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Purpose

The global call for transformative changes requires sustainable solutions to counter the negative externalities. The present study underpins the role of tourism taxes in building a regenerative future. The interplay of tourism taxes and sustainable tourism is vigorously debated, but fails to accord the key enablers in the past literature. The study will bridge the past literature in an advanced manner, supported by empirical evidence.

Design/methodology/approach

The study uses a mixed-methods approach wherein the key enablers are identified through the thorough investigation of the literature and later corroborated with the veridical experiences shared by the respondents, experts and fuzzy AHP.

Findings

The study uncovers the varied dimensions pertaining to the implementation of taxes in the tourism space. The study reiterates the call for transformative changes as fiscal instruments for sustainable tourism. Furthermore, it highlights the quintessential role of responsible tourism in the implementation of tourism taxes.

Research limitations/implications

The present study extensively contributes to the theory of social exchange, the theory of regenerative tourism, the systems approach and the Irridex model. It builds on the theory of Pigouvian to offer solutions for balancing growth and externalities.

Practical implications

The study offers reflection for the practitioners, public policy makers and academicians who may build upon the concept to implement the taxes in a phased manner. The study provides great insights into the sustainability concerns, wherein fiscal space is required to take corrective actions.

Originality/value

The study is novice and exploratory as no other study has shown the interplay of tourism taxes and sustainable tourism in the Indian context.

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