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Dutch Disease in Tourism Economies. Evidence from Spain


  • Javier Capó Parrilla
  • Antoni Riera Font
  • Jaume Rosselló Nadal


Considerable attention has been given in economic literature to Dutch disease, with symptoms of the disease being extensively described in many different contexts. Nevertheless, none of the studies has focused on the tourist industry as a source of increased wealth through the exploitation of natural resources, such as beaches, natural areas and wild fauna, typical of mass models of tourism development. By examining two different Spanish regions, this paper provides evidence that the Balearics and the Canary Islands, whose economies are heavily oriented toward tourism, both show signs of Dutch disease and that, as a result, their economic growth might be compromised in coming years.

Suggested Citation

  • Javier Capó Parrilla & Antoni Riera Font & Jaume Rosselló Nadal, 2005. "Dutch Disease in Tourism Economies. Evidence from Spain," CRE Working Papers (Documents de treball del CRE) 2005/01, Centre de Recerca Econòmica (UIB ·"Sa Nostra"), revised Jan 2005.
  • Handle: RePEc:pdm:wpaper:2005/01

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    Cited by:

    1. Robertico Croes, 2014. "The Role of Tourism in Poverty Reduction: An Empirical Assessment," Tourism Economics, , vol. 20(2), pages 207-226, April.
    2. Tanja Broz & Dinko Dubravcic, 2011. "The Dutch Disease in Unwonted Places. Why has Croatia been Infected while Slovenia Remains in Good Health?," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 9(1), pages 47-66.
    3. JG. Brida & M. Pulina, 2010. "A literature review on the tourism-led-growth hypothesis," Working Paper CRENoS 201017, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    4. Nesrin Tuncay & Ceyhun Can Özcan, 2020. "The effect of Dutch disease in the tourism sector: the case of Mediterranean countries," Tourism and Hospitality Management, University of Rijeka, Faculty of Tourism and Hospitality Management, vol. 26(1), pages 97-114, June.
    5. Brida, Juan Gabriel & Pereyra, Juan Sebastián & Such, María Jesús & Pulina, Manuela, 2011. "Causalidad entre turismo y crecimiento económico de largo plazo: una revisión crítica de la literatura econométrica [Causality between tourism and long-term economic growth: a critical review of th," MPRA Paper 37332, University Library of Munich, Germany, revised 2011.
    6. Tan Yigitcanlar & Jamile Sabatini-Marques & Cibele Lorenzi & Nathalia Bernardinetti & Tatiana Schreiner & Ana Fachinelli & Tatiana Wittmann, 2018. "Towards Smart Florianópolis: What Does It Take to Transform a Tourist Island into an Innovation Capital?," Energies, MDPI, vol. 11(12), pages 1-32, November.
    7. Francesco Macheda & Roberto Nadalini, 2019. "The Danger of a “Geyser Disease” Effect: Structural Fragility of the Tourism-Led Recovery in Iceland," Working Papers 0038, ASTRIL - Associazione Studi e Ricerche Interdisciplinari sul Lavoro.
    8. Jaume Garau Taberner & Carles Manera, 2006. "The Recent Evolution and Impact of Tourism in the Mediterranean: The Case of Island Regions, 1990-2002," Working Papers 2006.108, Fondazione Eni Enrico Mattei.
    9. Brida, Juan Gabriel & London, Silvia & Rojas, Mara, 2012. "El turismo como motor de crecimiento económico: impacto de las preferencias intertemporales de los agentes [The tourism as economic growth engine: the impact of the agents time preferences]," MPRA Paper 36607, University Library of Munich, Germany.
    10. Robertico Croes & Manuel A. Rivera, 2017. "Tourism’s potential to benefit the poor," Tourism Economics, , vol. 23(1), pages 29-48, February.
    11. Mesagan, Ekundayo & Unah, Aboje & Idowu, Olamide & Alamu, Abidemi, 2019. "Oil Resource Abundance in Nigeria and Iran: Contrapuntal Effect on Social and Economic Welfare," BizEcons Quarterly, Strides Educational Foundation, vol. 4, pages 3-22.
    12. José María Martín Martín & Jose Manuel Guaita Martínez & José Antonio Salinas Fernández, 2018. "An Analysis of the Factors behind the Citizen’s Attitude of Rejection towards Tourism in a Context of Overtourism and Economic Dependence on This Activity," Sustainability, MDPI, vol. 10(8), pages 1-18, August.
    13. David Bojanic, 2013. "An Analysis Of The Reliance Of Small Island Developing States On Tourism," Working Papers 0163mkt, College of Business, University of Texas at San Antonio.
    14. Francesco Macheda & Roberto Nadalini, 2020. "The Danger of a “Geyser Disease†Effect: Structural Fragility of the Tourism-Led Recovery in Iceland," Review of Radical Political Economics, Union for Radical Political Economics, vol. 52(1), pages 50-76, March.


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