HEDGING BY USING WEATHER DERIVATES IN WINTER SKI TOURISM
Tourism, as one of the main driving forces of economic development, is exposed to many risks. Besides frequent fluctuations in foreign currency exchange, prices of fuel and transportation, the tourism industry has become more sensitive to weather conditions lately. One of the new instruments which...
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| Format: | Article |
| Language: | English |
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Naučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt
2018-01-01
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| Series: | Ekonomika Poljoprivrede (1979) |
| Subjects: | |
| Online Access: | https://www.ea.bg.ac.rs/index.php/EA/article/view/10 |
| _version_ | 1797825089582923776 |
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| author | Bojan S. Đorđević |
| author_facet | Bojan S. Đorđević |
| author_sort | Bojan S. Đorđević |
| collection | DOAJ |
| description |
Tourism, as one of the main driving forces of economic development, is exposed to many risks. Besides frequent fluctuations in foreign currency exchange, prices of fuel and transportation, the tourism industry has become more sensitive to weather conditions lately. One of the new instruments which can be efficiently used for weather risk hedging is weather derivatives (forwards, futures, options and swaps on chosen weather variables - temperature, rain, snow, wind etc.). In this paper, we will present the possibility of weather derivatives application in winter tourism - snowfall forwards - in order to hedge the business of ski lift operator company. Our research is based on snowfall data of Kopaonik mountain ski resort and revenues of ski lift operator company. We will show that weather derivatives might be an effective tool for hedging weather risk and reducing the volatility of companies revenues in the winter ski tourism business in Serbia.
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| first_indexed | 2024-03-13T10:48:55Z |
| format | Article |
| id | doaj.art-11549fc5aecf477aad95e1579f3be0dd |
| institution | Directory Open Access Journal |
| issn | 0352-3462 2334-8453 |
| language | English |
| last_indexed | 2024-03-13T10:48:55Z |
| publishDate | 2018-01-01 |
| publisher | Naučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, Bukurešt |
| record_format | Article |
| series | Ekonomika Poljoprivrede (1979) |
| spelling | doaj.art-11549fc5aecf477aad95e1579f3be0dd2023-05-17T16:57:42ZengNaučno društvo agrarnih ekonomista Balkana, Beograd; Institut za ekonomiku poljoprivrede, Beograd i Akademija ekonomskih nauka, BukureštEkonomika Poljoprivrede (1979)0352-34622334-84532018-01-0165110.5937/ekoPolj1801125DHEDGING BY USING WEATHER DERIVATES IN WINTER SKI TOURISMBojan S. Đorđević0Faculty of Management Zaječar, Megatrend University Belgrade Tourism, as one of the main driving forces of economic development, is exposed to many risks. Besides frequent fluctuations in foreign currency exchange, prices of fuel and transportation, the tourism industry has become more sensitive to weather conditions lately. One of the new instruments which can be efficiently used for weather risk hedging is weather derivatives (forwards, futures, options and swaps on chosen weather variables - temperature, rain, snow, wind etc.). In this paper, we will present the possibility of weather derivatives application in winter tourism - snowfall forwards - in order to hedge the business of ski lift operator company. Our research is based on snowfall data of Kopaonik mountain ski resort and revenues of ski lift operator company. We will show that weather derivatives might be an effective tool for hedging weather risk and reducing the volatility of companies revenues in the winter ski tourism business in Serbia. https://www.ea.bg.ac.rs/index.php/EA/article/view/10weather derivatives, weather risk, snowfall, hedging, winter ski tourism |
| spellingShingle | Bojan S. Đorđević HEDGING BY USING WEATHER DERIVATES IN WINTER SKI TOURISM Ekonomika Poljoprivrede (1979) weather derivatives, weather risk, snowfall, hedging, winter ski tourism |
| title | HEDGING BY USING WEATHER DERIVATES IN WINTER SKI TOURISM |
| title_full | HEDGING BY USING WEATHER DERIVATES IN WINTER SKI TOURISM |
| title_fullStr | HEDGING BY USING WEATHER DERIVATES IN WINTER SKI TOURISM |
| title_full_unstemmed | HEDGING BY USING WEATHER DERIVATES IN WINTER SKI TOURISM |
| title_short | HEDGING BY USING WEATHER DERIVATES IN WINTER SKI TOURISM |
| title_sort | hedging by using weather derivates in winter ski tourism |
| topic | weather derivatives, weather risk, snowfall, hedging, winter ski tourism |
| url | https://www.ea.bg.ac.rs/index.php/EA/article/view/10 |
| work_keys_str_mv | AT bojansđorđevic hedgingbyusingweatherderivatesinwinterskitourism |