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Efficient pricing of tourist sites

Efficient pricing of tourist sites

Title: Efficient pricing of tourist sites
Author: Árnason, Ragnar
Date: 2017-06-30
Language: English
Scope: 133-150
University/Institute: Háskóli Íslands
University of Iceland
School: Félagsvísindasvið (HÍ)
School of Social Sciences (UI)
Department: Hagfræðideild (HÍ)
Faculty of Economics (UI)
Series: Tímarit um viðskipti og efnahagsmál;14(1)
ISSN: 1670-4444
1670-4851 (eISSN)
DOI: 10.24122/tve.a.2017.14.1.6
Subject: Tourist sites; Limiting access; Pricing of access; Externalities; Environmental costs; Ferðamannastaðir; Ferðaþjónusta; Umhverfismál; Verðlagning
URI: https://hdl.handle.net/20.500.11815/647

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Ragnar Árnason. (2017). Efficient pricing of tourist sites. Tímarit um viðskipti og efnahagsmál, 14(1), 133-150. doi:10.24122/tve.a.2017.14.1.6


Foreign tourism has expanded very fast in Iceland in recent years. Much of this tourism targets relatively few places of particular natural beauty. This has resulted in two notable external effects; deterioration of some of the natural features of these sites and significant crowding in the more popular ones. These manifestations of scarcity suggest the social desirability of limiting access to these sites. Basic economic theory holds that optimal use of scarce resources may be accomplished by means of prices. On that basis this paper considers prices for access to natural tourist sites. Optimal pricing rules are derived, their content explained and their practical applicability considered. Comparison of these optimal pricing rules to those that might be set by individual owners is briefly examined. While motivated by the Icelandic problem, the findings of the paper have general applicability.


Útgefið efni tímaritsins er í opnum aðgangi samkvæmt skilmálum Creative Commons Attribution 4.0 License.

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