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Overcapacities in the Tunisian tourism industry

Abstract : We provide an overview of the Tunisian tourism industry on the long run, wherein investment has been on rise since the early 1990s and is obviously facing overcapacities. We document the trend of the fundamentals of tourism industry in terms of ongoing supply, harsh competition and lagging market share. We examine its performance as regards low receipts, declining value added and the lack of employment absorbing capacity. Investment overcapacities are fuelled by lax financing triggering non-performing loans and large regulation incentives. We suggest a tentative explanation of path dependency from the supply side in terms of rent-seeking behaviour of private entrepreneurs and we emphasize long-lasting State capture and the grip of cronyism.
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Submitted on : Tuesday, December 19, 2017 - 11:01:29 AM
Last modification on : Thursday, September 29, 2022 - 2:21:15 PM


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  • HAL Id : hal-01667222, version 1



Philippe Adair, Ali Abdallah. Overcapacities in the Tunisian tourism industry. 14th MEEA Conference, 2015, Hammamet, Tunisia. ⟨hal-01667222⟩



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