Real State Bubbles in Touristic Destinations: some preliminary regards

Abstract

The article analyzes the emergence conditions for real estate bubbles in tourist destinationsthat are part of the marketing channels of large international tour operators. Initially itdiscusses the literature dealing with speculation and asset bubbles themes in the real estateindustry, defining the indicators from which it is possible to identify the emergence of ahousing bubble in a given space. It examines the factors associated with demand and supplyconditions in the industry in a tourist destination and adopts the hypothesis of an international tourism propagative mechanism of real estate bubbles that are occurring orhave occurred in major centers of origin of these visitors. It concludes that the speculativemovement in real estate markets of these destinations must be reinforced by internaldeterminants, such as domestic demand, which tends to be strongly driven by the speculativemovement, as well as the credit expansion within these areas, due to monetary policy in force.