Effects of Tourism on Community Economic Well-Being and Heterogeneity of Local Destinations: Evidence From a Developed Tourist Market

Abstract

Unease with tourism has spread to many areas with large populations, and local governments are implementing or discussing measures to reduce tourist intensity. The metropolitan-based narrative about the negative externalities of tourism has often been projected onto all types of destinations. Our research empirically analyzes whether the effects on community well-being are as homogeneous as anti-tourism narratives assume, in a heterogeneous and mature tourism market. We find that in both larger and smaller municipalities, tourism increases inequality, although to a limited extent. However, the effects on per capita income and on housing rental prices differ greatly. Government should avoid a "one-size-fits-all" approach when considering tourism policies.