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“Tourists go home(?)” Evaluating the impact of the sustainable tourism tax in the Balearic Islands using a difference-in-differences approach
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Resumo(s)
The resurgence of post-pandemic travel has intensified debates over tourist taxes as a tool to mitigate
overtourism's challenges, such as congestion and environmental strain. This thesis evaluates the
impact of the 2016 Sustainable Tourism Tax in the Balearic Islands using a Difference-in-Differences
approach with the Canary Islands as a control. Results reveal no negative impact on tourist arrivals
or length of stay while simultaneously strengthening regional budgets and financing sustainability
projects. Lagged spending and occupancy rates emerged as relevant demand factors. The findings
highlight the potential of modest, earmarked taxes to balance tourism demand with fiscal and
environmental objectives.
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Overtourism Tourist tax Sustainable tourism Difference-in-Differences Balearic Islands Tourism demand