Skip to main content

The Effect of Tourism Taxation on International Arrivals to A Small Tourism-Dependent Economy.

Adedoyin, F. F., Seetaram, N., Disegna, M. and Filis, G., 2021. The Effect of Tourism Taxation on International Arrivals to A Small Tourism-Dependent Economy. Journal of Travel Research. (In Press)

Full text available as:

[img]
Preview
PDF (OPEN ACCESS ARTICLE)
00472875211053658.pdf - Published Version
Available under License Creative Commons Attribution Non-commercial.

698kB

DOI: 10.1177/00472875211053658

Abstract

This paper examines the effects of tax policies on international tourist arrivals to the Maldives using the fully modified ordinary least squares (FMOLS) panel data method. The Maldives is chosen as a case study because the nation is heavily dependent on tourism and earn up to 70% of total government revenue in tourism tax. As expected, the estimated tax elasticities show that tourism tax adversely influences inbound travel, but significant differences across source markets are observed. Specifically, a 10% increase in tourism tax reduces demand by 5.4%. The degree of responsiveness of tourism demand to changes in taxes is essential for tourism policy since a change in the cost of visiting a destination resulting from a change in tourism tax policies affects inbound tourism demand. Consequently, the effectiveness of current fiscal policies is a matter of concern for attracting international tourists to the Maldives.

Item Type:Article
ISSN:0047-2875
Uncontrolled Keywords:tourism tax, inbound tourism, demand elasticities, small island destinations, FMOLS, Maldives
Group:Bournemouth University Business School
ID Code:36237
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:10 Nov 2021 12:14
Last Modified:10 Nov 2021 12:14

Downloads

Downloads per month over past year

More statistics for this item...
Repository Staff Only -