IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v14y2021i12p578-d693423.html
   My bibliography  Save this article

Effects of COVID-19 on Variations of Taxpayers in Tourism-Reliant Regions: The Case of the Mexican Caribbean

Author

Listed:
  • Oliver Cruz-Milan

    (Department of Management and Marketing, College of Business, Texas A&M University-Corpus Christi, 6300 Ocean Drive, Corpus Christi, TX 78412, USA)

  • Sergio Lagunas-Puls

    (Departamento de Economía y Negocios, Universidad del Caribe, Fraccionamiento Tabachines, Cancún 77528, Quintana Roo, Mexico)

Abstract

Given the tourism industry’s risk and vulnerability to pandemics and the need to better understand the impacts on tourism destinations, this research assesses the effect of the COVID-19 outbreak on the variation of taxpayer units in the Mexican Caribbean region, which includes some of the major sun-and-sand beach destinations in Latin America. Using monthly data of registered taxpayer entities at the state and national levels as the analysis variable, probability distributions and definite integrals are employed to determine variations of the year following the lockdown, compared with previous years’ data. Results indicate that despite the government’s measures to restrict businesses’ operations and a reduction in tourism activities, registered taxpayers at the regional level did not decrease for most of 2020. Further, as business activities and tourism recovered, taxpayer units increased at the end of 2020 and beginning of 2021. Surprisingly, such a pattern was not observed at the national level, which yielded no statistically significant variations. A discussion of factors influencing the resilience of the tourism region in the study (e.g., outbound markets’ geographic proximity, absence of travel restrictions, closure of competing destinations) and implications for public finances are presented.

