Preservation of Environmental Quality and Tourist Investments

The aim of this paper is to show that the incentive of hotel chains to invest in environmental quality depends on the demand in days of rest on the part of tourists and on the level of aggregate income. The framework is based on the theoretical model of horizontal differentiation a la Hotelling introduced in [5]. We modify this model by introducing a demand function for tourism commodities. We show that an increase on total income incentives hotel chains in the regions whit higher demand to invest in environmental quality