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Publications

Below is the full list of publications of Dr Andreas Papatheodorou: Publications in Refereed Journals, Presentations at International Conferences and Workshops, Academic Books, Book Chapters, and Dissertations.

For each publication, you may read the abstract by clicking the appropriate link. Downloadable copies, in PDF format, are available only for conference presentations due to copyright restrictions. Should you wish to obtain a copy of any publication, please contact academia@trioptron.org.

Publications in Refereed Journals

• Papatheodorou, A. and Platis, N. (2007) Airline Deregulation, Competitive Environment and Safety. Rivista di Politica Economica, I-II 2007: 221-242. Abstract

  Air traffic has substantially increased since the introduction of deregulation in both the USA and the European Union. Moreover, aircraft accidents involving fatalities have exhibited a downward trend over time. Still, a series of recently publicized accidents has raised again a serious issue, namely whether cost reduction in a deregulated aviation environment is achieved at the expense of safety standards. To address this question, the paper proposes a mathematical model, which highlights the relationship between competitive behaviour and tort liability. The model has important policy implications suggesting that the level of airline penalisation should be reduced when market rivalry is relaxed and conversely.

• Papatheodorou, A. and Lei, Z. (2006) Leisure travel in Europe and airline business models: A study of regional airports in Great Britain. Journal of Air Transport Management, 12(1): 47-52. Abstract

  Tourism and air transport are explicitly linked especially in the context of leisure traffic. This paper aims at highlighting this relation by focusing on the impact of the three main airline business models (traditional scheduled, charter and low cost) on regional airports using Britain as a case study. The panel data econometric results show that despite the current perception, low cost carriers are not the only ones to contribute significantly to airport aeronautical and non-aeronautical revenue. This observation has important policy implications and calls for transparency in airport subsidies as argued in the conclusion.

• Papatheodorou, A. and Song, H. (2005) International Tourism Forecasts: A Time Series Analysis of World and Regional Data. Tourism Economics, 11(1): 11-24. Abstract Citations

  Forecasting is an essential analytical tool in tourism policy and planning. This paper focuses on international tourism arrivals and receipts at nominal, real and per capita levels. It uses modern time series techniques based on the period 1960-2000 to produce forecasts for 2001-2010 in the six major World Tourism Organization regions and the world collectively. The initial diagrammatic analysis of existing data suggests that despite conventional wisdom, evolution in the mass tourism era has not been rosy. Performance differs dramatically among the regions, fluctuations are sharp and negative tourism growth is not unusual in real and per capita terms. Similarly, the subsequent forecasts have negative signs occasionally. Policymakers should, therefore, take action to increase revenue generation but not at the expense of sustainable tourism development.

• Papatheodorou, A. (2004) Exploring the Evolution of Tourist Resorts. Annals of Tourism Research, 31(1): 219-237 (also appearing in 6(1):42-64 of the Spanish edition of this journal) Abstract Citations

  This paper examines evolutionary patterns in tourism from an economic geography perspective. It proposes a new theoretical model where endogenous changes to the tourism circuit lead to a dualism in market and spatial structures: powerful conglomerates share the markets with a competitive fringe and core resorts share tourism spaces with peripheral destinations. The model illustrates graphically the interaction of market and spatial forces and studies implications for resort development. The short run analysis examines the relationship among origin regions, core and peripheral resorts; smooth and abrupt long term patterns are subsequently explored. The paper also gives directions to operationalize the model and suggests themes for future research.

• Papatheodorou, A. (2003a) Exploring the Determination of Student Performance in University Modules and Streams. Applied Economics, 35(17): 1859-1864. Abstract

  This paper assesses the role of various characteristics in explaining marks achieved by university students in specific modules and streams. Building on a hedonic analytical framework, this performance-related study aims at being useful for lecturers in their design of learning and teaching policy. Following the presentation of variables and some descriptive statistics, the econometric exercise indicates that the statistically significant factors are those primarily related to semester student performance, i.e. an overall good (mediocre) student performs well (bad) in the modules under consideration. Despite its superficial triviality, this result might have important implications for university administrators and their budgeting strategy.

• Papatheodorou, A. (2003b) Corporate Strategies of British Tour Operators in the Mediterranean Region: An Economic Geography Approach. Tourism Geographies, 5(3): 280-304. Abstract Citations

  This paper studies the market and spatial corporate strategies of the British mass tour operations sector in the context of the Mediterranean Region. A number of methodological issues are discussed and various indexes of market and territorial concentration are derived. These are subsequently computed in the empirical section, where a correlation analysis is also performed at different scales of spatial aggregation. The analysis aims at being useful for destination planners and regional developers who seek a tool of linking tour operations with tourism urbanisation. Moreover, the paper may contribute to the development of more general competition and marketing studies in tourism, which aim at evaluating the implications of corporate power and interdependence.

• Papatheodorou, A. (2003c) Modelling Tourism Development - A Synthetic Approach. Tourism Economics, 9(4): 407-430. Abstract Citations

  This paper aims at producing an innovative model of tourism development by creatively amalgamating the framework of agglomeration economics with discrete choice and oligopolistic competition. Consumer choice is examined simultaneously from a dual perspective (discretely at the inter-resort level and continuously in the context of intra-resort consumption) to encapsulate systemic and probabilistic factors. In conjunction with the treatment of dynamic issues, the paper then performs a welfare analysis by comparing the spatio-temporal configuration under a social planner with the one of a decentralised regime. Policy considerations and directions for future research and operationalisation are finally drawn.

• Papatheodorou, A. (2003d) Do we Need Airport Regulation? Utilities Journal, 6(10): 35-37. Abstract Citations

  Airport regulation has attracted particular interest in Britain since the BAA privatisation. The airports form a major part of the utilities sector and the regulation of their activities is deemed necessary by policymakers: otherwise, airports could abuse their natural monopoly power at a local level to the detriment of the consumer interests. Nonetheless, the standard rationale behind regulation might not be directly applicable in the present context. Regulation should be introduced when other policies fail to be effective; but is this true regarding airports? This article aims at highlighting some important issues in the area.

• Papatheodorou, A. (2002a) Civil Aviation Regimes and Leisure Tourism in Europe. Journal of Air Transport Management, 8(6): 381-388. Abstract Citations

  The paper discusses the implications of modern civil aviation regimes for tourism in Europe. A discussion of the relation between air transport and tourism sets the foundation for the study focus. The market strategies of the players involved are examined within a multidimensional framework of corporate rivalry during regulation and liberalisation. The connotations for tourism origins, destinations and consumers are presented and policy measures are suggested for the alleviation of emerging problems.

