The empirical exercises of this article were carried out through a CGE model for the Spanish economy.
The interest of this country is twofold as Spain is a medium-sized,
developed country with an important tourism industry,
and has seen several experiences and proposals of tourist taxes in recent years.
Thus, after briefly analyzing the situation of tourism taxation in Spain,
the effects of two hypothetical taxes with effects on tourism-related sectors were analyzed:
a room tax equal to 10% of the room price (only on nonresident consumers)
and a rise in VAT rates on hotels, restaurants and similar services.
The results show that both the room tax and a moderate VAT increase (from 7% to 12%) would have similar aggregate effects,
with minor changes in all sectors except hotels and restaurants.
Yet the economic effects of a VAT increase to 16% would be much greater,
so its introduction is likely to be more difficult