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COORDINATION AND GROWTH IN TOURISM: When self-interest does not suffice

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  • Navarro-Sánchez, Moisés
  • Sintes, Federico Inchausti

Abstract

Private goods and common goods coexist in tourism. However, the nature of the latter means that self-interest alone cannot guarantee their optimal provision. Hence, coordination emerges as a necessary strategy to reconcile both. The analysis shows that, with coordination, a virtuous circle emerges between common goods (public incentive) and tourism (private incentive), becoming more intense and important with tourism-driven economic development. Coordination also allows a transition toward high-quality tourism (crowding out low-quality tourism), which is necessary to compensate for the lack of productivity in this sector. Without coordination, there is room for a tourism development trap or economic growth reversal. Finally, we identify a “Quality Paradox”: quality improvements might jeopardize economic growth by triggering a price hike, reducing overall competitiveness.

Suggested Citation

  • Navarro-Sánchez, Moisés & Sintes, Federico Inchausti, 2026. "COORDINATION AND GROWTH IN TOURISM: When self-interest does not suffice," SocArXiv sfr37_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:sfr37_v1
    DOI: 10.31219/osf.io/sfr37_v1
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