• Papatheodorou, A. (2002b) Exploring Competitiveness in Mediterranean Resorts. Tourism Economics, 8(2): 133-150. Abstract Citations

  This paper examines competitiveness and efficiency issues related to destinations in the Mediterranean Region. Following a detailed discussion on methodology, a hedonic analysis is performed, where the price of holiday packages is regressed on a number of package characteristics, operator and location scaling factors. Those, which are statistically significant among the latter, are subsequently used into a second-step correlation framework, which aims at offering a valid interpretation of the observed price differentials among core and peripheral holiday destinations. On these grounds, a number of policy measures are finally discussed.

• Papatheodorou, A. (2001a) Tourism, Transport Geography and Industrial Economics: A Synthesis in the Context of Mediterranean Islands. Anatolia, 12(1): 23-34. Abstract

  Connectivity is a crucial issue for tourism development, especially in Mediterranean island destinations, whose accessibility from the mainland tourist origins depends entirely on sea and air passenger transport services. These operations are subject to significant market oligopolisation, therefore the study of the prevailing industrial configuration is essential. In this context, the paper argues that irrespectively of the initial conditions of location, market power in transport may affect significantly the territorial pattern of tourism flows in Mediterranean island destinations. More specifically, the spatial implications of the previous air and sea passenger transport regulatory regime in the European Union are compared with those of the present liberal framework to conclude that neither of these systems provides the ideal connectivity conditions in the Mediterranean as issues of core and peripherality are insufficiently addressed. From this perspective, the policymakers are recommended to enrich the current deregulatory framework with a set of active tourism strategies based on solid foundations of industrial economics and island transport geography.

• Papatheodorou, A. (2001b) Why People Travel to Different Places? Annals of Tourism Research, 28(1): 164-179. Abstract Citations

  This study aims at providing an economic explanation for the observed variety in the actual consumer choice of tourist destinations. Despite its contribution to tourism research, the traditional demand theory is insufficient to justify comprehensively the direction of tourist flows in space and time, mainly because it cannot account for the importance of product differentiation and corporate power. To address these issues, the Gorman/Lancaster characteristics framework is applied to tourism and a comparative exercise is undertaken in six different fields. The theoretical conclusions are appealing as they match demand and supply, offering a holistic answer to the question of tourist choice and a useful benchmark for further research in the area.

• Papatheodorou, A. (1999) The Demand for International Tourism in the Mediterranean Region. Applied Economics, 31(5): 619-630. Abstract Citations

  This paper studies the demand for international tourism in the Mediterranean Region. The Introduction is mainly devoted to a review of the most important attempts to model econometrically the demand for international tourism in the past. In Section II, the formal presentation of the theoretical model is given. In particular, a version of the Almost Ideal Demand System (AIDS) is adopted. Description of the variables involved and their sources, together with the estimation procedure, are analysed in Section III. The performed diagrammatic analysis contributes to a better understanding of the evolution of the dependent variable over time. Section IV presents and critically evaluates the empirical findings. In particular, the results with respect to the expenditure as well as to the own- and cross- price elasticities may be regarded as econometrically satisfactory and a reasonable economic explanation may be given. The paper concludes by providing a summary of the main findings and discussing possible extensions for future work in the field.

Presentations at International Conferences and Workshops

• Papatheodorou, A. (2007) The Institutional Framework of Tourism Education and Training in Selected EU Countries: Analysis, Evaluation and Forthcoming Trends (in Greek). Forum on Tourism Education and Training organised by the Ministry of Tourism Development, Greece. Dr Papatheodorou was invited to participate in this conference as one of the keynote speakers. PDF
• Papatheodorou, A. and Iatrou, K. (2007) Leisure Travel: Implications for Airline Alliances. 2007 World Conference of the Air Transport Research Society organised by University of California – Berkeley. This is a refereed paper published in the conference proceedings. Abstract PDF

  The rationale behind the formation of airline alliances includes the reaping of scale and scope economies and the acquisition of marketing and branding advantages. To really add value to the airline customer, however, alliances should consider the purpose of travel, i.e. they should appreciate and understand the derived nature of the airline product. The relevant literature seems to understate this issue or at best focus on business passengers. Given the rising importance of leisure travel and tourism in the world economy, its implications should be explicitly assessed. The emergence of low cost carriers and the subsequent simplifications in the holiday packages offered by charter airlines have played a major role in boosting leisure travel in Europe at least. Still, the intelligent management of frequent flyer programmes and the creation of a seamless network in long haul (or even intercontinental) air travel may induce leisure passengers to opt for an allied airline instead. This paper addresses the topic by undertaking primary research in the form of semi-structured interviews with airline executives and structured questionnaires addressed to passengers. The interviewees are supportive of the view that alliances of network carriers may offer benefits to leisure passengers although they do recognise the competitive threat posed by low cost carriers. Similarly, the statistical analysis of the questionnaire results reveals that frequent flyers and more affluent respondents are more knowledgeable about strategic alliances and have a tendency to prefer allied carriers for long-haul but not for short-haul flights. This outcome may add to the understanding of airline alliances and consumer behaviour and have important implications for airline strategy at a global level.

• Papatheodorou, A. and Karpathiotaki, T. (2007) Film induced tourism, development and policymaking: the case of Crete. First Conference of the International Association for Tourism Economics organised by the University of the Balearic Islands in Palma de Mallorca, Spain. This is a refereed paper published in the conference proceedings. Abstract PDF

  Film and television activity is expanding rapidly at a global level. Media-related tourism involves visits to places celebrated for associations with books, authors, television programmes and films. In recent years, there has been an increasing research interest in film-induced tourism: this focuses on how films may shape destination images and resulting tourist expectations, behaviour and numbers. In fact, film induced tourism may have serious economic, social and environmental implications and raise significant policy issues. To validate this argument, our empirical research focuses on the area of Heraklion in Crete (Greece), where the movie EL GRECO was filmed. This is a biographical film-documentary of the famous Cretan painter and shows different aspects of the Cretan landscape in the past. The fieldwork involves structured and semi-structured questions addressed to travel agencies in Crete regarding emerging business benefits and changing consumer perceptions as a consequence of the film. The results of the questionnaires are statistically analysed and common patterns are identified among the respondents. From a policy perspective, the outcome of the research may assist in understanding the possible implications of the film for the current and future stages in the life cycle of the Cretan tourism product.

