This paper assesses how tourism affects absolute poverty beyond its effects on growth in two developing countries. In particular, the author explores whether tourism spending leads to a decline in the proportion of people below the poverty line. An error correction model is applied to estimate the relationship between poverty and tourism spending. The results reveal that tourism does matter for the poor, but that it does not appear to have systematic effects, and that tourism development matters most for the poor at the lower levels of economic development. The findings from the two developing country case studies show differing impacts of tourism development, and thus the policy implications differ for each case.

The purpose of this study is to assess tourism development in the context of Sen’s capability approach. The study developed a model to investigate the relationship between tourism development and human development while focusing on two countries, Nicaragua and Costa Rica. The study applied a cointegration technique based on the Granger representation theorem. Overall, tourism development and human development reveals a tenuous relationship in both cases, reflecting some threshold effect. The importance of tourism growth is merited in the distribution of its benefits and the extent that tourism receipts are allocated to support human development (public health, education, safety, etc.). Rising incomes will not necessarily translate into human development performance, thereby rendering support to Sen’s contention that well-being should not be measured by its instrumental antecedents (such as income) alone. Private incomes through tourism expansion seem to matter most at lower levels of human development.

The study examines the distributional effects of tourism expansion applying a social accounting matrix model to the case of Ecuador. Specifically the study examines what share of tourism expansion benefits poor people. The study finds that tourism has large multiplier effects on the Ecuadorian economy and has the potential for substantial benefits to the poor. The study also found that distributional effects of tourism development are spread across all household incomes in both urban and rural areas benefiting the lowest and low households the most. Tourism has the potential of reducing inequality and is pro-poor in the case of Ecuador. Benefits to the poor seem to hinge on how and where tourists spend their money.

This study explored the meaning of authenticity in the context of a small island destination from the residents' perspective, departing from the main stream literature which predominantly focuses on the demand side of the equation. Photo-elicitation was used to investigate the conception of authenticity. The finding from the focus group is that the notions of authenticity are unique, vast, and individualistic and that an encompassing definition of authenticity is difficult to concur. While the focus group provided clarity in terms of authenticity being embedded in the cultural lifestyle, an empirical study was conducted to further understand what cultural resources could be derived from the specific meaning of authenticity. Two themes emerged: (1) when residents interact with tourists, cultural attributes are more important than tradition; and (2) tourists are involved in creating an authentic process for residents. The younger generation appears to be frustrated with the impact of tourism on the cultural identity of the island. In conclusion, the concept and practice of authenticity are not static, but rather evolving practices that embrace new cultural forms. Cultural tourism could become a potent vehicle enhancing the quality of life of residents and the essence of the distinctiveness of Aruba contributing to a sense of place, pride, and culture.

Purpose: This paper aims to examine and identify important attributes for mobile applications (apps) that might dictate tourist preferences for the apps on a small island destination. Guided by the Task Technology Fit (TTF) theory, the study considers the tasks performed, technology characteristics and individuals’ characteristics in determining the mobile apps attribute set. Design/methodology/approach: This study uses a conjoint methodology within a case study approach framework. The conjoint analysis allows for assessing preferences from different consumers regarding the objective characteristics of products or services that facilitate the optimal design of product development. Optimal product development is a challenge for destinations, as they strive to achieve and sustain optimal market positions. Mobile apps may empower destinations in this endeavor. The case study approach imparts a context-dependent knowledge that facilitates a more nuanced understanding of consumer preference of use. Findings: The results of the conjoint analysis suggest a strategic mapping of the most important attributes including type of content information, coupons and location awareness in defining apps product development. Within each attribute, the study also identifies the significant characteristics of a mobile application that are preferred by tourists. This ranking exists irrespective of familiarity with the destination (first-time and repeat visitors). Research limitations/implications: The implication is that revealed preferences anchored in conjoint analysis provide a powerful approach to optimize product development in a small island destination. From a practical perspective, the findings suggest that the developments of a mobile app for a destination must concentrate on fostering spending and consider the app as a new marketing channel. From a theoretical point of view, the current study highlights the usefulness of using the conjoint analysis and the TTF theory as an overarching framework in mapping a multi-attribute decision-making space that influences tourist judgment and preference of use. The conjoint method applied in the study enables researchers to clearly identify a combination of various mobile app attributes that are most influential on tourists’ choice and preference of use. The guiding framework, TTF theory, allows the conjoint product designs to go beyond the technology characteristics to include tasks performed by tourists and their individual characteristics. Originality/value: This study is the first to apply a conjoint analysis within the TTF theoretical framework in the context of a small island destination when assessing tourists’ use preferences toward mobile applications, while at the same time investigating whether any differences exist between first-time and repeat visitors. The study demonstrates that complementing the nature of the task (traveling) with context-specific interface and interactive features is an important area of inquiry that can benefit from adopting conjoint analysis.

This case study provides an empirical assessment of the relationship between discounting hotel room rates and hotel financial performance. The dynamics of the lodging industry are accounted for through the adoption of an error correction model. Recent research suggests that the use of discounting room rates may not be an effective pricing strategy as it results in increased occupancy rates at decreased average daily rates, thereby reducing a common financial performance indicator – revenue per available room (revPAR). The recommendation made to hotel managers, then, is to avoid discounting and instead adopt an average rate. This study generates opposing findings and reveals that discounting may be a practical short-term pricing solution that may compensate for market disequilibria. The results suggest that using statistical residuals rather than room rate averages may more accurately forecast appropriate hotel room rates and balance supply and demand. Thus, the recommendation of adopting average room rates may provide incorrect implications for managers in the short run.