Tourist taxes are often ineffective in major cultural destinations like Barcelona and Paris, as tourists prioritize unique attractions and are largely insensitive to marginal price increases. Conversely, in emerging markets where offerings are more substitutable, such as in the Maldives, tourist taxes can significantly decrease visitor numbers, evidenced by a 10% tax increase correlating to a 5.4% drop in arrivals. In established cultural hotspots, increased taxes primarily lead to budget reallocations rather than higher overall spending, as tourists may cut back on dining or attractions to offset higher accommodation costs.