• Arvanitis, P. and Papatheodorou, A. (2007) Changes in air transport supply as a result of destination development: The case of Santorini Island, Greece. First Conference of the International Association for Tourism Economics organised by the University of the Balearic Islands in Palma de Mallorca, Spain . This is a refereed paper published in the conference proceedings. Abstract PDF

  Air transport has traditionally been the link between tourism generating and destination regions in Europe. Intra-European leisure tourism is highly dependent on air transport services especially between North-South. Incoming leisure tourists in South Europe are using mostly air services to reach their holiday destinations. The charter airline industry has historically been far more liberal than the scheduled sector moving from a highly regulated protectionism in early 1980s, to gradual relaxation in mid 1980s, to full Third Package implementation in 1998, to low cost carriers’ evolution today. This paper examines and analyses the supply of air transport services in Greece focusing in particular on regional airports and their serving destinations. The size and origin of the incoming leisure market will be discussed, measuring the correlation of the frequency of services to the country of origin. Furthermore the aircraft size and the size of the originating market are examined whether they are correlated. The changing patterns of air services provision to holidaymakers are discussed, taking into consideration the legislative and the market developments. The paper concludes by stating whether low cost carriers have affected the remote leisure destinations or charter carriers are still the dominant players in that market.

• Boulasidou, K., Kostis, C., Ntousa, M. and Papatheodorou, A. (2007) Tourism Development and Policymaking in Greece: The Case of Evia. First Conference of the International Association for Tourism Economics organised by the University of the Balearic Islands in Palma de Mallorca, Spain. This is a refereed paper published in the conference proceedings. Abstract PDF

  Regional development in Greece, including tourism development in certain areas, is still at a low level. Apart from the lack of targeted and consistent tourism policy, quality standards in tourism are applied only in a small number of cases. In this paper, the subject of promoting the competitiveness of the Greek tourism product at the level of a specific prefecture will be discussed. The case of the Prefecture of Evia, the second largest Greek island, has been chosen given that it is characterised by many idiosyncrasies and has not yet been explored as far as tourism development is concerned. The analysis has taken into consideration the current situation of tourism demand and supply in Evia. Therefore, tourism demand will be presented and evaluated first, and then tourism supply will be analysed. SWOT analysis has been used to describe the micro and macro-environment of the Prefecture. For the purposes of this paper a survey was conducted using a questionnaire consisting of 44 questions and this was analysed using statistical tools. The aim of this paper is to use the Integrated Quality Management Framework in order to suggest specific measures of policy (concerning courses of action and possible results) to improve the competitiveness of Evia as a tourism destination.

• Papatheodorou, A. (2006a) Air Transport Liberalisation and Tourism in the Eastern Balkans and the Mediterranean Region. Third Graduate Research in Tourism Conference, organised by the Çanakkale Onsekiz Mart University and Anatolia Journal in Çanakkale, Turkey. Dr Papatheodorou was invited to participate in this conference as a keynote speaker. PDF
• Papatheodorou, A. (2006b) Destination Attractiveness, Winner’s Curse, White Elephants and the Prisoner’s Dilemma: Is there a solution? International Conference on Marketing Destinations and their Venues, organised by IMIC and Heliotopos, Athens, Greece. Dr Papatheodorou was invited to participate in this annually held conference as a keynote speaker. The abstract of the paper is published in the conference proceedings. Abstract PDF

  Tourism plays a prominent role in today’s service economy; it is a major income and job generator and contributes significantly to regional development and modernisation. Policymakers are, therefore, interested in promoting tourism; to avoid, however, the side effects of unsustainable growth, emphasis in developed countries is gradually shifting away from standardised mass tourism: product differentiation and quality improvement are regarded as prerequisites to raise tourism receipts especially on a per capita basis. Among other tourism sectors, the MICE industry looks particularly promising as its profile is consistent with the new trend both from a demand and a supply side perspective. To increase destination attractiveness, public authorities or even private entities may decide to invest heavily on grandiose infrastructure, which becomes a white elephant as costs are never fully recovered. Alternatively, they may decide to outbid competing destinations by offering conference organisers or related intermediaries too preferential terms to benefit; this winner’s curse can be equally detrimental. Collaboration with other destinations is often perceived as a solution to this impasse. But the prisoner’s dilemma and the incentive to cheat make coordination fail particularly when suppliers are fragmented and buyers have strong bargaining power. Is there a strategy to raise destination attractiveness and be profitable at the same time? The answer lies mainly on choosing infrastructure and partners carefully: appropriate size, flexibility and strategic alliances should be used in an integrated manner to reduce substitutability and increase a destination’s negotiation power in the longer term.

• Karageorgos, D. and Papatheodorou, A. (2006) Competition in the Transport for Tourism Sector and the Need for Excellence in Policymaking: the Athens - Chios route as a case study. In search of Excellence for Tomorrow’s Tourism, Travel and Hospitality EUROCHRIE Conference, organised by the University of the Aegean in Thessaloniki, Greece. This is a refereed paper published in the conference proceedings. Abstract PDF

  Economists usually praise competition and corporate rivalry as a mechanism to achieve productive, allocative and possibly dynamic efficiency. Policymakers are, therefore, urged to excel in this field by safeguarding competition especially in cases of market power abuse by dominant incumbents. In particular, a company has a dominant position in a product or geographical market when its relevant market share exceeds 25%; although there is nothing wrong with dominance as such, companies should not be allowed to apply practices that are harmful to free and healthy competition and thus, to the detriment of consumers (NERA, 2001). Such issues have received particular attention in tourism lately, following the globalisation of hotel activities, the air transport deregulation and the gradual liberalisation of other tourism services worldwide (Papatheodorou, 2006).

  This paper studies issues of dominance and abuse of its position in the transport for tourism market. The case study focuses on the route between Athens, the capital of Greece, and Chios, a remote island situated in the northern-eastern part of the Aegean Sea. Chios is connected to Athens by both air and sea. Until recently, the route was serviced by one air and one sea carrier. This regime, however, was finally challenged successfully as Greece opened its domestic transport markets to competition following accession to the European Union (Fragoudaki, 2000). At present, there are four active carriers in the route (two for each transport mode) operating daily services. Still, the newcomers have a short corporate history, while the total number of companies in the market remains limited; thus there is danger of market power abuse.

  The discussion uses industrial organisation analytical tools with emphasis on the Structure-Conduct-Performance paradigm to set the observed market environment in the appropriate theoretical context (Scherer and Ross, 1990). The European and Greek legal frameworks on competition matters are also examined. Subsequently, the paper presents the results of a secondary data analysis based on passenger and aircraft/vessel movements in the ports and airports under investigation. These results are complemented by primary data research. In particular, air and sea passengers travelling between Athens/Piraeus and Chios are asked to complete a structured questionnaire on the characteristics of the two alternative transport modes and the degree of their mutual substitutability in the specific market. Customer satisfaction from service delivery is also explored. Moreover, executives from the four transport companies are interviewed using open-ended questions on dominance issues in the particular route. Upon collection, these data are analysed using standard statistical techniques in social sciences including cross-tabulation (Sekaran, 2003). Should abuse of dominant position prove to be the case, the paper will conclude by recommending appropriate strategies to alleviate the emerging problems and raise consumer welfare. In this context, the proposed measures may be particularly useful to public authorities wishing to set benchmarks for excellence in safeguarding competition in the transport for tourism sector.

