Innovation, hotel occupancy, and regional growth

Abstract

In this article we contribute to the analysis of innovation in the tourism industry and more specifically to understanding the role of innovation on the hotel occupancy. Furthermore, we discuss how the growth in hotel occupancy due to innovation increases, directly and indirectly, production, added value and employment in other sectors of the economy. In this way, we calculated the total impact on the Balearic economy of an innovation process in the Balearic hotel industry as well as the specific effects on different economic sectors. Positive and significant impact on potential growth was found with added value of between 1.6% and 2.2%. The micro–macro model presented in this work justifies implementing policies promoting innovation in the hotel industry.