engleski

Spatial Spillovers of Tourism Activity on Housing Prices: The Case of Croatia

The tourism effects on housing prices within cities and regions have been analyzed in the literature but the findings on the spatial effects of these processes are limited and ambiguous which calls for further investigations and evidence- based recommendations to policy makers. In areas hit by overtourism, house price hikes have the potential of spillovers to adjacent cities and towns as well as across wider space. Our study widens existing knowledge on the tourism-housing relationship by exploring the existence and extent of spatial spillovers from tourism-intensive cities and towns on housing prices of neighboring areas. A Durbin spatial autoregression panel model is applied on a population of cities and towns from Croatia, one of the small tourism-driven European economies during 2012-2019 period. Different spatial weight matrices are applied to the model to explore the spatial reach of effects. Our findings, robust to the use of different tourism activity proxies, provide support to the existence of spatial spillover effects. The strongest effects of tourism on housing prices within and between cities come through conversion of housing stock in rental properties rather than through increase of private accommodation share in total accommodation capacities. Particularly strong effects are found once full spatial correlation is taken into account.

tourism ; house prices ; spatial spillovers ; Durbin spatial autoregression model ; Croatia

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