Digital Platforms and the Demand for International Tourism Services

Tourism is an important source of foreign exchange and employment across developing economies. A scant literature has explored the relationship between tourism and the advent of the internet. This paper contributes to the tourism-trade literature a...

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Main Author:	Lopez-Cordova, Ernesto
Format:	Working Paper
Language:	English
Published:	World Bank, Washington, DC 2020
Subjects:	TOURISM DIGITAL TECHNOLOGY SERVICES TRADE TECHNOLOGY ADOPTION
Online Access:	http://documents.worldbank.org/curated/en/724941581621885483/Digital-Platforms-and-the-Demand-for-International-Tourism-Services http://hdl.handle.net/10986/33352

id	okr-10986-33352
recordtype	oai_dc
spelling	okr-10986-333522022-09-20T00:12:55Z Digital Platforms and the Demand for International Tourism Services Lopez-Cordova, Ernesto TOURISM DIGITAL TECHNOLOGY SERVICES TRADE TECHNOLOGY ADOPTION Tourism is an important source of foreign exchange and employment across developing economies. A scant literature has explored the relationship between tourism and the advent of the internet. This paper contributes to the tourism-trade literature and studies the empirical relationship between international tourism and the adoption of digital technologies that facilitate search about tourism opportunities across countries. It links foreign visits with the spread of the use of the internet in sending countries and the level of development of business-to-consumer digital tools in host countries. The paper estimates a well-specified gravity model of tourist arrivals between country pairs with panel data. The results indicate that frictions affecting bilateral tourism flows have been attenuated by the advent of digital tools. The absolute value of the effects of bilateral geographic distance, language differences, and border-contiguity seem to be reduced by the use of the internet by potential tourists and the business sector in host countries. The results are robust to alternative proxies for internet use for tourism search proxied by data from Google trends. The paper also presents simulations of the potential impacts of advances in the adoption of digital tools over time, linking the adoption process to mechanisms of technology adoption that are commonplace in the literature. 2020-02-20T15:48:50Z 2020-02-20T15:48:50Z 2020-02 Working Paper http://documents.worldbank.org/curated/en/724941581621885483/Digital-Platforms-and-the-Demand-for-International-Tourism-Services http://hdl.handle.net/10986/33352 English Policy Research Working Paper;No. 9147 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TOURISM DIGITAL TECHNOLOGY SERVICES TRADE TECHNOLOGY ADOPTION
spellingShingle	TOURISM DIGITAL TECHNOLOGY SERVICES TRADE TECHNOLOGY ADOPTION Lopez-Cordova, Ernesto Digital Platforms and the Demand for International Tourism Services
relation	Policy Research Working Paper;No. 9147
description	Tourism is an important source of foreign exchange and employment across developing economies. A scant literature has explored the relationship between tourism and the advent of the internet. This paper contributes to the tourism-trade literature and studies the empirical relationship between international tourism and the adoption of digital technologies that facilitate search about tourism opportunities across countries. It links foreign visits with the spread of the use of the internet in sending countries and the level of development of business-to-consumer digital tools in host countries. The paper estimates a well-specified gravity model of tourist arrivals between country pairs with panel data. The results indicate that frictions affecting bilateral tourism flows have been attenuated by the advent of digital tools. The absolute value of the effects of bilateral geographic distance, language differences, and border-contiguity seem to be reduced by the use of the internet by potential tourists and the business sector in host countries. The results are robust to alternative proxies for internet use for tourism search proxied by data from Google trends. The paper also presents simulations of the potential impacts of advances in the adoption of digital tools over time, linking the adoption process to mechanisms of technology adoption that are commonplace in the literature.
format	Working Paper
author	Lopez-Cordova, Ernesto
author_facet	Lopez-Cordova, Ernesto
author_sort	Lopez-Cordova, Ernesto
title	Digital Platforms and the Demand for International Tourism Services
title_short	Digital Platforms and the Demand for International Tourism Services
title_full	Digital Platforms and the Demand for International Tourism Services
title_fullStr	Digital Platforms and the Demand for International Tourism Services
title_full_unstemmed	Digital Platforms and the Demand for International Tourism Services
title_sort	digital platforms and the demand for international tourism services
publisher	World Bank, Washington, DC
publishDate	2020
url	http://documents.worldbank.org/curated/en/724941581621885483/Digital-Platforms-and-the-Demand-for-International-Tourism-Services http://hdl.handle.net/10986/33352
_version_	1764478545971642368

Digital Platforms and the Demand for International Tourism Services

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