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: $182.74 30
Percentage of total item cost: 16.64% 32
Overall tax index:

105

11

The first item in the above table represents the combined tax total paid by the WTTC Traveler in each of the four sectors in Vancouver.  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 Vancouver compares with other Tax Barometer cities; a ranking of 1 is most competitive, while a ranking of 52 is least competitive.

Summary: Vancouver currently has an overall Tax Barometer index of 105, indicating a 5% increase in travel-related taxes since June 15, 1994.  This change can be attributed increases in the car rental and restaurant sectors, which helped offset an decrease in the air passenger sector.  Hotel taxes remain at their base index levels.  For a five-day, four-night trip to Vancouver, travelers can expect to pay approximately $183.00 in tourism-related taxes, a total that ranks as the 23rd highest among all surveyed destinations.

 

Rank

Average price for 4-day rental (mid-size) without taxes: $144.48

-

Airport access fee: 15.60% -
Goods and services tax (GST): 7.00% -
Provincial sales tax (PST): 7.50%
Passenger vehicle rental tax (per day): C$ 1.50 -
Vehicle license and registration fee (per day): C$ 0.47 -
Air conditioning surcharge recovery fee (per day): C$ 0.71 -
Total charges for 4-day rental with taxes: $196.09 -
Total tax $ for 4-day rental: $51.61 31
Percentage of total car rental cost: 26.32% 44
Car rental tax index: 115 24

( in rank column indicates a tax increase in Tax Barometer No. 11)

Summary:
 Car rental taxes have increased 15% in Vancouver since 1994, the 24th smallest increase among the 52 surveyed destinations.  This change can be attributed to an increase in the airport access fee (from 13.87% to 15.60% in 2001), and to the introduction of two new taxes: the vehicle license and registration fee and the air conditioning surcharge recovery fee, both of which were introduced in 2001.  The index was also affected by a half-percent increase in the provincial sales tax in 2002.  For a four-day mid-sized car rental, visitors can expect to pay approximately $52.00 in taxes, a total that ranks as the 22nd highest among all surveyed destinations.

 

Rank

Average price for 4-nights lodging without taxes: $479.47

-

Goods and services tax (GST): 7.00%

-

Local lodging tax: 10.00%

-

Total charges for 4-nights lodging with taxes: $560.98

-

Total tax $ for four-nights: $81.51

36

Percentage of total hotel room cost: 14.53%

43

Hotel tax index: 100

8


Summary:  Vancouver's hotel tax rates remain at their base index levels.  For a four-night hotel stay, visitors can expect to pay approximately $82.00 in taxes, a total that ranks as the 17th highest among all 52 surveyed destinations.

 

Rank

Average price for 12 restaurant meals without taxes: $317.22 -
Provincial sales tax (PST): 7.50%
Total charges for 12 meals with taxes: $341.01 -
Total tax $ for 12 meals: $23.79 24
Percentage of total restaurant meals cost: 6.98% 17
Restaurant tax index: 107 33
( in rank column indicates a tax increase in Tax Barometer No. 11)

Summary: 
Taxes on restaurant meals in Vancouver have risen 7% since 1994, the result of a 0.5% increase in the provincial sales tax.  Vancouver collects approximately $24.00 in taxes for 12 meals, a total that ranks as the 24th lowest among all 52 surveyed destinations.

 

Rank
Vancouver airport improvement fee: C$ 15.00 -
International air travelers security charge: C$ 24.00
Total tax $ for international arrival and departure: $25.83 37
Percentage of total trip cost: 2.35% 37
Air passenger tax index: 98 3


Summary:  Taxes on international airline passengers in Vancouver have decreased 2% since 1994, the third largest reduction among any surveyed destination.  This change can be attributed to the abolishment of the Canadian air transport tax in 2000; this tax was levied at a rate of C$ 25.00 in the base index.  The index rose in 2002 following the introduction of the international air travelers security charge.  This C$ 24.00 fee (C$ 12.00 for one-way flights) was introduced to pay for enhanced security systems at Canadian airports.  The $25.83 in taxes collected on an international arrival/departure ranks as the 15th highest among all 52 surveyed destinations.

 

Barometer No. 1: The 2.0% increase in the airline index was due to a C$ 2.50 increase in the international air transport tax imposed on departing travelers. 

Barometer No. 6: The Canadian air transportation tax was reduced from C$ 27.50 to C$ 15.00.

Barometer No. 9: Air passenger charges were further reduced when the Canadian government abolished the C$ 15.00 Canadian air transport tax

Barometer No. 10: The airport access fee was increased to 15.6%, and fees for vehicle registration (C$ 0.47/day) and air conditioning surcharge (C$ 0.71/day) were introduced.

Barometer No. 11: British Columbia’s provincial sales tax was increased from 7.0% to 7.5%, affecting restaurants and car rentals.  In the airline sector, a new international air traveler’s security charge was introduced at a rate of C$ 12.00 for one-way flights and C$ 24.00 for round trip flights.  The revenue is earmarked for new security measures at Canadian airports.

 


 


 

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