Location factors and agglomeration economies in the hotel industry: the case of Spain

Purpose This research investigates the effect of accessibility to points tourist interest (buffer) and direct indirect spatial spillover effects agglomeration economies on tourism industry revenues in Spain. Design/methodology/approach Data were collected from Bureau van Dijk's (BvD) Orbis global database. The data analysed using a econometric model Cobb–Douglas production function. Findings study reveals that hotels located inside buffer zone achieve better economic outcomes than outside buffer. Furthermore, results show there is hotel industry. Practical implications provide valuable information for identifying areas where will produce revenue area influence location characteristics. relevant already established destination or when seeking new hotel. Social this can help city planners influencing distribution fit desired patterns improve an area's beauty. Originality/value paper provides insights into how investment, structural characteristics, reputation affect revenue.