The Importance of Discount Rate and Trustfulness of A Local Currency for the Development of Local Tourism

Civelek, M., Ključnikov, A., Krajčík, V., Žufan, J. (2019). The Importance of Discount Rate and Trustfulness of A Local Currency for the Development of Local Tourism. Journal of Tourism and Services, 10(19): 77-92. https://doi.org/10.29036/jots.v10i19.117

  • Mehmet Civelek University of Entrepreneurship and Law
  • Aleksandr Ključnikov University of Entrepreneurship and Law
  • Vladimír Krajčík University College of Business in Prague
  • Ján Žufan University College of Business in Prague
Keywords: 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.

 

Author Biographies

Mehmet Civelek, University of Entrepreneurship and Law

Mehmet Civelek, Mgr., PhD.

Institute of Entrepreneurship and Marketing, University of Entrepreneurship and Law, Michálkovická 1810/181, 710 00 Ostrava-Slezská Ostrava, Czech Republic, www.vspp.cz

m_civelek@windowslive.com Scientific researcher in a post-doc position.

Science field and direction: SMEs, Credit Risk Management, Entrepreneurship, Entrepreneurial Orientation, Bank Credit, Sharing Economy, Tourism, Local-Digital currencies, Ridesharing, Supply Chain Finance, Auditing-Controlling.  

Aleksandr Ključnikov, University of Entrepreneurship and Law

Aleksandr Ključnikov,  Doc., Ing, PhD.

Institute of Entrepreneurship and Marketing, University of Entrepreneurship and Law, Michálkovická 1810/181, 710 00 Ostrava-Slezská Ostrava, Czech Republic, www.vspp.cz

kliuchnikov@gmail.com Rector, Member of the Executive Board

Science field and direction: Entrepreneurship in the segment of Small and Medium Sized enterprises, Management, Financial management and Corporate Finance, Sharing Economy, Digital currencies and general aspects of Economic Development.

Vladimír Krajčík, University College of Business in Prague

Vladimír Krajčík, doc. RNDr. Ph.D.

Department of Information Technologies and Analytical Methods, University College of Business in Prague, Spálená 76/14, 110 00 Nové Město, Prague, Czech Republic, www.vso.cz,

krajcik@vso-praha.eu, Rector.

Science field and direction: Management of information systems, Entrepreneurship, Sharing Economy, Tourism economy, Digital currencies.

Ján Žufan, University College of Business in Prague

Ján Žufan, RNDr., Ph.D., MBA

Department of Economics and Economy, University College of Business in Prague, Spálená 76/14, 110 00 Nové Město, Prague, Czech Republic, www.vso.cz

zufan@vso-praha.eu Assistant professor.

Science field and direction: Information systems management, Human Resource Management, Entrepreneurship, Tourism Management.

Published
2019-10-31