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

Arbeitspapier

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 SeeminglyUnrelated 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Quaderni - Working Paper DSE ; No. 1177

Classification and Topics

• Classification: Wirtschaft ; Environmental Economics: General ; Climate; Natural Disasters and Their Management; Global Warming ; Tourism Economics: General
• Subject: natural disasters ; tourism-led economy ; resilience ; recovery from disaster

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Leoni, Veronica ; Boto-García, David
• Event: Veröffentlichung
• (who): Alma Mater Studiorum - Università di Bologna, Dipartimento di Scienze Economiche (DSE)
• (where): Bologna
• (when): 2022

Further information

• DOI: doi:10.6092/unibo/amsacta/7077
• Handle: http://hdl.handle.net/10419/282299
• Last update: 10.03.2025, 11:42 AM CET