Shortening distances with destination branding

Brand distance> Geographical Distance

-8 th Developments in Ecomic theory and policy

Bilbao: 29-30 Juny 2011

Álvaro Fierro: Ph.D Applied Economics V

Sergio Sánchez: Ph.D Applied Economics III

Guggenheim Museum Bilbao: considered as a specific case of success in terms of attracting visitors and tourists

-new image and a structural change in the region

Bilbao has a strong brand, but not all places around Bilbao have taken advantage of its traction

Introduction

Target: measure how influential is the brand of Bilbao in Bizkaia across the tourism effect

Places:-Balmaseda (good accessibility)

-Getxo (closeness distance)

-Gernika (worse accessibility)

Bilbao pulled capital

Geographical Distance

Balmaseda. Digital Reputation Data

Balmaseda, Getxo, Gernika, Bilbao.-Monthly data of the tourist offices in each

place: January 1999 through December 2010

Dummy Variables

Data Collection

20000

30000

40000

50000

60000

70000

80000

2000 2002 2004 2006 2008 2010

Bilb

ao

Flow of tourists: Time serie(s)

0

2000

4000

6000

8000

10000

12000

14000

16000

2000 2002 2004 2006 2008 2010

Getx

o 0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

2000 2002 2004 2006 2008 2010

Gern

ika

0

500

1000

1500

2000

2500

3000

3500

2000 2002 2004 2006 2008 2010B

alm

ase

da

Bilbao

Gernika

Getxo

Balmaseda

The methodology used was the Time Series, more specifically the ARMAX models (Bierens, 1987), where general representation is described by:

Methodology

The appeareance of Balmaseda in one of the most widely read media is no significant: is not relevant for attracting tourists

Opening first section (2005) of the Cadagua highway it had positive influenece attracting tourism.

Opening of the second section (2008) it had not positive influenece attracting tourism.

-¿Crisis ?

Results of Balmaseda

β1 Balmaseda Getxo Gernika

Sign +/- - +

Relevance No No Yes

The influence of Bilbao´s brand

• Bilbao does not affect neither Getxo nor Balmaseda despite of its proximity, accessibility and touristic potential

• Bilbao affects Gernika due to its brand-image despite of its inaccessibility and remoteness from it.

Conclusions

Brand Distance

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