Discussion Paper

No. 2012-5 | January 16, 2012
Cruise Tourism Externalities and Residents’ Support: A Generalized Ordered Logit Analysis
(Published in Special Issue Tourism Externalities)

Abstract

This paper investigates residents’ preferences towards cruise tourism investment in their home port. The research uses data collected during the peak cruise season in 2011 at Messina, a port of call in Sicily, Italy. A generalized ordered logit analysis is run to analyse what factors influence the residents’ preferences towards investment in cruise tourism. Positive and negative externalities produced by this economic activity, as well as socio-demographic and economic determinants are taken into account. Overall, the resource investment choice of residents in Messina was dependent upon: their income dependency on the cruise activity, their own personal cruise experience, family size, the expected increase in welfare (i.e. increase in public and private investment), whether they are affected by urban and rural gentrification and the value placed on community life style and heritage conservation. Nevertheless, residents would tend to decrease investments in cruise activity if they are female, retired or perceive the environment to be deteriorating. Implications for policy makers are drawn from the empirical findings.

Paper submitted to the special issue
Tourism Externalities
 

JEL Classification

D62 L83 C25

Cite As

Juan Gabriel Brida, Giacomo Del Chiappa, Marta Meleddu, and Manuela Pulina (2012). Cruise Tourism Externalities and Residents’ Support: A Generalized Ordered Logit Analysis. Economics Discussion Papers, No 2012-5, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2012-5

Assessment



Comments and Questions


Sunil Sapra - Suggested corrections to Section 3.2 of the paper.
January 23, 2012 - 20:43

The paper uses a generalized ordered logit model for econometric analysis. However, the discussion in section 3.2 (Econometric Specification) makes it appear that the authors are using an ordered probit model. On page 6, the authors state that "the assumption is that the residual epsilon is normally distributed and hence ...[more]

... the mean and variance of the residual is normalized to zero and one..." The formulas for the five probabilities in equation (3) on the following page are incorrect since the probability density function (pdf) for a N(0,1) random variable is used; the correct function to use here would have been the cumulative distribution function (cdf, not pdf) of a N(0,1) random variable if an ordered probit model had been used. The correct formulas would replace the pdf's of N(0,1) with the logistic cdf given that the authors are actually using generalized ordered logit model, not ordered probit model.


Manuela Pulina - Reply to Sunil Sapra's Comments
August 08, 2012 - 10:54

see attached file


Anonymous - positive evaluation
February 09, 2012 - 11:01

The paper analyzes an important topic for tourism economics: the cruise tourism. In recent years the cruise sector has been characterized by a strong development. After a brief review of the literature and after presenting some theoretical hints on the effects of cruise tourism on tourism destinations, the research focuses ...[more]

... on an applied analysis based on questionnaires. The questionnaires are collected through direct interviews with Messina citizens. From an empirical point of view, the analysis is complete and the exposition is very clear. The conclusions are obvious, but not trivial ones. My evalutation is therefore positive.
Finally, I have two minor observations:
1- the Likert scale is calibrated on levels 0-4, as it would appear from equations (2), or on levels 1-5?
2- a brief description of Messina Port as a cruise port would be appropriate (maritime links, types of ships, ship owners, companies types, etc.).


Manuela Pulina - Reply to Reader Comment
August 08, 2012 - 10:51

see attached file


Anonymous - Referee Report 1
February 22, 2012 - 08:44

see attached file


Manuela Pulina - Reply to Referee Report 1
August 08, 2012 - 11:28

see attached file


Anonymous - Referee Report 2
March 12, 2012 - 08:42

see attached file


Manuela Pulina - Reply to Referee Report 2
August 08, 2012 - 11:51

see attached file


Manuela Pulina - Report and Reply
August 08, 2012 - 11:48

see attached file