Tourist attitudes towards an accommodation tax earmarked for environmental protection: A survey in the Algarve

Tourist taxes have become increasingly popular worldwide in addressing environmental problems associated with tourism. This paper studies tourist attitudes towards an accommodation tax earmarked for environmental protection in the Algarve, the most important Portuguese tourism destination. A Chi-squared Automatic Interaction Detecting Algorithm (CHAID) is used to segment tourists according to their willingness to pay. This method allowed us to divide respondents into six segments. The dominant one, labelled “typical sun and beach tourists”, shows a low willingness to pay the earmarked accommodation tax. In contrast, the receptivity to this measure is above average in three segments, termed according to their main characteristics as “environmental steward tourists”, “nature oriented tourists” and “frugal tourists”.