Suggested Citation

  • Oliver Cruz-Milan & Sergio Lagunas-Puls, 2021. "Effects of COVID-19 on Variations of Taxpayers in Tourism-Reliant Regions: The Case of the Mexican Caribbean," JRFM, MDPI, vol. 14(12), pages 1-23, December.
    • Handle: RePEc:gam:jjrfmx:v:14:y:2021:i:12:p:578-:d:693423
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/14/12/578/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/14/12/578/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrey Feuerverger, 2016. "On Goodness of Fit for Operational Risk," International Statistical Review, International Statistical Institute, vol. 84(3), pages 434-455, December.
    2. Jeffrey Clemens & Stan Veuger, 2020. "Implications of the COVID-19 Pandemic for State Government Tax Revenues," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(3), pages 619-644, September.
    3. Tadayuki Hara, 2012. "Introduction to Tourism Satellite Accounts," Chapters, in: Murat Kasimoglu (ed.), Strategies for Tourism Industry - Micro and Macro Perspectives, IntechOpen.
    4. Suhejla Hoti & Michael McAleer & Riaz Shareef, 2005. "Modelling Country Risk and Uncertainty in Small Island Tourism Economies," Tourism Economics, , vol. 11(2), pages 159-183, June.
    5. Jorge O. Moreno & Cecilia Y. Cuellar, 2021. "Informality, Gender Employment Gap, and COVID-19 in Mexico: Identifying Persistence and Dynamic Structural Effects," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(3), pages 1-25, Julio - S.
    6. Bruhn, Miriam, 2013. "A tale of two species: Revisiting the effect of registration reform on informal business owners in Mexico," Journal of Development Economics, Elsevier, vol. 103(C), pages 275-283.
    7. Parvez, Mahbub, 2006. "Time Value Of Money: Application And Rationality- An Approach Using Differential Equations And Definite Integrals," MPRA Paper 10794, University Library of Munich, Germany.
    8. Benjamin Faber & Cecile Gaubert, 2019. "Tourism and Economic Development: Evidence from Mexico's Coastline," American Economic Review, American Economic Association, vol. 109(6), pages 2245-2293, June.
    9. Clarke, George R.G. & Cull, Robert & Kisunko, Gregory, 2012. "External finance and firm survival in the aftermath of the crisis: Evidence from Eastern Europe and Central Asia," Journal of Comparative Economics, Elsevier, vol. 40(3), pages 372-392.
    10. Antonio Kido-Cruz & María Teresa Kido-Cruz, 2021. "Initial Assessment of the Impact of the SARS-CoV-19 on Tourism in Mexico," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 16(3), pages 1-23, Julio - S.
    11. repec:aei:rpaper:1008570714 is not listed on IDEAS
    12. Raymundo M. Campos-Vazquez & Gerardo Esquivel, 2021. "Consumption and geographic mobility in pandemic times. Evidence from Mexico," Review of Economics of the Household, Springer, vol. 19(2), pages 353-371, June.
    13. Larry Dwyer & Peter Forsyth (ed.), 2006. "International Handbook on the Economics of Tourism," Books, Edward Elgar Publishing, number 2827, March.
    14. Gopal Das & Shailendra Pratap Jain & Durairaj Maheswaran & Rebecca J. Slotegraaf & Raji Srinivasan, 2021. "Pandemics and marketing: insights, impacts, and research opportunities," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 835-854, September.
    15. Sabatino, Michele, 2016. "Economic crisis and resilience: Resilient capacity and competitiveness of the enterprises," Journal of Business Research, Elsevier, vol. 69(5), pages 1924-1927.
    16. Bird, Richard M., 1992. "Taxing tourism in developing countries," World Development, Elsevier, vol. 20(8), pages 1145-1158, August.
    17. -, 2020. "Report on the economic impact of coronavirus disease (COVID-19) on Latin America and the Caribbean," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 45603 edited by Cepal, September.
    18. Dahles, Heidi & Susilowati, Titi Prabawa, 2015. "Business resilience in times of growth and crisis," Annals of Tourism Research, Elsevier, vol. 51(C), pages 34-50.
    19. Cefis, Elena & Bartoloni, Eleonora & Bonati, Marco, 2020. "Show me how to live: Firms' financial conditions and innovation during the crisis," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 63-81.
    20. Adriana Csikosova & Katarina Culkova & Erik Weiss & Maria Janoskova, 2021. "Evaluation of Market with Accommodation Facilities Considering Risk Influence—Case Study Slovakia," JRFM, MDPI, vol. 14(5), pages 1-17, May.
    21. Subhash Bagui & K. L. Mehra, 2017. "Convergence of Known Distributions to Limiting Normal or Non-normal Distributions: An Elementary Ratio Technique," The American Statistician, Taylor & Francis Journals, vol. 71(3), pages 265-271, July.
    22. Fotiadis, Anestis & Polyzos, Stathis & Huan, Tzung-Cheng T.C., 2021. "The good, the bad and the ugly on COVID-19 tourism recovery," Annals of Tourism Research, Elsevier, vol. 87(C).
    23. Walsh, Grace S. & Cunningham, James A., 2016. "Business Failure and Entrepreneurship: Emergence, Evolution and Future Research," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 12(3), pages 163-285, July.
