Spatial Structure of Tourism System: Spatial Model for Monopolistic Competition with Asymmetry

Abstract

By establishing an asymmetric monopolistic competition model, this article has brought economy to scales, travel cost, love-of-variety, and product differentiation into an integrated framework. We conclude that tourism will agglomerate in the traditional popular destination with lower fixed costs of production and good location. But preference for variety and product differentiation will make tourism spread from the traditional popular destination to other places. We suggest that insisting on localization, government's domination, and sightseeing tourism is good for the regions with comparatively inadequate infrastructure, reception facilities, and location to fast improve their market share. The outskirts close to the tourist market should develop vocational tourism.