• Papatheodorou, A. and Karachristos, L. (2006) Tourism and Air Transport Liberalisation in the Balkans: Bulgaria and Romania as Case Studies. Second International Conference on Tourism Economics, organised by the Department of Applied Economics of the University of the Balearic Islands in Palma de Mallorca, Spain. This is a refereed paper published in the conference proceedings. Abstract PDF

  This paper discusses the evolution of tourism development in the eastern Balkan states of Bulgaria and Romania and its relation to air transport accessibility. Both countries inherited some tourism infrastructure from the socialist times albeit of poor quality and low service standards. The initial euphoria about the transition to the market economy has been replaced with scepticism on how to face the emerging challenges. Still the forthcoming accession of the two countries into the European Union may act as a boosting mechanism to the economy. As part of adopting the Acquis Communautaire both countries should liberalise their air transport market with interesting implications for traditional scheduled, charter and low cost air services. The paper examines such aviation issues using traffic between Greece and these countries as a case study. Following a period of stagnation, traffic has surged over the last few years as Greece has become a major commercial partner of both countries. This trend is likely to continue in the future with leisure tourism possibly extending into new destinations beyond Athens, Sofia and Bucharest.

• Papatheodorou, A. and Liasidou, S. (2006) Aviation Deregulation and Tourism in Cyprus following EU Accession. Cutting Edge Research in Tourism Conference, organised by the University of Surrey in Guildford, United Kingdom. This is a refereed paper published in the conference proceedings. Abstract PDF

  The completion of the air transport liberalisation process in April 1997 transformed the aviation environment in the European Union enabling free market entry and exit, seat capacity determination and fare setting. Currently, the European Common Aviation Area (ECAA) includes the twenty five EU member states, Iceland and Norway. The relevant literature confirms that the post-liberalisation European aviation scene is more competitive with a plethora of airlines entering the market and charging lower fares. New routes emerged and many secondary airports increased their operations. Low cost carriers set the business trends in the late 1990s by offering a cheap, scheduled, point-to-point service to a multitude of destinations. This enhancement of accessibility created new business opportunities but also boosted leisure and VFR tourism. Although this is undoubtedly a positive development, care must be taken to ensure that these increased tourism flows are accommodated in a sustainable manner. Such issues are especially important for islands and small states where carrying capacity limits are usually binding.

  This paper aims at evaluating the possible impacts of airline in the tourism industry using Cyprus as a case study. The island-state joined the EU in 2004 and is highly dependent on the tourism industry. Airline competition and lower fares may attract an even larger number of low-income travellers with potentially detrimental effects: the Cypriot environment is fragile facing hard and soft constraints such as energy (air conditioning and infrastructure), water supply (desalination), available land for further urbanisation, congestion, seasonality and clustering of tourism activities. Some of these concerns were raised by a number of Cypriot transport and tourism executives interviewed by Liasidou in summer 2003, i.e. one year before Cyprus joined the EU. This paper replicates the exercise one year after accession to analyse the changes occurred in the Cypriot airline industry, to compare and contrast the results from the respondents and to propose useful policy guidelines for the future.

• Papatheodorou, A. and Zenelis, P. (2006) Implications of Air Transport Liberalisation in South-eastern Europe. Closing conference of the HERMES project funded by the European Union. This paper is included in the conference proceedings (to be published shortly). Abstract PDF

  The European Union (EU) followed a step-wise approach in liberalising its aviation market. With the implementation of the Third Package in April 1997, the European Common Aviation Area (ECAA) was established among the fifteen EU member states, Norway and Iceland. As a result, of this Single European aviation market, the intensification of competition questioned the traditional business models and led to the emergence of the low cost carriers. These empowered the regions of Europe with positive implications for direct, indirect and induced effects for income, employment and accessibility. In other cases, however, flights to peripheral destinations can only be sustained through the Public Service Obligations (PSO) mechanism; hence problems of labour mobility and potential social exclusion remain unresolved.

  The accession of ten new countries into the EU introduces new challenges regarding the implementation of the Acquis Communautaire in aviation.  Bulgaria and Romania are also expected to join the EU and the ECAA within the next two years while Turkey has also paved the path for future accession. Most of the newcomers experienced a difficult transitional period from a centrally-planned to a free market economy; in other cases, small country and market size deny the seizure of economies of scale, which are necessary to survive in a liberalised market.

  This paper compares and contrasts the experience and implications of European air transport liberalisation among the following four countries: Greece (a EU-15 member with extensive use of PSO services), Cyprus (which joined the EU in 2004 as a small island state, where large tourism flows may raise concerns over environmental sustainability), Bulgaria (an ex-communist country with heavily concentrated tourism infrastructure in few Black Sea resorts) and Turkey (a vast and promising market at all levels in need of further economic and political restructuring). The paper explores existing and potential areas of conflict and investigates opportunities to reap the benefits of air transport liberalisation for the sake of improved cross-country relations and mobility in South-eastern Europe. In this context, it concludes by suggesting synergistic policies at an inter-regional level.

• Papatheodorou, A. and Lei, Z. (2005a) Low Cost Carriers, Accessibility and Tourism Development. International Conference on Tourism Planning and Development, organised by the Technological Educational Institute of Patras in Patras, Greece. Dr Papatheodorou was invited to participate in this conference as a keynote speaker. Abstract PDF

  Tourism and air transport are explicitly linked especially in the context of leisure traffic. This presentation aims at highlighting this relation by focusing on the impact of the three main airline business models (traditional scheduled, charter and low cost) on regional airports using Britain as a case study. The panel data econometric results show that despite the current perception, low cost carriers are not the only ones to contribute significantly to airport aeronautical and non-aeronautical revenue. This observation has important policy implications and calls for transparency in airport subsidies as argued in the conclusion.

• Papatheodorou, A. and Lei, Z. (2005b) Leisure Travel: Preferences, Locations and Airline Business Models. Leisure Traffic and Tourism: New Strategies for Airlines, Airports and the Travel Trade, 8th Hamburg Aviation Conference, organised by Hamburg Airport in Hamburg, Germany. Dr Papatheodorou was invited to participate in this conference as a keynote speaker. Abstract PDF

  Tourism and air transport are explicitly interrelated especially in the context of leisure traffic. This paper aims at highlighting this relation by focusing on issues of tourism preferences, leisure locations and their impact on airline business models. Section one discusses the main leisure markets by providing a basic market segmentation and commenting on the observed trends in international tourism flows. Section two presents the main airline business models (traditional scheduled, charter and low cost) drawing examples from the European experience, while section three shows the results of an empirical study on the love-and-hate relationship between low cost carriers and regional airports. The paper concludes by answering questions set by the conference panel.

