The Importance of Discount Rate and Trustfulness of A Local Currency for the Development of Local Tourism
DOI:
https://doi.org/10.29036/jots.v10i19.117Keywords:
local currency, community currency, digital currency, trust, discount rate, local tourism, Cieszyn Silesia region.Abstract
Local currencies have been used to achieve local economic, social and environmental goals that are not attained by national currencies. Thus, they can also be applied as a mean of the regional development focused on the development of the local tourism. However, trustworthiness and costs of local currencies have been some of the main impediments in their widely usage. Therefore, discount rates that practitioners (including municipal authorities and governments) of local currencies present for potential users might play a key role to deal with these issues. Within this context, this research intends to assess the relationship between discount rates that potential users demand to use local currencies (a paper-based and a digital) and their trust to these currencies. To hit this target, a questionnaire survey was directed to 407 employees of a regional business in Cieszyn Silesia region and the responses were analyzed by binary logistic regression test in SPSS Statistical Software. The results confirm that potential users with more trust to local currencies have more tendencies to demand higher discount rates. Cultural values, occupational status, age, income levels of respondents and potential roles of governments and local authorities in local currency implementations might be the reasons of these findings.
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Copyright (c) 2019 Journal of Tourism and Services
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Journal of Tourism and Services (ISSN 1804-5650) is published by the Center for International Scientific Research of VŠO and VŠPP in cooperation with the following partners:
- University College of Business in Prague, Czech Republic
- University of Entrepreneurship and Law, Prague, Czech Republic
- School of Business and Administration of the Polytechnic Institute of Setúbal, Portugal
- Faculty of Operation and Economics of Transport and Communications, University of Zilina, Slovakia
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