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ASEAN-U.S. Trade in Information-Intensive Services: Policy Issues

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  • Marcellus S. Snow

    (Department of Economics, University of Hawaii at Manoa)

Abstract

We estimate a more complete model of the demand for and supply of hotel rooms and explore its implications for the exportability of a hotel room tax. The modelling of the demand for travel to Hawaii is expanded, taking into account not only the effect of a hotel room tax on the demand for hotel rooms by visitors subsequent to their arrival, but also its impact on the decision to visit Hawaii. Our results suggest that our earlier estimates of the elasticity of demand (in absolute terms) and supply for hotel rooms to be underestimated (1.0 vs. 1.5) and (2.0 vs. infinity), respectively. Taken together, the results suggest that hotel room taxes are fully exportable to tourists.

Suggested Citation

  • Marcellus S. Snow, 1988. "ASEAN-U.S. Trade in Information-Intensive Services: Policy Issues," Working Papers 198810, University of Hawaii at Manoa, Department of Economics.
  • Handle: RePEc:hai:wpaper:198810
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    File URL: http://www.economics.hawaii.edu/research/workingpapers/88-98/WP_88-10.pdf
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