Tourism, congestion, taxation, and strategic interaction

Mohan, Vijay, Nabin, Munirul and Sgro, Pasquale 2007, Tourism, congestion, taxation, and strategic interaction, International journal of tourism policy, vol. 1, no. 2, pp. 134-152.

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Title Tourism, congestion, taxation, and strategic interaction
Author(s) Mohan, Vijay
Nabin, MunirulORCID iD for Nabin, Munirul
Sgro, PasqualeORCID iD for Sgro, Pasquale
Journal name International journal of tourism policy
Volume number 1
Issue number 2
Start page 134
End page 152
Publisher Inderscience Publishers
Place of publication Olney, Switzerland
Publication date 2007-10-24
ISSN 1750-4090
Keyword(s) government policy
business strategy
tourism policy
tourism tax revenue
island tourism
small islands
small island economies
strategic interaction
Summary This paper examines the strategic interaction between firms and governments in two Small Island Tourism Economies (SITEs). In a situation where congestion can threaten the viability of tourism industries in SITEs, we highlight the role of two factors that determine the distribution of tourists across SITEs: whether the tourism market is vertically or horizontally differentiated, and the extent to which tourists care about congestion. Under these circumstances, counterintuitive results are possible: congestion in a SITE may rise in response to tourists caring more about congestion in the SITE. Moreover, maximising tourism tax revenue emerges as a dominant strategy for governments.
Language eng
Field of Research 140210 International Economics and International Finance
HERDC Research category C1 Refereed article in a scholarly journal
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