Taxing tourism and subsidizing non-tourism: A welfare-enhancing solution to “Dutch disease”?

Li Sheng

Tourism Management, 2011, vol. 32, issue 5, 1223-1228

Abstract: Using a combined analysis of a general equilibrium and a partial equilibrium, this study models the impacts of a combined policy tool based on taxing tourism and subsidizing non-tourism in a tourism-dependent destination. The results suggest that such a policy tool, while widely discussed in economics literature, may not be suitable for a tourism destination, as it might have adverse effects on local welfare.

Keywords: General equilibrium; Partial equilibrium; Taxes; Subsidies; Welfare (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:touman:v:32:y:2011:i:5:p:1223-1228

DOI: 10.1016/j.tourman.2010.09.009

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