Journal of Tourism and Hospitality Management

Explicating the “Charm premium” in Second Homes: The Case of Algarve
Giannoukos Ioannis, Koutsobinas Theodore

Abstract
The objective of the present paper is to explicate the distribution network of second home ownership in Algarve (Southern Portugal) and to explore the factors, which cause a high price premium, known as “charm premium”, for properties in high-profile regions, such as Vale do Lobo. A template analysis of online newspaper editions, framed and interpreted for a period of more than fifteen years, is utilized as the basis for methodological evaluation facilitated by the expanse of preliminary archival data and their qualitative processing. The analysis is applied in two stages: The first stage includes the study of Algarve as a travel destination and reveals the significance of tourism attractions, the place branding towards the development of a top retirement destination, the importance of quality golf/luxury resort infrastructure and the presence of high-status superstars and celebrities for that branding. The second stage of template analysis focuses also on locations with the highest second-home prices and rents, known as the “Golden Triangle”. Our findings demonstrate the influential function of superstars‟ managers on the decision of superstars and celebrities to invest on second-home property, revealing path dependencies and a twofold chain, comprising of the “attraction” and the “network” chains that explain their social status behavior.

Full Text: PDF     DOI: 10.15640/jthm.v8n2a11