Quantifying the economic impact of nature, recreation and heritage: a spatial assessment of land prices in alpine tourism regions

Abstract The dynamics of land prices in Alpine tourism regions are shaped by natural amenities, limited buildable land, and demand from second-home owners, posing significant challenges for sustainable regional development. This study examines the spatial impacts of alternative determinants of land value in Tyrol, Austria, including recreational activities, cultural heritage, and environmental features, using a Spatial Durbin Error Model (SDEM) while controlling for primary land value drivers. The results reveal skiing as the most influential recreational driver of land prices, with strong direct and spillover effects, while running and cycling activities show significant localized positive impacts, with the latter exhibiting nonlinear effects influenced by topographical and infrastructural variations across municipalities. Environmental features such as Natura 2000 protected areas and water areas consistently exhibit negative effects, reflecting restrictions on buildable land use. Cultural heritage positively impacts land values; however, its influence diminishes when control variables are introduced. The inclusion of controls enhances the model’s explanatory power, confirming the critical roles of tourism intensity, residential and leisure attractiveness in shaping land markets but it also underscores the relevance of the alternative determinants investigated, highlighting the delicate balance and inherent tensions between tourism growth, housing affordability, and environmental protection in Alpine regions. This emphasizes the necessity of sustainable land use strategies to manage these competing priorities effectively. Furthermore, the study leverages Strava heatmap data to provide advanced insights into physical activity patterns, demonstrating the potential of alternative and multimodal data in spatial econometric analysis.