Public finance and economic management of tourism destinations

CHARACTERISTICS

Year/semester: 2/3
ECTS: 8

TEACHING STAFF

Lecturer: Dr. Esther Martínez

AIMS OF THE SUBJECT

The course deals with the problem of financing tourism destinations and activities. An introduction to the public sector intervention in the economy is followed by a presentation of taxing and financing strategies for tourism development and management in destinations. Particular emphasis is made in the financing of tourist municipalities

COURSE SYLLABUS

1. Introduction
   • The public sector intervention in the economy and market failures
   • Taxes as an instrument of public intervention
   • Taxes and their types
   • Tax principles
   • Fiscal pressure and other tax related indicators
2. Tax incidence
   • Introduction to tax incidence
   • Analysis of the incidence of taxes and equivalence of taxes
   • Practical issues
3. Taxes in the tourist sector: the case of a municipal tourist tax
4. The financing of tourist municipalities (I)
   • Local taxes
   • Higher government grants to municipalities
5. The financing of tourist municipalities (II)
   • What is a tourist municipality?
   • The financing problems of tourist municipalities

BIBLIOGRAPHY

• J.E. Stiglitz, The Economics of the Public Sector, New York [etc.] : W.W. Norton, cop. 2000, 3Ş ed. Also in Spanish (La economía del Sector Público, Ed. A.Bosch, 2002, Barcelona).
• Gooroochurn, N. and Sinclair, M.T. (2005) Economics of tourism taxation: evidence from Mauritius. Annals of Tourism Research, 32.2: 478-498.
• World Travel and Tourism Council (WTTC), World Travel and Tourism Tax Barometer
• Other references and materials are available on the web page reserved for the subject

COURSE COMPETENCES

Students will be able to understand the role of taxes as mechanisms of financing tourism.
Students will be able to ccritically evaluate the economic impact of different taxes and tax policies and comprehend the interactions between the tourism activity and taxation policies.
Students will be able to design financial and taxing strategies for the development and management of tourism products and destinations.