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The impact of all-inclusive offerings in a tourism destination’s competitiveness

Author

Listed:
  • Calveras, Aleix *,

    (Universitat de les Illes Balears)

  • De Freitas, Jenny

    (Universitat de les Illes Balears)

Abstract

This study analyzes the impact of all-inclusive offerings on a destination's competitiveness. When the rise in all-inclusive offerings causes a negative externality on complementary services, it creates a market-size effect. This results in an excessive supply of all-inclusive offerings in the market. Imposing different taxes on all-inclusive and non-all-inclusive offerings is more effective than a cap on the supply of all-inclusive offerings. Taxes can implement the optimal allocation. We expect the market-size effect to be harmful to competitiveness in mature destinations.

Suggested Citation

  • Calveras, Aleix *, & De Freitas, Jenny, 2025. "The impact of all-inclusive offerings in a tourism destination’s competitiveness," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 62, pages 103-118.
    • Handle: RePEc:ris:invreg:0570
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    More about this item

    Keywords

    All-inclusive; competitiveness; hotel industry; externalities; regulation;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • Z30 - Other Special Topics - - Tourism Economics - - - General

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