• Papatheodorou, A. and Polychroniades, K. (2005a) Air Transport Liberalisation, Cost Reduction and Safety: Is there a Dangerous Trade-off? Workshop on EU Liberalization of Air Transport - Experience and the next steps forward organised by the German Aviation Research Society in Cologne, Germany. GARS organises such workshops on a regular basis. There are no formal conference proceedings. Abstract PDF

  Air transport traffic has increased substantially since the introduction of deregulation in both the USA and the European Union. Moreover, aircraft accidents involving fatalities have exhibited a downward trend over time. Still, a series of widely publicized aircraft accidents in 2005 has raised again a serious issue, namely whether cost reduction in a deregulated aviation environment is achieved at the expense of safety standards. This paper addresses the question by proposing a theoretical model and undertaking related empirical research. In particular, the paper highlights the role of asymmetric information in air travel: adverse selection, principal-agent relationships, search costs and legal liability are among the topics analysed. The formal mathematical model assumes that consumers are involved in both discrete and continuous choices and that safety records are observed while maintenance effort is not. Airlines (as service providers) may benefit from a safety premium but face maintenance costs and potentially legal charges. The model assesses the impact of deregulation by looking at the elasticity of demand, the competitive conduct in the industry and the probability of legal condemnation. The empirical analysis is based on primary data collected through a questionnaire delivered to actual travellers. Discrete choice analysis (based on responses to questions involving Likert scales and socio-economic characteristics) is complemented with a stated preference framework to derive suitable demand curves. The paper concludes by stressing the need to promote a more responsible attitude among the airlines vis-à-vis safety through self-regulation rather than through the exercise of coercive institutional power.

• Papatheodorou, A. and Polychroniades, K. (2005b) Regional Airports in Greece: A Hidden Treasure? Workshop on Airport Market Power: Myth or reality? The role of competition in the future airport industry, organised by the German Aviation Research Society in Vienna, Austria. GARS organises such workshops on a regular basis. There are no formal conference proceedings but the paper will be included as a chapter in a book to be published shortly by Ashgate in its GARS series. Abstract PDF

  The emergence of the low cost carriers phenomenon over the last ten years in Europe has been largely associated with point-to-point services connecting satellite and regional airports. Nonetheless, Greece remains out of this buoyant market: its regional airports are relatively underdeveloped while large areas in the mainland have still no easy access to airport facilities. This paper addresses these issues and explores the market potential for airline and airport services in the Greek regions. In particular, a preliminary discussion about the impact of airports on regional economic development is followed by a presentation of the Greek airport market profile, characterised by large asymmetries and high concentration: regional airports in Greece face substantial difficulties and some of them survive purely because of public service obligation services. Still, the results of the subsequent correlation and spatial asymmetry analysis reveal that although the islands are well-served in aggregate, passenger numbers in the mainland remain below its true potential in terms of income and population. Consequently, a latent critical mass for outbound services seems to exist: this may sustain successful flight operations in the future especially if combined with incoming traffic from low-cost carriers. In any case, appropriate consultation of all related stakeholders is required; hence, the paper proposes a questionnaire to collect suitable primary data for discrete choice and stated preference analysis.

• Lei Z., Papatheodorou, A. and Szivas, E. (2004) The Impact of Low-cost Carriers on Regional Airports Financial Performance: Evidence from the UK. Competing Airports - Theory or Reality?, organised by the German Aviation Research Society in Bremen, Germany. GARS organises such workshops on a regular basis. There are no formal conference proceedings but the paper will be included as a chapter in a book to be published shortly by Ashgate in its GARS series. Abstract PDF

  The rise of low-cost carriers (LCCs) is considered one of the most important outcomes of airline liberalisation in the European Union. The authors argue that the most sustainable competitive advantages that a LCC has are mainly derived from the adoption of point-to-pint service operating from regional airports. However, conflicts also arise as LCCs constantly seeking ways to reduce airport charges. This Paper attempts to measure the impact of LCCs on regional airports financial performance. A panel data analysis is employed and the data cover 21 UK regional airports ranging from 1995/96 to 2002/03. Most variables tested are highly significant and their coefficients have the expected sign. Preliminary findings demonstrate that LCC passengers have significant impact on regional airports' non-aeronautical revenue although this is smaller than the impact of charter and full service airlines passengers. In terms of the impact of LCCs on regional airports aeronautical revenue, further investigation needs to be taken as there exists problem of multicollinearity between the passenger and the flight variables.

• Papatheodorou, A. (2003) Exploring Competition Issues in Tourism. International Conference on Managing Tourism in the Global Economy, organised by Victoria University in Melbourne, Australia. This is a refereed paper published in the conference proceedings. Abstract PDF

  Most advanced market economies have institutional frameworks to safeguard competition and protect consumers against abuse of market power. While competition policy has traditionally focused on heavy industries, the importance of the service sector is now acknowledged. The emergence of large conglomerates in tourism necessitates the study of market structure, business conduct and industry performance and their implications for consumer welfare. The paper challenges the conventional wisdom of backyard capitalism in tourism. It theorizes first on market dominance and merger activity and then focuses on competition issues in major tourism sectors. The implications of air transport deregulation and cruise industry concentration are examined in the transport for tourism section. Subsequently, the role of hotel chains and the vertical integration practices of major tour operators are emphasized in the discussion on hospitality and travel distribution. The conclusions highlight the importance of technology and e-commerce in shaping the future industrial organization of tourism.

• Papatheodorou, A. and Busuttil, L. (2003) EU Accession and Civil Aviation Regimes: Malta and Cyprus as a Case Study. 7th Annual Conference of the Air Transport Research Society, organised by the Air Transport Research Society in collaboration with the Toulouse Business School in Toulouse, France. This is a refereed paper published in the conference proceedings. Abstract PDF

  Aviation deregulation is usually a challenging and demanding task and accession to the European Union requires that all candidate states should harmonise their legislation in the context of the European Common Aviation Area. Malta and Cyprus, the small Mediterranean island-states to join the EU in 2004, will have to abandon any protectionist policies in favour of their flag-carriers and let them survive in a liberal framework. The paper discusses the implications of this regime change for civil aviation in Malta and Cyprus and in addition to the airline industry, it examines the impacts on the complementary tourism sector. Unless carrying capacity limits are understood, the islands may become victims of successful airline liberalisation. The paper concludes by stressing the need for sustainable development and active policymaking.

