Public Finance Strategies from Sustainable Tourism as a Foundation of Economic Growth
Many islands rely heavily on tourism for economic growth and sustainability. At the same time, tourism can impose infrastructure, service, and environmental costs on island economies. Islands need mechanisms for making longer-term investments in their economy, in part, to offset the negative impacts of tourism. Public finance strategies could invest revenues from one sector, such as tourism, into mitigating the negative externalities caused by that industry. They could also be used to improve infrastructure, protect natural resources, and provide other socially beneficial factors with long-run economic growth potential that directly impact the quality of life for residents and the country’s appeal as a tourist destination. This project will investigate current tourism-related public finance practices in islands and the existing policy frameworks, successful strategies, and major challenges that have been barriers to their implementation.