As a result, public intervention to restore economic efficiency may be necessary,
with indirect taxes as a powerful tool to incorporate all those external (non-included)
costs in the final price paid by tourists (Clarke & Ng, 1993).
Moreover, tourism taxes could have significant direct effects on the quality of tourism demand
and the magnitude of the added value generated by the sector through reduced congestion
and an increased willingness to pay by tourists.
Furthermore, the tax might be used with a variable time profile
to avoid congestion peaks and de-seasonalize tourist activities,
contributing to a better economic performance.
Although, as previously hinted, it may be difficult both physically
and administratively to exclude locals from paying tourism taxes,
in the case of external costs efficiency and equity considerations suggest that
a discriminatory treatment of tourists should be avoided as all agents that cause them should be liable