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2011/2012

Taxing tourism and subsidizing non-tourism: A welfare-enhancing solution to “Dutch disease”?

Tourism Management, , 32(5), 1223-1228

Author(s)Li Sheng
Summary

Using a combined analysis of a general equilibrium and a partial equilibrium, this study models the impacts of a combined policy tool based on taxing tourism and subsidizing non-tourism in a tourism-dependent destination. The results suggest that such a policy tool, while widely discussed in economics literature, may not be suitable for a tourism destination, as it might have adverse effects on local welfare.


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