Tourists' willingness to pay to improve sustainability and experience at destination

Abstract

Consolidated tourism destinations face certain challenges derived from aspects such as new client demands, growing competition, the problems of overtourism and tourism-phobia, and the modernization of infrastructures. The creation of taxes and/or public fees that affect tourism activities is one potential option for public managers facing these difficulties. The objective of this study is to determine tourists’ willingness to pay in order to increase the income of public managers to create these types of policies. The study was carried out in Andalusia, a region of southern Spain with high rates of tourism, which received some 32.4 million tourists in 2019. A survey was conducted on 1068 tourists at the main tourism arrival points of this region. First, factors influencing the willingness and amount to be paid by each tourist were identified; for this, distinct statistical techniques were used (binary logistic regression and decision trees). Second, the sensitivity of tourism demand was analyzed with regard to the establishment of these types of taxes and public fees, concluding that tourism demand is inelastic in the face of a moderate increase in prices resulting from the creation of taxes and/or public fees. • Three out of every four tourists demonstrated their willingness to pay. • Income, budget, sex, age and education level have been determinant to the WTP. • Income and budget have the greatest association with the amount to be paid. • Tourism demand is inelastic in the face of a moderate increase in prices.