| Abstract: |
Private goods and common goods coexist in tourism. However, the nature of the
latter means that self-interest alone cannot guarantee their optimal
provision. Hence, coordination emerges as a necessary strategy to reconcile
both. The analysis shows that, with coordination, a virtuous circle emerges
between common goods (public incentive) and tourism (private incentive),
becoming more intense and important with tourism-driven economic development.
Coordination also allows a transition toward high-quality tourism (crowding
out low-quality tourism), which is necessary to compensate for the lack of
productivity in this sector. Without coordination, there is room for a tourism
development trap or economic growth reversal. Finally, we identify a “Quality
Paradox”: quality improvements might jeopardize economic growth by triggering
a price hike, reducing overall competitiveness. |