Is the Sea always Bluer? A Valuation of the Cyprus Sea View.

Outside views are one of many hotels attributes which room rates are usually affected from. Hotels located along a coastline charge a different price for a room with a view than for a room without it. The current study investigates the value of the sea view in the Mediterranean island of Cyprus using a hedonic pricing model. Data are collected from a private tourist agency and linear regressions are used to estimate the model coefficients. Room rates ar found to be higher around 15% for a room with a sea view than one with no such specification. Only one of the beachfront districts of the island indicates a higher sea view value, the one with the highest cost of living. No significant difference is found between hotels with different star ratings, lending support that the sea view is equally valued in different hotel categories. [ABSTRACT FROM AUTHOR]