4.2. Simulations
This section deals with the effects of hypothetical specific and general indirect taxes on tourism.
As mentioned above, it is not possible to contemplate tourist taxes in the strict sense of the term,
although some tax reforms with a clear effect on tourist activities can be defined.
Two alternative tax policies are analyzed through the CGE model for the Spanish economy,
with the revenue obtained being fully refunded to the citizens by means
of lump-sum transfers subject to the restriction that the public budget must remain constant with such a tax reform.
5 Taking into account the remarks in the previous sections, it is assumed that central
and regional governments in Spain have incentives to increase taxes on goods and services typically consumed by tourists