Explain the incidence of this tax, Taxation

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Question 1:

Government imposes a specific tax on hotel room. Use demand and supply analysis to explain the incidence of this tax on the tourist, hotelier, Government as well as on the destination.

Question 2:

(a) As a destination manager, how would you maximise the positive economic impacts of tourism in Mauritius? Give appropriate examples to supplement your answer.

(b) Critically discuss the main external and internal factors affecting tourism demand in Mauritius?

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