Tourism and tax revenue: evidence from stay-over tourists in the Eastern Caribbean

Mohan, Preeya; Strobl, Eric (2023). Tourism and tax revenue: evidence from stay-over tourists in the Eastern Caribbean. Current issues in tourism, pp. 1-23. Taylor & Francis 10.1080/13683500.2023.2202307

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This paper investigated the impact of international stay-over arrivals on tax revenue for tourism-dependent Small Island Developing States (SIDS). To this end, we constructed a unique monthly panel data set of stay-over arrivals and tax revenue and its various components for the period 2002–2018 for Eastern Caribbean SIDS. A Bartik-type instrumental variables estimator exploiting differences in the exposure to and the extent of shocks in the origin markets was used to quantify the impact of stay-over arrivals on tax revenue and its different sources. Our results showed a large cumulative positive elasticity to tourism arrivals of 26.98% for total revenue, 26.86% for goods and services revenue, 23.62% for international trade and transactions revenue, 20.5% for income and profits revenue and 5.54% for property revenue. The findings demonstrate the region’s strong dependence on tourism for government income.

Item Type:	Journal Article (Original Article)
Division/Institute:	03 Faculty of Business, Economics and Social Sciences > Department of Economics 10 Strategic Research Centers > Oeschger Centre for Climate Change Research (OCCR)
UniBE Contributor:	Strobl, Eric Albert
Subjects:	300 Social sciences, sociology & anthropology > 330 Economics
ISSN:	1368-3500
Publisher:	Taylor & Francis
Language:	English
Submitter:	Julia Alexandra Schlosser
Date Deposited:	18 Dec 2023 08:32
Last Modified:	18 Dec 2023 08:32
Publisher DOI:	10.1080/13683500.2023.2202307
URI:	https://boris.unibe.ch/id/eprint/190036