The impact of all-inclusive offerings in a tourism destination’s competitiveness

Aleix *, Calveras () and Jenny De Freitas ()
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Aleix *, Calveras: Universitat de les Illes Balears
Jenny De Freitas: Universitat de les Illes Balears

INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, 2025, issue 62, 103-118

Abstract: This study analyzes the impact of all-inclusive offerings on a destination's competitiveness. When the rise in all-inclusive offerings causes a negative externality on complementary services, it creates a market-size effect. This results in an excessive supply of all-inclusive offerings in the market. Imposing different taxes on all-inclusive and non-all-inclusive offerings is more effective than a cap on the supply of all-inclusive offerings. Taxes can implement the optimal allocation. We expect the market-size effect to be harmful to competitiveness in mature destinations.

Keywords: All-inclusive; competitiveness; hotel industry; externalities; regulation (search for similar items in EconPapers)
JEL-codes: D62 L10 Z30 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ris:invreg:0570

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