Tourism taxation and environmental quality in a model with vertical differantiation
Part of : Tourismos : an international multidiciplinary journal of tourism ; Vol.4, No.1, 2009, pages 44-62
Issue:
Pages:
44-62
Section Title:
Research papers
Author:
Abstract:
The environmental quality of destination has become a tool that hotels have tohold the tourism demand. In this paper we are going to present a model of verticaldifferentiation in the accommodation industry, where differentiation is associatedwith quality. Additionally, we assume the existence of a lump sum tax in theaccommodation industry. Two are the main results which will be proved in thisarticle; first, if the tourist's willingness to pay for quality increases then both thedemand and the price for tourism services increase as a result. However, theincrement of the demand for best environmental quality gets higher, andtherefore, the environmental quality level of tourism services, that the destinationoffers, decreases. Second, an increase in the value of the tourism tax leads to anincrease in the total environmental quality of the destination.
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Subject (LC):
Notes:
Περιέχει βιβλιογραφία και παραρτήματα
