Arguments in Favour of Taxing Tourism. The Lanzarote Case Study

This work discusses the theoretical foundation for the introduction of a taxation mechanism capable of collecting the necessary and indispensable financial resources to carry out public policies aimed at planning and managing tourism development. The research focus on some dynamics observable in Lanzarote (Spain), where different aspects and impacts of tourism development are identified and analyzed to demonstrate the existence of external costs. The ascertainment of external costs in Lanzarote leads the research to examine the theory of the “rent capture” as Hartwick proposes to reach some conclusions as the use of tax revenues for the enlargement of the carrying capacity of physical facilities or the funding of research for improving destination management strategies. The originality of this article is to delve into the theoretical justification for the implementation of a taxation mechanism at tourism destinations.