Tourism and the economy: evidence from Brazil

Thiago Silva (), Pedro Vicente da Silva Neto and Benjamin Tabak

Current Issues in Tourism, 2023, vol. 26, issue 6, 851-862

Abstract: We explore a discontinuity in the incentives created by the Brazilian Tourism Regionalization Program. We employ a research discontinuity design, focussing on municipalities in the transitions between two classes. We observe significant effects of the Program in tourist cities, including an increase in the value-added of services and per capita GDP. Additionally, we find that the value-added in industrial activities increases, implying a spillover effect from the improvement in local tourism conditions for other economic activities. Our article documents how tourism strategies can have a beneficial effect on a city's entire economic structure.

Date: 2023
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DOI: 10.1080/13683500.2022.2048804

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