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Tourism, economic welfare and efficient pricing


  • Harry R. Clarke
  • Yew-Kwang Ng


A theoretical framework based on economics is provided for assessing tourism's costs and benefits. Suppose that resources utilized by tourists are owned by residents and, as marketed goods or services, are priced efficiently. Then increased tourism promotes net average (i.e., Pareto) economic gains for residents even in the face of such things as increased environmental costs and increased charges. Therefore, under these circumstances, there is no case for entry taxes or qualitative restrictions on tourism to deal with environmental issues. However, such taxes can be justified on rent-seeking grounds that are discussed in this paper.

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  • Harry R. Clarke & Yew-Kwang Ng, 1993. "Tourism, economic welfare and efficient pricing," Monash Economics Working Papers archive-18, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:archive-18

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    References listed on IDEAS

    1. Douglas Davis & Edward Millner & Robert Reilly, 2005. "Subsidy Schemes and Charitable Contributions: A Closer Look," Experimental Economics, Springer;Economic Science Association, vol. 8(2), pages 85-106, June.
    2. Catherine Eckel, 2005. "Subsidizing Charitable Contributions: A Field Test Comparing Matching and Rebate Subsidies," Working Papers 2098, The Field Experiments Website.
    3. Eckel, Catherine C. & Grossman, Philip J., 2003. "Rebate versus matching: does how we subsidize charitable contributions matter?," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 681-701, March.
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    Cited by:

    1. Tisdell, Clem & Wilson, Clevo, 2002. "World Heritage Listing of Australian Natural Sites: Tourism Stimulus and Its Economic Value," Economic Analysis and Policy, Elsevier, vol. 32(2), pages 27-49, June Spec.
    2. Xavier Labandeira & Alberto Gago & Fidel Picos & Miguel Rodríguez, 2006. "Taxing Tourism in Spain: Results and Recommendations," Working Papers 2006.40, Fondazione Eni Enrico Mattei.
    3. Clarke, Harry R. & Ng, Yew-Kwang, 1995. "Non-traded goods and the welfare gains from tourism: comment," International Review of Economics & Finance, Elsevier, vol. 4(3), pages 305-309.
    4. repec:eee:touman:v:31:y:2010:i:1:p:125-135 is not listed on IDEAS

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