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The Impact of Tourism on Local Government Expenditures
Author(s) -
WONG JOHN D.
Publication year - 1996
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.1996.tb00908.x
Subject(s) - tourism , local government , government (linguistics) , recreation , administration (probate law) , public economics , business , capital (architecture) , economics , economic impact analysis , capital expenditure , finance , political science , geography , public administration , microeconomics , philosophy , linguistics , archaeology , law
The aim of this study is to broaden the understanding of the impact of tourism on local government expenditures. Specifically, a regression model is developed to examine the hypothesis that there is a direct relationship between the degree of reliance of the local economy on tourism and local government expenditures. This study indicates that the degree of reliance of a local economy on tourism does have a statistically significant impact on the level of capital outlays, transportation, police protection, fire protection, corrections, parks and recreation, financial administration, and general government administration expenditures. This analysis indicates that the share of tourism in the local economy can influence expenditures on a variety of local government services, thus tourism should not be regarded as a totally costless instrument of economic development.