Tourism and Urban Transport: Holding Demand Pressure Under Supply Constraints
XREAP No. 2008-14
38 Pages Posted: 25 May 2011
Date Written: December 1, 2008
Abstract
Scholars and local planners are becoming increasingly interested in the contribution of tourism to economic and social development. In the European cities that currently lead the world rankings for tourist arrivals, local governments have actively promoted tourism. Mobility is an essential issue for tourists visiting large cities, since it is a crucial factor for their comfort. It also facilitates the spread of benefits across the city. This study uses an international database of European cities to examine whether city planners respond to the additional demand for urban transport by extending service supply. Our results confirm that tourism intensity is a demand-enhancing factor in urban transport. However, cities do not seem to address this pressure by increasing services. Tourism appears to exert a positive externality on public transport, since it provides additional funding for these services, but it also imposes external costs on resident users because of the congestion caused by supply constraints.
Keywords: Tourism, Urban Transport, Local government
JEL Classification: H70, J68, L83, L98, R41
Suggested Citation: Suggested Citation
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