Central place theory and tax revenue from tourism

Department

Economics, Finance and Quantitative Analysis

Document Type

Article

Publication Date

1-1-2021

Abstract

Many governments, both state and local, attempt to promote tourism as a way of raising revenue and encouraging economic development. This is especially prevalent in Florida, where tourism revenue constitutes a major source of revenue through the sales tax. However, some areas in Florida are considerably more popular as tourist destinations than others. In this article, I use central place theory to provide a theoretical framework for dividing metropolitan areas into categories with similar characteristics and similar levels of tourism in order to provide policy recommendations specific to each category. I conclude that a uniform approach to tourism promotion will have far less meaningful overall effects compared to policies targeted based on this division of tourism destinations.

Journal Title

Journal of Public Finance and Public Choice

Journal ISSN

25156918

Volume

36

Issue

1

First Page

87

Last Page

111

Digital Object Identifier (DOI)

10.1332/251569120X15803491809957

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