Public economics, public choice and tourism

Through a review of existing research, this chapter explores the interconnected relationships between economics, tourism, public policy and society at large. As tourism cannot exist in a vacuum, engagement of relevant stakeholders is a frequently employed means of ensuring impacted parties are part of the tourism planning process. Public choice theory explores the effect of public policy decisions on tourism development and economic growth, as well as the social well-being of the local residents. Through government intervention, the public choice model seeks to mitigate some of the negative externalities of tourism, such as crime, corruption, environmental impacts; while supporting positive impacts such as workforce development, increased quality of life and the protection of public goods, both globally and nationally. At the same time, this model is challenged with the ever-evolving and strengthening asymmetric influences on decision-making bodies, such as through advocacy groups or industry groups with a specific agenda. This analysis provides an overview of these challenges and potential benefits of the public choice model; as well as a brief review of the COVID recovery, the tourism sector and public policy.