Collective or Individual? What Types of Tourism Reduce Economic Inequality in Peripheral Regions?

Abstract

Regional inequalities are a major concern for governments and policymakers. There is no doubt that tourism impacts the reduction of inequalities, but this impact is not entirely clear. We consider this ambiguity to be related to both the level of study and type of accommodation. In the present study, we examine the inequality level measured by the Gini coefficient in 108 municipalities of the peripheral region of northeastern Poland from 2009 to 2018. We employ a directional spillover index to measure the impact of two accommodation types on tax incomes per capita. The empirical results indicate that collective accommodation-based tourism only reduced inequality during the financial crisis, while individual accommodation-based tourism started to reduce inequality from 2014, when Russian sanctions hit local agriculture and businesses. These results indicate that the role of accommodation types is time-varying and evident in measuring economic distress during and after shocks.