A Dynamic Tax Model Based on Destination Lifecycle for Sustainable Tourism Development

Yang, C.; Lin, Z.; Huang, J.; Cheng, T.

doi:10.1177/00472875211057596

A Dynamic Tax Model Based on Destination Lifecycle for Sustainable Tourism Development

Yang, C.; Lin, Z.; Huang, J.; Cheng, T.

Authors

C. Yang

Professor Zhibin Lin zhibin.lin@durham.ac.uk
Professor

J. Huang

T. Cheng

Abstract

This study proposes a dynamic model for identifying the optimal amount of tourism taxes at the different stages of a destination’s lifecycle. Based on the Ramsey-Cass-Koopmans model of economic growth, we reformulate the Cobb-Douglas function to incorporate new variables to estimate the optimal level of tax that could maximize the total output of the tourism industry while maintaining below the critical point of the destination’s carrying capacity. We illustrate the model with an empirical study using time series data collected from 31 administrative regions in mainland China from 2000 to 2016. The results suggest that the proposed model has satisfactory goodness of fit, and the estimated tax amount was congruent with the trends of tourism development at the destinations. The study offers practical implications for destination policymakers.

Citation

Yang, C., Lin, Z., Huang, J., & Cheng, T. (2023). A Dynamic Tax Model Based on Destination Lifecycle for Sustainable Tourism Development. Journal of Travel Research, 62(1), 217-232. https://doi.org/10.1177/00472875211057596

Journal Article Type	Article
Acceptance Date	Oct 13, 2021
Online Publication Date	Nov 20, 2021
Publication Date	2023-01
Deposit Date	Oct 18, 2021
Publicly Available Date	Oct 19, 2021
Journal	Journal of Travel Research
Print ISSN	0047-2875
Electronic ISSN	1552-6763
Publisher	SAGE Publications
Peer Reviewed	Peer Reviewed
Volume	62
Issue	1
Pages	217-232
DOI	https://doi.org/10.1177/00472875211057596
Public URL	https://durham-repository.worktribe.com/output/1226755

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