Resumen de Location factors and agglomeration economies in the hotel industry: the case of Spain

Andrea Valenzuela Ortiz, Jorge Miguel Chica Olmo, José Alberto Castañeda García

• Purpose–Thisresearch investigates the effect of accessibility to points of tourist interest (buffer) and direct and indirect spatial spillover effects of agglomeration economies on tourism industry revenues in Spain. Design/methodology/approach– Data were collected from the Bureau van Dijk’s (BvD) Orbis global database. The data were analysed using a spatial econometric model and the Cobb–Douglasproduction function. Findings– This study reveals that hotels located inside the buffer zone of points of tourist interest achieve better economic outcomes than hotels located outside the buffer. Furthermore, the results show that there is a direct and indirect spatial spillover effect in the hotel industry. Practicalimplications–Theresultsprovidevaluableinformationforidentifyingareaswheretheagglomeration of hotels will produce a spillover effect on hotel revenue and the area of influence of location characteristics. This information is relevant for hotels already established in a destination or when seeking a location for a new hotel. Socialimplications–Theresultsofthisstudycanhelpcityplannersininfluencingthedistributionofhotels to fit desired patterns and improve an area’s spatial beauty. Originality/value– The paper provides insights into how investment, structural characteristics, reputation and location affect hotel revenue.