Effects of COVID-19 on Variations of Taxpayers in Tourism-Reliant Regions: The Case of the Mexican Caribbean

Oliver Cruz-Milan and Sergio Lagunas-Puls
Additional contact information
Oliver Cruz-Milan: Department of Management and Marketing, College of Business, Texas A&M University-Corpus Christi, 6300 Ocean Drive, Corpus Christi, TX 78412, USA
Sergio Lagunas-Puls: Departamento de Economía y Negocios, Universidad del Caribe, Fraccionamiento Tabachines, Cancún 77528, Quintana Roo, Mexico

JRFM, 2021, vol. 14, issue 12, 1-23

Abstract: Given the tourism industry’s risk and vulnerability to pandemics and the need to better understand the impacts on tourism destinations, this research assesses the effect of the COVID-19 outbreak on the variation of taxpayer units in the Mexican Caribbean region, which includes some of the major sun-and-sand beach destinations in Latin America. Using monthly data of registered taxpayer entities at the state and national levels as the analysis variable, probability distributions and definite integrals are employed to determine variations of the year following the lockdown, compared with previous years’ data. Results indicate that despite the government’s measures to restrict businesses’ operations and a reduction in tourism activities, registered taxpayers at the regional level did not decrease for most of 2020. Further, as business activities and tourism recovered, taxpayer units increased at the end of 2020 and beginning of 2021. Surprisingly, such a pattern was not observed at the national level, which yielded no statistically significant variations. A discussion of factors influencing the resilience of the tourism region in the study (e.g., outbound markets’ geographic proximity, absence of travel restrictions, closure of competing destinations) and implications for public finances are presented.

Keywords: COVID-19; taxpayer entities; economic risk; tourism recovery; fiscal revenues; crisis; resilience; tourism destinations; Mexico; Quintana Roo; Mexican Caribbean (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/1911-8074/14/12/578/pdf (application/pdf)
https://www.mdpi.com/1911-8074/14/12/578/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:14:y:2021:i:12:p:578-:d:693423

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().