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TOURISM ECONOMY (2) answer(s).
 
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ID:   130543


Tax incidence and price discrimination: an application of theories to gambling markets / Gu, Xinhua; Tam, Pui Sun   Journal Article
Gu, Xinhua Journal Article
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Publication 2014.
Summary/Abstract This paper examines whether a casino tax is good for local welfare in a tourism economy. We find that what is important for efficiency is not the tax rate itself but the tax incidence on tourists. Casino tourism in Macao engages in price discrimination via market segmentation. We prove that, compared with the mass market, the VIP market will grow faster with a greater price rise if a tax hike on the VIP market is not large, but will grow less rapidly with a smaller price increase if the tax hike is very large. An empirical study is carried out using data from Macao, which is typical of segmenting markets for discriminatory pricing. We show that our theory is largely consistent with observed evidence. This paper also provides some policy recommendations useful for Macao. We propose that its casino tax should be kept low at its current rate in the mass market but be raised substantially in the VIP market if its economic growth is to be made less unbalanced and more sustainable.
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2
ID:   162643


Transforming Dubai: Oasis to tourist’s paradise / Choudhary, Bikramaditya K   Journal Article
Choudhary, Bikramaditya K Journal Article
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Summary/Abstract Owing to fast pace of urbanization and associated development, Dubai rose to global prominence in a matter of a few years. Dubai has transformed its geographical incapacities to phantasmagorical way of living; from building the superlative structures to its magnificent architectural fantasies, to the reconfiguring of a desert into an urban hub of business, logistics, tourism, and retail shopping paradise. In the race to achieve global competence, it has changed its ecological realities into pursuits driven by enigma of capital and desire of hyper-consumerism. The creation of the cityscape paralleled by vanishing natural and cultural spaces of the recent past, retrofitted with global desires like shopping complexes, beach resorts, luxurious hotels, ski clubs, art museums, operas, etc. The article is situated in the context of the urban spatial transformation of Dubai, driven by neoliberal politics and the changing human–nature relationships riding on the accelerating capital circulation.
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