• Papatheodorou, A. and Song H. (2003) International Tourism Forecasts: A Time Series Analysis of World and Regional Data. Tourism Modelling and Competitiveness Conference, co-organised by the University of Cyprus, University of Nottingham (United Kingdom) and the Cyprus Tourism Organisation in Paphos, Cyprus. This is a refereed paper published in the conference proceedings. Abstract PDF

  Forecasting is an essential analytical tool in tourism policy and planning. This paper focuses on international tourism arrivals and receipts at nominal, real and per capita levels. It uses modern time series techniques based on the period 1960-2000 to produce forecasts for 2001-2010 in the six major World Tourism Organization regions and the world collectively. The initial diagrammatic analysis of existing data suggests that despite conventional wisdom, evolution in the mass tourism era has not been rosy. Performance differs dramatically among the regions, fluctuations are sharp and negative tourism growth is not unusual in real and per capita terms. Similarly, the subsequent forecasts have negative signs occasionally. Policymakers should, therefore, take action to increase revenue generation but not at the expense of sustainable tourism development.

• Papatheodorou, A. (2002a) Tourism and Air Transport in the Mediterranean Region. Travel and Tourism November 2002 Online Conference, organised by MICG on the Internet. This is an invited paper published in the conference proceedings. Abstract

  The creation of the Single Aviation Market in the European Union has very clear direct impacts on air transport development in the Mediterranean Region. Moreover, the introduction of the Euro, while obviously not directly related to air transport is likely to affect accessibility in the Mediterranean Region through its general implications for tourism development. Finally, the rise of terrorism, as most dramatically experienced by the September 11th incident, has an important effect on air transport and tourism development. This paper addresses these issues explicitly and suggests a number of policies required to alleviate the emerging problems.

• Papatheodorou, A. (2002b) Evolutionary Patterns in International Tourism: Beyond the Conventional Wisdom. 8th Annual Conference of the Asia Pacific Tourism Association, organised by the Asia Pacific Tourism Association (APTA) in collaboration with Dongbei University in Dalian, China. This is a refereed paper published in the conference proceedings. Abstract

  This paper raises important policy conclusions based on a diagrammatic analysis of international tourism series for the period 1960-2000. While the mainstream framework focuses on the evolution of total international tourist arrivals and receipts, the weight is currently put on real per capita tourism receipts, as this series shows the individual direct economic impact of a tourist on a destination. Both the world and regional analyses show that despite the dramatic growth of other series, real per capita tourism receipts have not a clear upward trend. In other words, post-war tourism growth has been merely based on scale - not quality - and this has serious implications for sustainable tourism economic development.

• Papatheodorou, A. (2001) Tourism, Evolution and Dualism in Structures. 97th Annual Meeting of the Association of American Geographers, organised by the Association of American Geographers (AAG) in New York, USA. This is a refereed paper and its abstract is published in the conference proceedings. Abstract PDF

  Since the Second World War, the managerial thought in tourism has followed, albeit with a lag, the fashions prevailing each period in the aggregate economy: over the last fifteen years, it has been characterised by the blow of market deregulation and liberalisation gales. Early results from such practices have been impressive; nowadays, however, the neo-classical euphoria is more modest. This increasing scepticism stems from the inability of market mechanisms to operate efficiently in de facto non-competitive environments. Interestingly, this also seems to be the case with the tourist industries, where, in contrast to the common belief, contestability conditions do not hold. More specifically, the Conference Paper argues that a number of evolutionary mechanisms has resulted in the creation of an asymmetric market structure, which is characterised by the co-existence of large (trans)national tourism oligopolies/oligopsonies with a competitive fringe of regional or local calibre. This configuration is shown to have significant spatial implications and be consistent with the creation of core and peripheral tourist destinations at various territorial scales. Subsequently, it is claimed that the emerging spatio-temporal patterns are sustained, reinforced or destroyed by the prevailing consumer preferences in conjunction with history, industrial practices and agglomeration (dis)economies. Taking the above into consideration, the Paper suggests that liberal tourism policies can be successful in restructuring and modernisation only if they are based on a proper industrial geographical analysis; the proposed measures aim at benefiting both the existing regions and the newcomers in the tourist market.

• Buhalis, D. and Papatheodorou, A. (2001) Marketing Efficiently the Greek Tourism Product by using eTourism. International Tourism Conference organised by the British - Hellenic Chamber of Commerce in Athens, Greece. Dr Papatheodorou was invited to participate in this conference as a keynote speaker. Abstract PDF

  This paper highlights the strategic aims of tourism destinations in the 21 st century and discusses effective marketing strategies based on electronic commerce. If successful, these strategies may alleviate the current pathology of tourism and enhance the bargaining position of destinations through disintermediation in the marketplace.

• Papatheodorou, A. (2000) Accessibility and Market Structure: Implications for Island Tourism Destinations in the Mediterranean Region. Tourism on Islands and Specific Destinations, organised by the University of the Aegean in Chios, Greece. This is a refereed paper published in the conference proceedings. Abstract PDF

  Till very recently, transport network flows within this consolidated core-periphery Mediterranean configuration experienced only marginal changes, since the tight regulatory schemes effectively deterred competition among suppliers. More specifically, within the protectionist national milieu, the airline operations in thin island routes were indirectly subsidised by profits in thick markets; similarly, many liners were allowed to use pooling agreements in their corporate strategy. Nevertheless, the full liberalisation of air transport within the European Union since 1997 and the more recent expansion of cabotage rights in the sea passenger market is likely to shake the accessibility status quo in island destinations by posing a large number of opportunities and threats. This paper aims at exploring the issues that emerge out of this situation by focusing on the price, quality, information and environmental dimensions of the problem. Industrial organisation and regional development theories are brought together to show that though justifiable in principle, deregulation is not a panacea; unless a set of active policy measures are introduced, benefits from liberalisation in transport will be asymmetric and endanger the sustainability of tourism development in the small islands of the Mediterranean Region.

Academic Books

• Graham, A., Papatheodorou, A., Forsyth, P. (eds) (200X) Aviation and Tourism: Implications for Leisure Travel, Aldershot: Ashgate (in progress).
• Sinclair, T. M., Stabler, M. J. and Papatheodorou, A. (200X) The Economics of Tourism, 2nd Edition, London: Routledge (in progress).
• Papatheodorou, A. (ed) (2006) Corporate Rivalry and Market Power: Competition Issues in the Tourism Industry, London: IB Tauris.
• Papatheodorou, A. (ed) (2006) Managing Tourism Destinations. Cheltenham: Edward Elgar Publishing.
• Palaskas, T., Papatheodorou, A. and Tsampra, M. (2006) Cultural Heritage as a Growth Factor in the Greek Economy (in Greek). Athens: Academy of Athens.

