Tourist choice, competitive tourism markets and the effect of a tourist tax on producers revenues

We propose a model for the tourism sector assuming basically two markets, one tourist services and other accommodation. These sub-markets are considered as separate but interrelated. The nature of feedback is determined by vertical complementarity between lodging. obtain optimal solution choice problem, primary demand derived overnight stays. Then, we focus on equilibrium outcomes perfectly competitive markets. do not address externalities caused activities. Consequently, move away from efficiency introducing tax stays inspecting consequences competitiveness producers’ revenues in each market. answer key elements are, apart reservation prices, direct cross-price elasticities services. study structural parameters extends completes our analysis tourism.