Econ 320/TIM 320: Introduction to Tourism Economics Course Description Tourism is one of the fastest growing industries in the world and is Hawaii s largest industry. From an economics perspective this course examines tourism and explains how people make decisions on their leisure and how the tourism industry works. Topics include the determinants of consumer demand for leisure travel; structure of competition among suppliers of tourism services; benefits and costs of tourism development to the host community; government s role in the taxation, subsidy, regulation and protection of the tourism industry; tourism s impact on the environment; and sustainable tourism development. The course uses extensive examples from Hawaii and the Asia-Pacific region. Prerequisite: Econ 120 or Econ 130 or consent of the instructor Instructor: Nicole Lai Class: Tuesday and Thursday at 1:30pm 2:45pm Office: Saunders Room 509 Phone: 956- Email: munl@hawaii.edu Office Hours: Tuesday and Thursday at 3:00 4:00 pm, and by appointment. Texts: James Mak, Tourism and the Economy (Honolulu: University of Hawaii Press, 2003). State of Hawaii Dept. of Business, Economic Development and Tourism (DBEDT), Sustainable Tourism Project, Socio-Cultural & Public Input Draft Summary Report (May, 2004); also Modeling Study Draft Report (July 29, 2004). Assigned readings. Useful information websites: The most up-to-date day-to-day news about travel and tourism: http://www.twcrossroads.com/ State of Hawaii, Department of Business, Economic Development and Tourism (DBEDT): http://www.hawaii.gov/dbedt/tourism.html Click on Statistics and Economic Information.
Instructional methods: This course is conducted through interactive lectures, case study discussions, and group presentations. Course requirements: Students are expected to complete homework and weekly reading assignments. Each student is also expected to submit one short research paper (about 6 pages long plus endnotes and references.) Also, a student must take a mid-term and a final exam. Students are encouraged to participate fully in the class. Grading: Research paper 25% Homework assignments, attendance and class participation 10% Group presentations and discussions 15% Mid-term exam 25% Final exam 25% Final Exam: No exceptions will be granted on the date of the final exam.
Tentative Schedules and Reading Lists I Introduction * What is tourism? * What is tourism economics? * The nature of the tourism product. Readings: (1) James Mak, Tourism and the Economy, Chs 1-2 II. Demand for Pleasure Travel (2) Travel and Tourism The Economist, January 10, 1998, pp. 3-15. THE TOURIST Readings: (1) Mak, Chapter 3. (2) James Mak, Lonny Carlile, and Sally Dai, Impact of Population Aging on Japanese International Travel to 2025, Journal of Travel Research (forthcoming). (3) Wietze Lise and Richard Tol, Impact of Climate on Tourist Demand (The Fondazione Eni Enrico Mattei, June 2001), accessible at http://www.feem.it/web/activ/_activ.html III Demand for Intermediate Services (A) Why some travelers choose to travel on package tours Readings: (1) Mak, Chapter 4 (B) Why some travelers use travel agents? Readings: (1) Mak, Chapter 5 (2) Global Aviation Associates, The Economics of Travel Distribution in an Internet Driven Environment (Washington D.C.: July 2002). IV Once There: Determinants of Trip Duration and Tourist Spending -An integrated theory of tourist behavior: a sketch.
Readings: (1) Mak, Chapter 6. (2) James Mak and Edward Nishimura, The Economics of a Hotel Room Tax, Journal of Travel Research (Spring, 1979), just pages 2 and 3. V Competition in the Tourism Industries Readings: (1) Mak, Chapter 7 VI Getting You There THE SUPPLIERS (2) General Accounting Office, Maritime Law Exemption: Exemption Provides Limited Competitive Advantage, but Barriers to Further Entry under U.S. Flag Remain (Washington D.C.: GAO, Feb. 2004). (Norwegian Cruise Line Hawaii Exemption from the U.S. Passenger Services Act) Readings: (1) Mak, Chapter 8 (2) U.S. Department of Transportation, International Aviation Developments: Global Deregulation Takes Off (First Report) (Washington D.C.: December, 1999). (3) Clive L. Morley, Airline Alliances and Tourism (2004) (4) Bush Budget proposal would force Amtrak into Bankruptcy, Travel Weekly Daily Bulletin, Article # 45350. (5) Irene Croft Jr. Unraveling the Mysteries of Airfares, The Honolulu Advertiser, January 23, 2005, p. E1. (6) Airline Industry in Dire Straits as Majors Risk Collapse, Travel Weekly Daily Bulletin, Article #45358. VII Barriers to International Tourist Travel Readings: (1) Mak, Chapter 9. Guest Lecture: Christopher Edmonds (EWC), China s Approved Destination Status and the impact of its liberalization on potential Chinese overseas travel.
THE HOST COMMUNIY VIII Tourism s Place in the Host Economy Readings: (1) Mak, Chapter 10. (2) World Travel and Tourism Council (WTTC), Executive Summary, Travel and Tourism Forging Ahead, The 2004 Travel & Tourism Economic Research, http://www.wttc.org/2004tsa/frameset2a.htm (3) Kuhbach, Planting, and Strassner, U.S. Travel and Tourism Satellite Accounts for 1998-2003 (Wash. D.C.: Bureau of Economic Analysis, September 2004). IX Benefits and Costs of Tourism to the Host Community Readings: (1) Mak, Chapter 11. X Taxing Tourism Readings: (1) Mak, Chapter 12 (2) James Mak, Tourism Promotion, Honolulu Convention Center and the Hawaii Tourism Authority (book manuscript in preparation). (3) Richard Bird, Taxing Tourism in Developing Countries, World Development (1992). XI Tourism and the Environment: Readings: (1) Mak, Chapter 13 (2) Graham Todd, Background Paper on Climate Change and Tourism, Prepared for the World Tourism Organization, March, 2003. (3) Clem Tisdell, Valuation of Tourism s Natural Resources (2004)
XII Sustainable Tourism Development Readings: (1) Mak, Chapter 14 Guest Lecture: Christopher Edmonds (EWC), Tourism and Poverty Alleviation. Read Walter Jamieson, Harold Goodwin, and Christopher Edmonds, Contribution of Tourism to Poverty Alleviation (November, 2004). XIII Tourism in the Post 9-11 World Readings: (1) Mak, Chapter 15 XIV Tourism in Hawaii Readings: (2) Bureau of Economic Analysis, BEA Reports Sales of U.S. Tourism Industries Grew 3.5 percent in 2003, BEA News at www.bea.gov dated March 15, 2004. (2) Newsweek International, The Future of Travel (July 22/July29, 2002). (1) State of Hawaii Department of Business, Economic Development (DBEDT), Sustainable Tourism Project: Economic and Environmental Modelling report. (2) ---, Summary Report for the Social/Cultural Study.