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Tourism, economic welfare and efficient pricing

Author

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  • Harry R. Clarke
  • Yew-Kwang Ng

Abstract

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.

Suggested Citation

  • 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
    DOI: 10.1016/0160-7383(93)90087-J
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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. Alfano, Vincenzo & De Simone, Elina & D’Uva, Marcella & Gaeta, Giuseppe Lucio, 2022. "Exploring motivations behind the introduction of tourist accommodation taxes: The case of the Marche region in Italy," Land Use Policy, Elsevier, vol. 113(C).
    3. Gago, Alberto & Labandeira, Xavier & Picos, Fidel & Rodriguez, Miguel, 2006. "Taxing Tourism in Spain: Results and Recommendations," Climate Change Modelling and Policy Working Papers 12023, Fondazione Eni Enrico Mattei (FEEM).
    4. Julien Xavier Daubanes, 2017. "The Sustainable Management of a Productive Natural Capital," IFRO Working Paper 2017/08, University of Copenhagen, Department of Food and Resource Economics.
    5. M.ª Lurdes Varela, 2011. "Taxation of tourism activities: evidence from Portugal," EcoMod2011 3048, EcoMod.
    6. 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.
    7. Logar, Ivana, 2010. "Sustainable tourism management in Crikvenica, Croatia: An assessment of policy instruments," Tourism Management, Elsevier, vol. 31(1), pages 125-135.
    8. Per-Olov Johansson & Ginés de Rus, 2015. "On the Treatment of Foreigners and Foreign-Owned Firms in Cost–Benefit Analysis," Working Papers 2015-13, FEDEA.
    9. Gurel Cetin & Zaid Alrawadieh & Mithat Zeki Dincer & Fusun Istanbullu Dincer & Dimitri Ioannides, 2017. "Willingness to Pay for Tourist Tax in Destinations: Empirical Evidence from Istanbul," Economies, MDPI, vol. 5(2), pages 1-15, June.
    10. Yana Doneva, 2021. "Tourist Tax as a Source of Income," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 10(3), pages 127-135, December.
    11. Charles Swenson, 2022. "Empirical Evidence on the Economic Impacts of Hotel Taxes," Economic Development Quarterly, , vol. 36(1), pages 33-42, February.

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