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Original scientific paper

https://doi.org/10.37741/t.72.2.2

Lessons From the Impact of Global and Domestic Economic Crises on Tourists’ Behaviour: The Case of Algarve

Ana Paula Barreira orcid id orcid.org/0000-0001-5816-3361 ; Center for Advanced Studies in Management and Economics (CEFAGE); Faculdade de Economia, Universidade do Algarve, Faro, Portugal *
Marisa Cesário ; Research Center for Tourism, Sustainability and Well-Being (CinTurs); Faculdade de Economia, Universidade do Algarve, Faro, Portugal

* Corresponding author.


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Abstract

Economic crises have been demonstrated to have profound consequences on the tourism industry. Insights from previous global economic and financial crises can provide valuable perspectives on the economic crisis accompanying the war in Eastern Europe. Through a survey conducted during the off-peak seasons of 2008, 2009/2010, and 2010/2011, we compared satisfaction with the attributes of the Algarve—a region globally recognized by the 3S’s— before global and domestic crises and after the global crisis. Our findings reveal that the international and domestic crises have not affected the image of the Algarve. However, this observation conceals shifts in how tourists perceive the destination's attributes. The valuation of accommodations and beaches declined between the pre and post-global crises. At the same time, the friendliness of locals and safety were more negatively impacted when comparing tourists’ assessments before the domestic crisis and after the global crisis. Results indicate that price reduction strategies adversely affect tourists’ assessments of the "value for money." This impact is more pronounced for tourists with higher education levels, who employ fewer "slicing" strategies. Furthermore, non-sovereign debt tourists appear to be more dissatisfied with a price reduction policy, possibly due to changes in the composition and quality of the offered packages.

Keywords

economic crisis; tourist’s satisfaction; tourism destination attributes; Algarve-Portugal

Hrčak ID:

315641

URI

https://hrcak.srce.hr/315641

Publication date:

12.4.2024.

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