The effect of natural disasters on tourism demand, supply and labour markets: Evidence from La Palma volcano eruption

Leoni, Veronica ; Boto-García, David (2022) The effect of natural disasters on tourism demand, supply and labour markets: Evidence from La Palma volcano eruption. Bologna: Dipartimento di Scienze economiche, p. 34. DOI 10.6092/unibo/amsacta/7077. In: Quaderni - Working Paper DSE (1177). ISSN 2282-6483.
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Abstract

This paper studies the short-term impact of a volcano eruption on tourism demand, supply, and hospitality labour in La Palma (Spain), an island economy that is highly dependent on the tourism sector. Based on a monthly panel dataset at the touristic zone level, we use Seemingly-Unrelated Difference-in-Differences (SUR-DiD) to identify the distinct responses of these three outcomes during and post eruption. Potential spillover effects on nearby islands are also examined. We find that, in La Palma Island, the volcano produced significant but asymmetrical drops in international demand, number of hotels and hospitality workers both during and after the eruption.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Leoni, VeronicaCenter for Advanced Studies in Tourism, University of Bologna0000-0001-8419-4241
Boto-García, DavidDepartment of Economics, University of Oviedo0000-0001-8065-0983
Keywords
Natural disasters, tourism-led economy, resilience, recovery from disaster
Subjects
ISSN
2282-6483
DOI
Deposit date
07 Nov 2022 15:48
Last modified
10 Nov 2022 09:05
URI

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