Abstract: Since 1990, a worldwide proliferation of taxes on civil aviation has raised numerous protests from the airline industry.  A typical example was the proposed USTTA's facilitation fee, which requires airlines and passenger shipping lines to pay a "user fee" on foreign nationals.  This imposition was perceived to be "discriminatory" in that it required foreigners to bear the costs of promoting tourism to the United States.  This paper defines the term "tax" and "charge," raises issues emerging as a result of such taxations, discusses international responses to this development, and concludes that both international air transport and tourism are inextricably linked to each other and to tax one in order to develop the other would be a self-defeating measure.

Abstract:  Although tourism is an important industry in many developing countries, where tax revenues are often in short supply, surprisingly little attention has been paid to the taxation of the tourist industry.  This paper argues that in principle there is a strong economic case in many, but not all, countries for taxing tourism more than at present, but that the nature of the industry and administrative difficulties severely limit what can be done in practice.  This analysis and a review of the fiscal instruments available to most developing countries suggest three main conclusions: first, more attention should be paid to introducing adequate "charging" policies where possible; second, special taxes on hotel accommodation are generally the key to tourist taxation; and, third, there is little reason to provide special incentives for investment in the tourist industry.

Abstract:  Travel destinations commonly levy hotel room taxes to finance services demanded by tourists and residents.  Evidence to date on the effects of a hotel room tax has centered on ex ante analyses of the incidence of a hotel room tax and its effect on the demand for travel and vacation goods.  In this paper we employ interrupted time series analysis to estimate ex post the impact of a hotel room tax on real net hotel revenues by analyzing that time series before and after the imposition of the tax.  We find that the tax had a negligible effect on real hotel revenues.

Abstract:  Until 1993 all U.S. state governments actively financed the promotion of travel to their states.  In recent years, however, there has been growing public sentiment that governments should not directly engage in or fund tourism promotion.  Colorado voters abolished their state's tourism board in 1993, while four other states are also looking for ways to privately fund state travel promotion.  This article examines whether current efforts to induce a greater private funding of destination travel promotion are likely to succeed.  It is suggested that a broad-based, dedicated travel industry promotion tax is an effective way to reduce free riding by travel businesses and increase private funding of destination promotion.

Abstract:  Tourism taxes have become an important source of revenue for many tourist destinations in the USA.  Among the most widely used is the hotel room tax, levied by 47 states and many localities.  Room taxes are touted by proponents as a way to shift the local tax burden to non-residents, while the travel industry claims the levies significantly harm their competitiveness.  Previous studies of room tax impacts have relied on ex ante estimates of demand and supply elasticities.  In this study, we analyze the effect on hotel revenues of the Hawaii room tax using time series intervention analysis.  We specify a time series model of revenue behavior that captures the long-term cointegrating relationships among revenues and important income and relative price variables, as well as other short-run dynamic influences.  We estimate the effect on Hawaii hotel room revenues of the 5% Hawaii hotel room tax introduced in January 1987.  We find no evidence of statistically significant tax impacts.

Abstract:  A theoretical framework based on economics is provided for assessing tourism's costs and benefits.  Suppose that resources utilized by tourists are owned by residents and, as marketed goods or services, are priced efficiently.  Then increased tourism promotes net average (i.e., Pareto) economic gains for residents even in the face of such things as increased environmental costs and increased charges.  Therefore, under these circumstances, there is no case for entry taxes or qualitative restrictions on tourism to deal with environmental issues.  However, such taxes can be justified on rent-seeking grounds that are discussed in this paper.

Abstract:  Not available

Abstract:  In recent years, policy makers have begun to recognize that noncompliance in collecting local option lodging taxes is a growing problem that if unchecked will ultimately threaten the capacity of local governments to raise revenue in support of their tourism economy.  This paper examines compliance with collecting and reporting local option lodging taxes.   A conceptual framework is provided for examining tax compliance in this area based on the existing income tax compliance literature.  Potential measurement strategies that may be employed to assess the degree of noncompliance with the local option lodging tax are discussed.

Abstract:  Not available

Abstract:  Sales taxes paid by businesses are buried in production costs and therefore hidden from consumers and policymakers.  Final (tax included) prices are related to the number of taxable transactions that the good has undergone and who bears the tax as well as the resource costs.  Thus the total sales tax embedded in final prices is obscured.  This study investigates the level and the incidence of sales taxes applied to business transactions.  An input-output model assuming full pass forward of the tax is employed.  The embedded sales tax is more regressive than the direct share paid by consumers and is found in most commodities including those exempted by legislation.

