Reconceptualising Regional Inequalities

The Application of a Modified Philippe Martin Model to the Tourism Sector

Abstract

Tourism can play a pivotal role in relation to spatial development perspectives, regional processes, and the efficient use of different kinds of resources. It is no different in Central Eastern Europe; tourism frequently plays such a role in Hungary, especially in the case of areas with disadvantaged spatial conditions. In this paper, the effect of tourism on the region as a primary source of income is investigated. The research hypothesis is that Philippe Martin's regional economic model could be modified to describe the spatial effects of tourism. According to the research hypothesis, the methodology of the original and a modified Philippe Martin model is shown in the second part of this paper, and this is followed by the modelling results. In the case of the Hungarian research area, a detailed analysis of statistics is shown. The spatial focus of this paper is on Lake Tisza in Hungary, which has a unique character. On the other hand, it is rich in both natural capital and disadvantaged areas when socio-economic conditions are considered. The research results showed that the predefined scenarios of the Philippe Martin model individually do not correctly describe the effect of tourism, but taken together could explain the economic impacts of tourism. Tourism has the same effect as a combination of monetary transfer from the wealthy regions to the impoverished area, a diminution of transaction costs within the impoverished region, and a slight increase in the cost of innovation or a small decrease in diffusion of innovation.