Book Chapters

• Papatheodorou, A. (200X) The Impact of Civil Aviation Regimes on Leisure Market. In Graham, A., Papatheodorou, A. and Forsyth, P. (ed) Aviation and Tourism: Implications for Leisure Travel, Aldershot: Ashgate (book in progress).
• Papatheodorou, A. (200X) Airlines and Tourism: Interrelations and Trends. In o’Connell, J. F. and Williams, G. (eds) Competition in Aviation, Aldershot: Ashgate (book in progress)
• Papatheodorou, A. (2006a) Corporate Rivalry, Market Power and Competition Issues in Tourism: an Introduction. In Papatheodorou, A. (ed) Corporate Rivalry and Market Power: Competition Issues in the Tourism Industry, London: IB Tauris, 1-19.
• Papatheodorou, A. (2006b) Conclusion: The Need for Constructive Policymaking. In Papatheodorou, A. (ed) Corporate Rivalry and Market Power: Competition Issues in the Tourism Industry, London: IB Tauris, 201-205.
• Papatheodorou, A. (2006c) The Cruise Industry – An Industrial Organisation Perspective. In Dowling, R. (ed) Cruise Ship Tourism, Wallingford: CABI Publishing, 31-40. Abstract

  This chapter aims at contributing to the literature by analysing the cruise sector from an industrial organisation perspective. Section two deals with the nature of cruise economics, focusing on issues of scale and scope. It provides a rationale for pursuing large company size in the industry. Section three explores the dimensions of competition in the cruise sector in terms of prices, service/product characteristics and capacity. These dimensions are structurally interrelated with the cruise liners' size and scale. Section four focuses then on barriers to market entry; in conjunction with the previous sections, it can explain the observed concentration in the industry. The chapter subsequently discusses issues of major importance in competition analysis, assessing the impact of market dominance, mergers and acquisitions; in this context, it deals with definitions and boundaries of product and geographical cruise markets. This framework offers the necessary background for the brief case study on the recent merger between Carnival and POPC. Finally, section six concludes and provides directions for further research.

• Papatheodorou, A. (2006d) Micro-foundations of Tourist Choice. In Dwyer, L and Forsyth, P. (eds) International Handbook of Tourism Economics, Cheltenham: Edward Elgar Publishing, 73-88. Abstract

  Tourism choice and its micro-foundations have received substantial attention by researchers in social sciences from both a theoretical and an empirical perspective. As in most cases with tourism, researchers are predominantly interested in applying the principles of their discipline to explain tourist choices. The economists would mainly focus on rational behaviour and utility maximisation issues, the geographers would examine tourist flows in space, the psychologists would discuss motivation while other social scientists would highlight socio-cultural factors. Likewise, researchers in marketing and advertising would study how tourist choice can be affected in favour of a targeted product or destination. To understand, therefore, tourist choice in full it is important to integrate the above approaches and produce a creative, inter-disciplinary amalgam. Such a task, however, is beyond the scope of this chapter, which essentially explains how economics has treated the issue. Having the above in mind, section two discusses the foundations of tourist choice in the context of the mainstream classical microeconomic theory. This is the standard benchmark in consumer demand analysis upon which other approaches are presented and evaluated. In fact, despite some advantages, the classical theory fails to address essential issues including separability of preferences, discreteness in choice and product differentiation. As a valid alternative, therefore, section three analyses the characteristics theory and its application in tourism economics. This is an interesting framework that deals successfully with many of the classical theory caveats. Section four focuses on information issues and section five considers developments from a dynamic perspective. Finally, section six concludes and proposes areas for further research.

• Papatheodorou, A. (2006e) Introduction. In Papatheodorou, A. (ed) Managing Tourism Destinations, Cheltenham: Edward Elgar Publishing, xv-xxvi.
• Lei Z., Papatheodorou, A. and Szivas, E. (200X) The Impact of Low-cost Carriers on Regional Airports Financial Performance: Evidence from the UK. In GARS book series, Aldershot: Ashgate (in progress).
• Papatheodorou, A. (200X) Regional Airports in Greece: A Hidden Treasure? In GARS book series, Aldershot: Ashgate (in progress).
• Papatheodorou, A. (2005a) Liberalisation and deregulation for tourism. In Buhalis, D. and Costa, C. (ed) Tourism Management Dynamics: Trends, Management and Tools, Oxford: Butterworth - Heinemann, 68-77. Abstract

  The intervention of policymakers in tourism has been limited, being perceived as a 'pleasure' rather than serious economic sector. However, the industrial structure of tourism is quite complicated. More specifically, a market dualism seems to have emerged, where a multitude of small producers (competitive fringe) coexists with a small number of powerful transnational corporations. Size does matter as it enables the seizure of scale and scope economies and imposes barriers to market entry and exit through asset specificity and irreversibility. Corporate network expansion and concentration in tourism seem to follow a self-reinforcing pattern through collaborative and integrative practices taking advantage of the current liberal policymaking worldwide. Although increased concentration does not necessarily imply restrictive conduct and abuse of market power, it is consistent with anti-competitive practices. Given the large size of the tourism industry and the subsequent potential detriment to the consumer welfare, policymakers must be alert. This chapter studies competition issues that have emerged in the transport for tourism, accommodation and travel distribution sectors following deregulation and liberalisation over the last two decades.

• Papatheodorou, A. (2005b) The Tourist Area Life Cycle and the Spatial Implications of Competition. In Butler, R. (ed) The Tourism Area Life Cycles: Conceptual and Methodological Issues, London: Channel View Publications, 67-82. Abstract

  Early results from market deregulation have been quite impressive; nowadays, however, the neo-classical euphoria is much more modest. This increasing scepticism stems from the inability of market mechanisms to operate efficiently in de facto non-competitive environments. Interestingly, this also seems to be the case with the evolution of the tourism sector, where issues of market power and territorial configuration should be explicitly addressed. This chapter aims therefore at extending the Tourism Area Life Cycle model from an industrial geography perspective to study a number of issues that have emerged since the original conceptualisation of the theory. A similar line of thought was originally followed by Debbage who applied the profit life cycle theory in the context of tourism: unfortunately, however, this promising research area has yet remained under-explored: it is therefore important to move it forwards. On these grounds, the chapter discusses first the existing interdependence between market and spatial structures and then presents a model of tourism evolution both in the short and in the long run. It concludes by proposing a number of meaningful policy measures that may alleviate some of the emerging problems in tourism development.

