Land Value Capture from Touristic Development: Methodological Approach and Practical Implementation

Abstract

Considering the increasing touristic supply and demand, globalization, and the entailed increases in property prices, which strategies and instruments should urban planning use to take advantage of these higher prices and revert them on behalf of the local inhabitants to ensure them a good quality of life? This article will propose a planning instrument that is based on the capture of betterments that stem from municipal decisions, which will revert to the infrastructure's provision, maintenance, and renewal that result from urban interventions or to fulfill social goals, or both in traditional residential neighborhoods. In this article, this instrument will be applied to Planning Unit UP11 (UP11) of the Urban Development Plan for the Municipality of Lagoa, Algarve, Portugal. This article could contribute to the debate on the role of planning and tourism-oriented land use management strategies, policies, and instruments. It will attempt to assess the impact of public-engendered land betterments on local populations and could create value for local communities, which ensures their quality of life.