The Cost—Benefit Model as Applied to Tourism Development in the State of South Carolina, USA

Frank Hefner, John C. Crotts and Julie Flowers
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Frank Hefner: Associate Professor, Department of Economics and Finance, College of Charleston, Charleston, SC 29424, USA
John C. Crotts: Professor and Director, Hospitality and Tourism Management, Department of Marketing and Management, College of Charleston, Charleston, SC 29424, USA
Julie Flowers: Research Manager, South Carolina Department of Parks, Recreation and Tourism, 1205 Pendleton Street, Columbia, SC 29201, USA

Tourism Economics, 2001, vol. 7, issue 2, 163-175

Abstract: Local governments in the USA offer a variety of economic incentives to attract industry. In 1995, the US state of South Carolina mandated that a cost–benefit analysis be conducted before one type of incentive, the ‘fee-in-lieu of property tax’, was offered. This paper reviews and analyses the South Carolina model. The authors then develop a modified model that incorporates the features which are unique to the tourism industry. They conclude that the method described in the paper is readily transferable to any state or local government and recommend that these governments develop a similar approach using their specific costs and benefits in order to make rational decisions when offering incentives.

Keywords: cost–benefit analysis; tax incentives; economic development (search for similar items in EconPapers)
Date: 2001
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:7:y:2001:i:2:p:163-175

DOI: 10.5367/000000001101297793

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