Economics of tourism & growth for small island countriesTourism Management (2016)
We theoretically analyze the impact of changes in foreign income from tourism source countries on the growth of tourism dependent small island economies. Using a general theoretical construct, we attempt to answer the question of how price elasticity of demand, income elasticity of tourist and the degree of competition in the service sector influence the economic development of small economies. One of the main results is that politicians may consider applying policies which lead to a competitive environment in the service sector to maximize growth and the consequent labor income share.
Publication DateFebruary 4, 2016
Citation InformationPeter J Stauvermann and Ronald R Kumar. "Economics of tourism & growth for small island countries" Tourism Management (2016)
Available at: http://works.bepress.com/ronald_ravinesh_kumar/38/