Short- and long-term effects of domestic tourism promotion in Argentina after COVID-19

Abstract

At the beginning of 2020, the world experienced the COVID-19 pandemic in which several countries all around the world closed their borders and established isolation measures. These types of measures, in line with the spread of the virus, mainly affected those sectors where face-to-face interaction and mobility were central, as it was the case in the tourism sector. As a response to this crisis, some countries implemented policies to promote tourism within the same country. In this paper, we study the case of a tourist program applied in Argentina and estimate its effects on the tourism sector and the overall economy with a general equilibrium perspective addressing its implications in a context where government’s budget constraints are binding.