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

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  • Sheng, Li

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.

Suggested Citation

  • Sheng, Li, 2011. "Taxing tourism and subsidizing non-tourism: A welfare-enhancing solution to “Dutch disease”?," Tourism Management, Elsevier, vol. 32(5), pages 1223-1228.
    • Handle: RePEc:eee:touman:v:32:y:2011:i:5:p:1223-1228
    DOI: 10.1016/j.tourman.2010.09.009
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    Cited by:

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    2. Bernini, Cristina & Pellegrini, Guido, 2013. "Is subsidising tourism firms an effective use of public funds?," Tourism Management, Elsevier, vol. 35(C), pages 156-167.

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