Taxing Tourism in Spain: Results and Recommendations
AbstractThis paper analyses the foundations, possible applications and the effects of tourism taxation in Spain. The article begins with an analysis of the economic and environmental reasons for taxing tourism, which would seem to call for taxes based on the principle of benefit, for either revenue or corrective purposes. Subsequently, we describe the praxis of tourism taxation in Spain, with special mention being given to the now repealed Balearic ecotasa. Finally, the effects of two fiscal modifications with revenue or corrective objectives are studied through the use of an applied general equilibrium model developed for the Spanish economy. We thus see that a 10% tax on lodging brings in significant public receipts, increases social welfare and has no effect on the environment. On the other hand, an increase of VAT rates on tourism-related sectors could have the same effects on tourist expenditure but at the costs of greater impact for Spain’s economy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2006.40.
Date of creation: Feb 2006
Date of revision:
Taxes; Tourism; Environment; Spain;
Other versions of this item:
- Alberto Gago & Xavier Labandeira & Fidel Picos & Miguel Rodríguez, 2006. "Taxing Tourism in Spain: Results and Recommendations," DEA Working Papers 16, Universitat de les Illes Balears, Departament d'Economía Aplicada.
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-29 (All new papers)
- NEP-PBE-2006-04-29 (Public Economics)
- NEP-PUB-2006-04-29 (Public Finance)
- NEP-TUR-2006-04-29 (Tourism Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- José M. Labeaga & Miguel Rodríguez & Xavier Labandeira, 2006.
"A Macro and Microeconomic Integrated Approach to Assessing the Effects of Public Policies,"
- Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2006. "A Macro and Microeconomic Integrated Approach to Assessing the Effects of Public Policies," Working Papers 22, ECINEQ, Society for the Study of Economic Inequality.
- Alberto Gago & Xavier Labandeira & Fidel Picos & Miguel Rodríguez, 2006. "Environmental Taxes in Spain: A Missed Opportunity," International Center for Public Policy (formerly the International Studies Program) Working Paper Series, at AYSPS, GSU paper0609, International Center for Public Policy (formerly the International Studies Program), Andrew Young School of Policy Studies, Georgia State University.
- Harry R. Clarke & Yew-Kwang Ng, 1993. "Tourism, economic welfare and efficient pricing," Monash Economics Working Papers archive-18, Monash University, Department of Economics.
- Michael McAleer & Riaz Shareef & Bernardo da Veiga, 2005. "Risk Management of Daily Tourist Tax Revenues for the Maldives," Working Papers 2005.137, Fondazione Eni Enrico Mattei.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (barbara racah).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.