nep-tur New Economics Papers
on Tourism Economics
Issue of 2015‒12‒12
two papers chosen by
Laura Vici
Università di Bologna

  1. Towards diversification of the tourism sector: A recreational demand study of yachting and marina services in the Caribbean By Phillips, Willard
  2. Tax Incentives and Job Creation in the Tourism Industry of Brazil By Grégoire Garsous; David Corderi; Mercedes Velasco

  1. By: Phillips, Willard (Comisión Económica para América Latina y el Caribe (CEPAL) United Nations)
    Abstract: Although tourism has been a major economic sector in the Car ibbean s ince the mid-1960s, the sector now faces significant challenges as competit ion intensif ies in the global tourism market. These challenges include environmental impacts, and the need for continued high levels of public investment in order to sustain the tourism product. The precariousness of the sector was made starkly evident with the onset of the global recession in 2009, when the sector recorded significant decline. Notwithstanding some limited recovery since that time, the recent experience highlighted the need for Caribbean countries to undertake more vigorous efforts towards diversifying their economies in general, and enhancing their tourism sectors in particular. One area identif ied for specific development is yachting and marina services, a sub-sector which is widely regarded as having significant economic potential. Towards this end, the present study seeks to examine the nature of recreational demand for yachting and marina services in the Caribbean. In order to achieve this, a simple demand model is estimated, and elast icities calculated for three demand var iables. Using data from eight countries, the model identified income in the source market, airline t icket cost, and the frequency of hurricanes as the three most critical variables which influenced consumers’ decision to seek yachting and marina services in the Caribbean.
    Date: 2014–02
  2. By: Grégoire Garsous; David Corderi; Mercedes Velasco
    Abstract: In recent decades, a significant number of developing countries have implemented fiscal incentives programs for the tourism industry as part of their regional development policies. The main objective of these programs is to increase local investment and employment, as tourism activities are labor intensive. Little evidence is available, however, to assess the effect of these policies on job creation. This paper analyzes a fiscal incentives program that the Brazilian federal government introduced in 2002 to develop the tourism industry in the undeveloped region of Northeast Brazil. It provides evidence that income tax credits had a significant positive effect on job creation. We find that local employment in the tourism industry was on average 34 percent higher in those municipalities that benefited from the program.
    Keywords: Tourism, Tax incentives, Taxation, Fiscal Policy, Investment, Labor markets
    Date: 2015–11

This nep-tur issue is ©2015 by Laura Vici. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.