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Tourism and the economy: evidence from Brazil

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  • Thiago Christiano Silva
  • Pedro Vicente da Silva Neto
  • Benjamin Miranda Tabak

Abstract

We explore a discontinuity in the incentives created by the Brazilian Tourism Regionalization Program. We employ a research discontinuity design, focussing on municipalities in the transitions between two classes. We observe significant effects of the Program in tourist cities, including an increase in the value-added of services and per capita GDP. Additionally, we find that the value-added in industrial activities increases, implying a spillover effect from the improvement in local tourism conditions for other economic activities. Our article documents how tourism strategies can have a beneficial effect on a city's entire economic structure.

Suggested Citation

  • Thiago Christiano Silva & Pedro Vicente da Silva Neto & Benjamin Miranda Tabak, 2023. "Tourism and the economy: evidence from Brazil," Current Issues in Tourism, Taylor & Francis Journals, vol. 26(6), pages 851-862, March.
    • Handle: RePEc:taf:rcitxx:v:26:y:2023:i:6:p:851-862
    DOI: 10.1080/13683500.2022.2048804
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