The literature argues that tourism development decreases regional inequality. Brazil has one of the most unequal regional income distributions in the world. This research note aims to measure the economic impact of domestic tourism expenditure on regional inequality in Brazil. We use an inter-regional input-output model calibrated for the five macro-regions of Brazil. The main results indicate that the Northeast has felt the highest economic impact among Brazilian regions due to domestic tourism expenditure. Furthermore, domestic tourism has helped to reduce Brazilian regional inequality. Policymakers should improve the tourism sector in order to maximize this effect, especially in poor regions.
