IDEAS home Printed from https://ideas.repec.org/a/taf/rcitxx/v27y2024i8p1185-1207.html
   My bibliography  Save this article

Tourism and tax revenue: evidence from stay-over tourists in the Eastern Caribbean

Author

Listed:
  • Preeya Mohan
  • Eric Strobl

Abstract

This paper investigated the impact of international stay-over arrivals on tax revenue for tourism-dependent Small Island Developing States (SIDS). To this end, we constructed a unique monthly panel data set of stay-over arrivals and tax revenue and its various components for the period 2002–2018 for Eastern Caribbean SIDS. A Bartik-type instrumental variables estimator exploiting differences in the exposure to and the extent of shocks in the origin markets was used to quantify the impact of stay-over arrivals on tax revenue and its different sources. Our results showed a large cumulative positive elasticity to tourism arrivals of 26.98% for total revenue, 26.86% for goods and services revenue, 23.62% for international trade and transactions revenue, 20.5% for income and profits revenue and 5.54% for property revenue. The findings demonstrate the region’s strong dependence on tourism for government income.

Suggested Citation

  • Preeya Mohan & Eric Strobl, 2024. "Tourism and tax revenue: evidence from stay-over tourists in the Eastern Caribbean," Current Issues in Tourism, Taylor & Francis Journals, vol. 27(8), pages 1185-1207, April.
    • Handle: RePEc:taf:rcitxx:v:27:y:2024:i:8:p:1185-1207
    DOI: 10.1080/13683500.2023.2202307
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13683500.2023.2202307
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13683500.2023.2202307?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    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:taf:rcitxx:v:27:y:2024:i:8:p:1185-1207. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rcit .

    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.