The Economics of Tourism and Sustainable Development

The Economics of Tourism and Sustainable Development

The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development

Edited by Alessandro Lanza, Anil Markandya and Francesco Pigliaru

Although economics has increasingly become a technical subject, this accessible book aims to present important economics results and relate them explicitly to the policy debate. Using a coherent analytical framework, this unique approach offers prescriptions for moving tourism, and economic development more generally, closer to a sustainable ideal. The authors begin by studying the macroeconomic effect of tourism in terms of growth performance and sources of growth. They also examine how the tourism–growth link is affected by the role of imports in the economy, and how tourism impacts upon land use. Further chapters investigate the important issue of forecasting visitor numbers and explore the need for a comprehensive accounting framework to take account of ecologically sustainable tourism. The authors also examine the microeconomic aspects of sustainable tourism and analyse the increasing popularity of environmentally friendly holidays.

Chapter 11: A choice experiment study to plan tourism expansion in Luang Prabang, Laos

Sanae Morimoto

Subjects: development studies, tourism, economics and finance, environmental economics, environment, environmental economics, tourism, geography, tourism


Sanae Morimoto 1. INTRODUCTION Tourism development is often a very important strategy for fostering economic growth in developing countries. Tourism generates a variety of economic benefits such as foreign exchange earnings, employment, income and government revenues.1 However, the budget and human resources for tourism development are usually very limited in these countries, and efficient planning is required. Planners of tourism development need to understand tourists’ demand for the destination and activity and mode of transport in order to plan effective expansion. This chapter presents the potential use of choice experiment (CE), one of the stated preference (SP) approaches, in planning effective tourism expansion. The advantage of the approach is that it makes it possible to analyse tourists’ preference for the bundle of attributes of tourism separately. For example, tourists may make their choice based on what to see, mode of transport and cost. Another advantage of this approach is that it allows analysts to investigate tourists’ preference beyond the existing set of alternatives, which cannot be done in revealed preference (RP) approaches. This chapter, therefore, applies the CE approach and also tries to plan the most preferable tour from the estimation results. As a case study, this chapter deals with the tourism development in Luang Prabang, Lao P.D.R. (Laos). Section 2 explains why this study uses the CE approach rather than other environmental valuation approaches by reviewing other studies. Section 3 contains a brief description of tourism in Laos. Section 4 sets out the methodology of...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information