This paper aims to calculate the assessment of the tourism market of a new local public good, specifically of an artificial beach. To this end, the Hedonic Price Method, which estimates the value of goods or services based on their private and/or public characteristics, has been applied. In order to achieve this objective within an adequate framework, an innovative theoretical and empirical extension of the Hedonic Model is presented. This model allows us to challenge the assumption of a perfect competitive market. The study is carried out for the city of Gijón and the data set is extracted from “Guía Oficial de Hoteles de España 2009”. The results indicate the existence of market power in Gijon’s Tourism Market and the importance of public attributes and surroundings in regards to hotel prices.

Key words: tourist prices, hedonic method, public goods, market power.
JEL Classification: DO4, L83, R33.