    24. Pham, Tien Duc & Dwyer, Larry & Su, Jen-Je & Ngo, Tramy, 2021. "COVID-19 impacts of inbound tourism on Australian economy," Annals of Tourism Research, Elsevier, vol. 88(C).
    25. Mara Manente & Michele Zanette, 2010. "Macroeconomic Effects Of A Vat Reduction In The Italian Hotels & Restaurants Industry," Economic Systems Research, Taylor & Francis Journals, vol. 22(4), pages 407-425.
    26. Raki, Amir & Nayer, Daud & Nazifi, Amin & Alexander, Matthew & Seyfi, Siamak, 2021. "Tourism recovery strategies during major crises: The role of proactivity," Annals of Tourism Research, Elsevier, vol. 90(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oliver Cruz-Milán, 2023. "Loyalty in the time of COVID-19: A review of the literature in tourism destination settings," Post-Print hal-04014427, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Laurent Corthay & Jan Loeprick, 2010. "Taxing Tourism in Developing Countries : Principles for Improving the Investment Climate Through Simple, Fair, and Transparent Taxation," World Bank Publications - Reports 10485, The World Bank Group.
    2. Xi Wu & Adam Blake, 2023. "The Impact of the COVID-19 Crisis on Air Travel Demand: Some Evidence From China," SAGE Open, , vol. 13(1), pages 21582440231, January.
    3. Hu, Yang & Lang, Chunlin & Corbet, Shaen & Wang, Junchuan, 2024. "The impact of COVID-19 on the volatility connectedness of the Chinese tourism sector," Research in International Business and Finance, Elsevier, vol. 68(C).
    4. Martin Henseler & Hélène Maisonnave & Asiya Maskaeva, 2021. "Economic impacts of COVID-19 on the tourism sector in Tanzania," Working Papers hal-03501722, HAL.
    5. Yang, Yang & Zhang, Carol X. & Rickly, Jillian M., 2021. "A review of early COVID-19 research in tourism: Launching the Annals of Tourism Research's Curated Collection on coronavirus and tourism1," Annals of Tourism Research, Elsevier, vol. 91(C).
    6. Yu, Ling & Zhao, Pengjun & Tang, Junqing & Pang, Liang, 2023. "Changes in tourist mobility after COVID-19 outbreaks," Annals of Tourism Research, Elsevier, vol. 98(C).
    7. Corbet, Shaen & Hou, Yang & Hu, Yang & Oxley, Les, 2022. "Did COVID-19 tourism sector supports alleviate investor fear?," Annals of Tourism Research, Elsevier, vol. 95(C).
    8. Zhu, Oscar Yuheng & Dolnicar, Sara, 2022. "Can disasters improve the tourism industry? The role of normative, cognitive and relational expectations in shaping industry response to disaster-induced disruption," Annals of Tourism Research, Elsevier, vol. 93(C).
    9. Fangming Qin & Gezhi Chen, 2022. "Vulnerability of Tourist Cities’ Economic Systems Amid the COVID-19 Pandemic: System Characteristics and Formation Mechanisms—A Case Study of 46 Major Tourist Cities in China," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    10. Boto-García, David & Mayor, Matías, 2022. "Domestic tourism and the resilience of hotel demand," Annals of Tourism Research, Elsevier, vol. 93(C).
    11. Niccolò Comerio & Fernanda Strozzi, 2019. "Tourism and its economic impact: A literature review using bibliometric tools," Tourism Economics, , vol. 25(1), pages 109-131, February.
    12. Enghin Atalay & Ali Hortacsu & Mustafa Runyun & Chad Syverson & Mehmet Fatih Ulu, 2023. "Micro- and Macroeconomic Impacts of a Place-Based Industrial Policy," Working Papers 23-12, Federal Reserve Bank of Philadelphia.
    13. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668, March.
    14. Matylda Awedyk & Agnieszka Niezgoda, 2018. "Resilience planning as an opportunity for future sustainable development in tourism," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 28(2), pages 23-40.
    15. Oladunjoye, Opeyemi Nathaniel & Areyemi, Victor Olaife, 2021. "Tourism, Globalization and Economic Growth in Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 9(2), April.
    16. Jung, Haeil & Kim, Jun Hyung & Hong, Gihyeon, 2023. "Impacts of the COVID-19 crisis on single-person households in South Korea," Journal of Asian Economics, Elsevier, vol. 84(C).
    17. José Luis Massón-Guerra & Pedro Ortín-Ángel, 2019. "Entrepreneurship capital spillovers at the local level," Small Business Economics, Springer, vol. 52(1), pages 175-191, January.
    18. Florencia Pedroni, 2023. "Firm informality during the COVID-19 crisis in Argentina: perception of commercial entrepreneurs and public accountants," Estudios Gerenciales, Universidad Icesi, vol. 39(166), pages 24-36, March.
    19. Rrahman Sylejmani, 2021. "Youth Categories and Drugs in Kosovo (2001-2014)," European Journal of Multidisciplinary Studies Articles, Revistia Research and Publishing, vol. 1, January -.
    20. E. M. Ekanayake & Mihalis Halkides & John R. Ledgerwood, 2012. "Inbound International Tourism To The United States: A Panel Data Analysis," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 5(3), pages 15-27.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:14:y:2021:i:12:p:578-:d:693423. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.