Tourists are typically willing to pay more for products or services than local consumers because tourists get larger marginal benefits from these items.

Question

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Tourists often have a greater willingness to pay for products or services because they are temporary consumers and may have higher disposable income or a desire to fully experience the destination they are visiting. Additionally, tourists may perceive a purchase as a unique or once-in-a-lifetime opportunity, contributing to their willingness to pay more.

Tourists Are Typically Willing to Pay More for Products or Services