The conflict between residents and tourists: on the variety-shifting effect of tourism growth

Takaaki Takahashi ()
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Takaaki Takahashi: The University of Tokyo

The Japanese Economic Review, 2024, vol. 75, issue 1, No 5, 145 pages

Abstract: Abstract This study examines the impacts of a rise in international tourism on the welfare of residents. We construct a simple model in which a home country accommodates tourists from a foreign country. We pay special attention to the fact that, in addition to the positive effect of raising wages, tourism growth has two negative effects. First, it replaces the production of residents’ consumption varieties with that of tourists. Second, it raises output prices through the increase in input prices. Our model shows that growing tourism can hurt a worker in the home country when the two negative effects (variety-shifting and price effects) outweigh the positive effect (wage effect).

Keywords: Tourism growth; Tourism promotion policy; Tourist costs; Variety-shifting effect (search for similar items in EconPapers)
JEL-codes: F1 R1 Z3 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s42973-021-00108-5

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