• Papatheodorou, A. (2003) Deregulation. In Pigram, J. and Jenkins, J. (eds) Encyclopaedia of Leisure and Outdoor Recreation, London: Routledge. Abstract

  Deregulation refers to a policy framework that reforms or even abolishes regulation, focusing primarily on the economic aspects of the latter. More specifically, market structure ranges from publicly owned or private - but strictly regulated - natural monopolies (e.g. rail network) to infinitesimal, perfectly competitive suppliers. In-between, private enterprises are subject to varied forms of regulation or allowed to compete freely within a pre-specified context supervised by the competition authorities. Building on neo-liberal economics, the proponents of deregulation reject most regulatory schemes arguing that their compliance costs and the effective lobbying of associated interest groups (e.g. transport companies) result in social welfare losses in terms of higher prices and/or lower quality of services.

Dissertations

• Papatheodorou, A. (2001) Exploring the Determination of Student Performance in University Modules and Streams. Probation Project, School of Management Studies for the Service Sector, University of Surrey. Abstract

  This project aims at exploring whether the assessed performance of students can be explained systematically by module-specific, semester-specific and social background variables. To accomplish this task, the project undertakes an econometric exercise based on a generally accepted methodology. Should any of the factors prove statistically significant, then a number of educational policy issues emerge: for example, if it proves that non-European students perform systematically worse than British, then the University should review its policy towards international students. On the other hand, if the various social background factors prove statistically insignificant, it would be consistent to argue that the current framework of education policy in the School is adequate or at least non-discriminatory. Section two of the project portrays the profile of the two courses and provides a non-technical explanation of the determinant factors used in the econometric study. Section three comments on a number of interesting descriptive statistics, while section four reports and discusses the results of the study. Finally, section five concludes and makes suggestions for future research in the area.

• Papatheodorou, A. (2000) Evolutionary Patterns in Tourism: A Spatial Industrial Organisation Approach. DPhil Thesis, School of Geography, University of Oxford. Abstract

  The present DPhil Thesis aims at succeeding in the following four dimensions:

  • to convince the reader about the importance of tourism for the world economy and validate its significance as a tool of development within the context of sustainability,
  • to review the existing literature in resort growth and evolution and stress its inadequacy to address holistically the contemporaneous challenges in the tourist industry,
  • to provide research and policymaking with an alternative theoretical vision on evolutionary patterns in tourism; subsequently, to model this approach mathematically and test it empirically, and
  • to persuade the academic community that this new line of thinking is not applicable solely to tourism but also to the wider field of economic geography.

  In particular, the economic significance of tourism is underlined in the Introduction, where a set of interesting statistics are followed by an analysis of the various developmental dilemmas that have emerged over time. In the Author's opinion, tourism is associated with a substantial number of benefits, if it is promoted according to the principles of responsible and sustainable operational planning. These virtues may help the developing world to enter the path of economic prosperity; moreover, they may contribute to the regeneration of peripheral cities and regions within the developed countries of the West.

  It is believed that tourism development issues are best approached through the study of the prevailing evolutionary patterns at different levels of destination scale. On these grounds, chapter 1 first reviews the existing literature on the topic, which is dominated by various versions of the Resort Life Cycle, namely a demand-oriented theory shaped in the early 1980s. Despite its influence, however, this line of research is shown to suffer from a number of conceptual difficulties. Most importantly, it does not account satisfactorily for the power of the large conglomerates to change the spatial configuration in tourism. This is a major drawback, given the current wave of mergers and acquisitions in the industry.

  Having the above in mind, the main objective of the Thesis, i.e. the construction of a modern analytical framework that explicitly encapsulates the interdependence between spatial and industrial structures in tourism, is appropriate. More specifically, chapter 2 sets the proposed approach at an aggregate level while the next six present sectoral topics on the airline (chapters 3 & 4), accommodation (5 & 6) and tour operations (7 & 8) industries. The focus is on issues of market dynamics and their implications for tourism development; sustainable policy measures are also extensively discussed in separate chapter sections. From a synthetic perspective, chapter 9 recapitulates and presents a theory of evolutionary patterns for tourist destinations.

  Taking the above into consideration, the second part of the Thesis complements the theoretical setting with a formal mathematical argumentation. Chapter 10 analyses this approach and introduces a model based on the New Economic Geography (note: this term is used to refer to the strand of academic literature that is mainly represented by the recent works of Krugman, Venables, Fujita et alia). Implications and extensions are subsequently discussed in chapter 11, where the model is calibrated numerically and supported graphically; all methods reveal the importance of operational planning in the most dramatic way. Finally, the third part of the project undertakes an empirical study, where an operational form of the theoretical ideas is tested statistically. Chapter 12 examines a number of general issues and focuses on the methodology of the correlation analysis between market and spatial structures; chapter 13 performs a similar task for the hedonic price econometric exercise, which assesses the relative pricing of tour operators and destinations in the Mediterranean tourist sunlust market. Chapters 14 and 15 report the results of the two frameworks in tabular form, discuss the outcome and draw some interesting policy conclusions; visual representation is also provided by a number of thematic maps, designed on a GIS programme.

  Thus, the aim is to deliver an interesting study that fills the major theoretical and empirical gaps in the contemporary academic literature on tourism. More interestingly, however, the Epilogue of the Thesis argues that the project constitutes a valid piece of research, which addresses a wide range of topics and potentially extends the current frontiers of the New Economic Geography. In particular, the latter may be understood as the conceptual framework that brings together the fields of mainstream economics and economic geography. So far, however, the focus has been more on the "economic" than the "geography". The importance of industrial organisation has been largely ignored, as the great majority of models assume monopolistic competition. Similarly, the evolution of spatial hierarchical configurations and the analytical significance of Geographical Information Systems have been underestimated. Unsurprisingly, therefore, the interdependence between market and spatial structure has not received the attention it deserves. On the other hand and despite its predominant focus on tourism, the Thesis deals with all the above-mentioned issues in detail.

• Papatheodorou, A. (1997) The Demand for International Tourism: Theory and Application to the Mediterranean Region. MPhil Thesis, Sub-Faculty of Economics, Faculty of Social Sciences, University of Oxford. Abstract

  This Thesis studies the demand for international tourism. The Introduction is mainly devoted to a broad survey of some selected aspects of the tourist product. Chapter 1 uses the microeconomic tools of consumer demand theory to construct a consistent theoretical framework for the analysis of international tourism. The most prominent theories of product differentiation are reviewed and applied to the tourism sector. Chapter 2 discusses the most important attempts to model econometrically the demand for international tourism in the past. Most of the discussion refers to tourism applications of the Almost Ideal Demand System (AIDS). In Chapter 3 a model of international tourist demand is set up and tested for the Mediterranean Region over the last 30 years. The Thesis concludes by providing a summary of the main findings and discussing possible extensions for future work in the field.

• Papatheodorou, A. (1995) The Effects of Inflation on the Greek Economy. BA Thesis, International and European Economic Studies, Athens University of Economics and Business, Greece.