The effect of institutional innovations on tourism spending in developed countries

Abstract

The new institutional economy deals with the study of innovations that can be reflected in various national sectors, including tourism. The objective of the presented study was to evaluate the significance of the effects of institutional innovations on tourism spending. The analyses included data from databases of the World Travel & Tourism Council (business tourism spending (BTS), leisure tourism spending (LTS), domestic tourism spending (DTS) and visitor exports (foreign spending) (VEFS)) and the Global Innovation Index reports published by Cornell University, INSEAD and WIPO (political environment, regulatory environment, business environment) from 2010 to 2019 for 36 OECD countries (excluding Colombia). Panel regression models (pooling, fixed, random) adjusted by robust estimation were used for analytical processing. The findings indicate that LTS was the category with the highest spending and BTS was the category with the lowest spending. One of the most important findings is that institutional innovations in the business environment have the greatest effect on tourism spending. It can be concluded that with an increase in innovations in the business environment, an increase in BTS, LTS and VEFS can be expected. In the political and regulatory environments, it is not possible to talk about demonstrable effects in general.

A Longitudinal Study of Destination Image, Tourist Satisfaction, and Revisit Intention

“…Furthermore, the majority of the existing literature on destination image study, tourist satisfaction, and behavioural intention focus primarily on well-established destinations (Chi & Qu, 2008). A relatively less researched area in the tourism literature is how international tourists perceive the image of the emerging destination (Stylidis et al, 2017;Rigelsky et al, 2021). Mongolia has an important geographical location in East Asia with a vast 1.566 million sq km area with 3.2 million inhabitants.…”

Smart destination competitiveness: underscoring its impact on economic growth

“…The choice of a regulatory framework and policy approach is based on governmental knowledge and the political environment (Rigelsk y et al, 2021). Political (in)stability (Nadeem et al, 2020) and corruption have been found to affect innovation (Xie et al, 2019).…”

How business environment shapes urban tourism industry development? Configuration effects based on NCA and fsQCA

“…Currently, a small amount of literature has paid attention to the research on the relationship between the business environment and the tourism industry. Rigelský et al ( 2021 ) conducted panel regression processing using the data of 36 OECD countries in the world tourism and Tourism Council database. The research found that institutional innovation had the greatest impact on Tourism expenditure.…”

“…Currently, a small amount of literature has paid attention to the research on the relationship between business environment and tourism industry. Rigelský et al ( 2021 ) empirically found that institutional innovation has the greatest impact on tourism expenditure by using the data of 36 OECD countries in the WTTC database. Gani and Clemes ( 2021 ) analyzed the tourism data of 24 countries within the framework of the gravity model and concluded that an open trade environment and a good business environment could attract more international business tourists and obtain additional benefits.…”