction and the cornerstone of ecotourism within South Sinai. A total of 495,382 people visited Ras Mohammed in 2008–2009. In order to successfully achieve the dual goals of reef protection and income generation, the management of the park needs to understand visitor preferences for reef quality, congestion level, dive sites, entrance fees and other attributes of the park. Management plans and tourist opportunities should be based on these preferences as well as the physical characteristics of reef sites. An ecosystem services approach that can support the management of coral reefs in the context of the seascape and takes into account the impact of the land use should be adopted. The ecology of reef services, the benefits, the beneficiaries, the scales, and the threats to reef system should be better understood for efficient planning and management. Armed with a broader, deeper knowledge of the different aspects of the ecosystem, we will be better equipped to safeguard the future of coral reefs.

The following sections are included:

• AUTHOR INDEX

• SUBJECT INDEX