| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$234.17 |
44 |
|
Percentage of total item cost: |
17.71% |
41 |
|
Overall tax index: |
132 |
41 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Istanbul. The second
item (percentage of total
item cost)
indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show how
Istanbul compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Istanbul currently has an
overall Tax Barometer index of 132,
indicating an
32% increase in
travel-related taxes since June 15, 1994.
This change can be
attributed primarily to a 3.0% increase in the Turkish consumption tax. The
Turkish VAT was increased two percentage points in 2000 and a single
percentage point in 2001 to its current level of 18.0%. These increases
were do in large part to assist the recovery effort following the
devastating earthquakes Turkey suffered in 1999. For a five-day, four-night trip to
Istanbul, travelers
can expect to pay approximately $234.00 in tourism-related taxes, a
total that ranks as the ninth highest among all
surveyed destinations, and the fifth highest among
the 18 European destinations.
|
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$258.12 |
- |
|
Airport access fee: |
8.00% |
- |
|
Value added tax (VAT): |
18.00% |
- |
|
Total charges for 4-day rental with taxes: |
$325.23 |
- |
|
Total tax $ for 4-day rental: |
$67.11 |
43 |
|
Percentage of total car rental cost: |
20.63% |
29 |
|
Car rental tax index: |
173 |
44 |
|
Summary:
A four-day, mid-sized car rental in Istanbul will cost a visitor
approximately $67.00 in taxes, the 10th highest total overall and
the 10th highest among surveyed European destinations.
The tax total has increased 73% since 1994, the ninth highest
increase overall and the second highest among all 18 surveyed
destinations in Europe. The 3.0% increase in the Turkish VAT and
the introduction of an airport access fee in 1998 are the primary
reasons for this increase. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$600.00 |
- |
|
Value added tax (VAT): |
18.00% |
- |
| Total
charges for 4-nights lodging with taxes: |
$708.00 |
- |
|
Total tax $ for four-nights: |
$108.00 |
44 |
|
Percentage of total hotel room cost: |
15.25% |
46 |
|
Hotel
tax index: |
120 |
41 |
Summary: Hotel room taxes have risen
20% since 1994, the result of a 3% increase in the Turkish national
VAT. This increase is the 12th highest overall, and the second
highest among surveyed destinations in Europe. Taxes on a
four-night hotel stay total approximately $108.00, the ninth highest
among all surveyed destinations. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$244.80 |
- |
|
Value added tax (VAT): |
18.00% |
- |
|
Total charges for 12 meals with taxes: |
$288.86 |
- |
|
Total tax $ for 12 meals: |
$44.06 |
35 |
|
Percentage of total restaurant meals cost: |
15.25% |
39 |
|
Restaurant tax index: |
120 |
44 |
Summary: Restaurant meal taxes have risen 20% since 1994,
the 9th highest increase among all surveyed destinations and the
second highest among those destinations surveyed in Europe. Like
the hotel and car rental sectors, this increase can be attributed to a
3.0% increase in the Turkish VAT rate which occurred following the
earthquakes of 1999. Taxes on twelve meals total approximately
$44.00, the 18th highest total among all surveyed destinations, and
the ninth highest among the 18 surveyed destinations in Europe. |
 |
Rank |
|
International airport service charge: |
US$ 15.00 |
- |
|
Total tax $ for international arrival and departure: |
$15.00 |
22 |
|
Percentage of total trip cost: |
1.13% |
20 |
|
Air passenger tax index: |
125 |
10 |
Summary:
The international airport service charge, Istanbul's lone tax on
international airline passengers, has increased 25% since 1994.
This tax was raised from US$ 12.00 to US$ 15.00 in 1997. The
total amount of taxes levied on international airline passengers is
the 31st highest among all surveyed destinations. However, the 25% increase is the
10th lowest.
|
 |
|
Barometer No. 4:
The
airport service charge was increased from US$ 12.00 to US$ 15.00.
Barometer No. 8:
An airport access
fee of TL 5,000,000 was introduced, affecting car rental rates.
Barometer No. 9:
The Turkish VAT was
increased two percentage points to 17.0%, affecting car rentals,
hotels and restaurants. Also, the airport access fee on car rentals
was changed to an 8.0% tax computed on the base rental price.
Barometer No. 10:
The VAT on car rentals, lodging, and restaurant meals was increased to
18.0%.
|
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