Abstract: The significance of tourism as a source of income and employment, and as a major factor in the balance of payments for many countries, would be even greater if barriers to international tourism could be reduced or eliminated.  As part of the overall growth of services, tourism is finally beginning to be recognized as an important sector of the global economy.  The importance of what is happening globally in the tourism policy arena is manifested by the implementation of the General Agreement on Trade in Services as part of GATT in the categories of: 'Tourism and Related Services' and 'Recreational, Cultural and Supporting Services'.  These efforts to improve freedom of fair trade in tourism will have positive effects on international tourism growth.  Nevertheless, the tourism industry can expect to face many challenges over the next few years.  One of the key challenges will be to overcome the many barriers to international tourism.

Abstract:  This paper examines the incidence and exportability of an ad valorem hotel room occupancy tax for Hawaii vis-à-vis alternative tourist taxes.  The study employs a system approach and times series data (1961-1980).  Results indicate that a hotel room tax is readily, though not fully, shifted/exported.  It is more readily exported than similar taxes levied on entertainment and on purchased meals and drinks, or a general excise/sales tax, since taxes levied on non-lodging expenditures also fall heavily on residents.  Our results also suggest that taxes imposed on tourist spending have a moderately large negative output effect on the visitor industry.

Abstract: This article summarizes a study of the impacts of room taxes on the lodging industry by (1) reporting the findings of Phase II of an overall study assessing the negative impacts on number of rooms rented of room taxes taxes levied on the lodging industry, and (2) applying the price elasticity of market demand found in step 1 to the average amounts of room taxes paid, as measured in Phase I of the overall study.  The elasticity measurement comes from a statistical model based on data from a national probability survey of the properties owned by members of the American Hotel and Motel Association taken in Spring 1990.

Abstract:  This article addresses the question of tax incidence or the ultimate sharing of the burden of room taxes assessed on the lodging industry between guests and the lodging industry.  The study presents a new analysis of elasticity of supply of lodging services, but draws on an earlier study of elasticity of demand in making this assessment.  The elasticity of supply is measured at 2.86, in comparison with -.44 elasticity of demand for lodging services.  This results in a tax incidence of 6.2, which means that about $6 out of $7 of the tax is ultimately paid by the guests and $1 is paid indirectly by the lodging industry.

Abstract:  Not available

Abstract: This article employs comparative static analysis to derive a general expression for the effect of an increase in the ad valorem tax rate on a good on the net revenue of firms.  The magnitude of this effect is expressed as a function of the initial levels of the tax rate and net revenue of taxed firms as well as the elasticities of supply and demand for the good.  The authors' results applied to the hotel industry suggest caution in relying heavily on revenues derived from hotel room taxes.  Increases in hotel room tax rates may have large negative effects on the financial viability of the industry.

Abstract:  The findings of a survey of 490 Japanese tourists visiting Hawaii suggest a model for tourists' propensity to buy goods in a vacation destination.  The verbal model considers types of products available, level of domestic tax and import duties, relative value of specific goods, and retailer strategy.

Abstract:  This study examined the secondary impact as compared to the primary impact of foreign tourist receipts on the South Korean economy for output, personal income, employment, value added, indirect tax, and import, using an input-output model.  This study also analyzed the performance of the tourism industry as compared to other export-oriented industries in terms of multipliers and substitution effect.

Abstract:  In many tourist areas special taxes are placed on hotel room rentals.  Such a tax has numerous proponents in Hawaii, where the tax is viewed as a potentially significant source of revenue.  This study examines both the impact of a hotel room tax on visitor behavior and the potential revenue which could be generated from such a tax.

Abstract:  Previous findings that the hotel room tax can be passed on are contradicted in this re-examination of the tax.  Tax incidence analysis is used to illustrate the extent to which hotel operators can pass on the tax, and evidence is presented that tourists are more price-sensitive than previously believed.  The suggestion is made that earmarking the tax funds to develop the tourist industry may help overcome negative effects.

Abstract:  A designed experiment can address issues that modeling on time series data cannot.  The article illustrates the power of experimental design and analysis with multinomial logit models to assess the independent effects of price factors.  It uses the example of tourists from Kuala Lumpur choosing one of eight destinations in contexts where the prices of one alternative (Sydney) were varied.  Airfares are seen to have more impact on destination choice than hotel tariffs or exchange rates.

Abstract:  This paper is intended to put the notion of hotel taxation into perspective providing a framework of elements which tax experts and hospitality specialists deem important.  Included tax elements consist of economic considerations, tax incidence, tax progressivity, and tax exportability.  These elements are also examined as part of a process under conditions of inelastic and elastic demand.  Finally, a brief discussion of taxation policy implications is provided.

Abstract:  The quality as well as the quantity of public facilities provided by local government has significance far beyond local boundaries.  Indeed, State and Commonwealth governments have a vested interest in ensuring that some minimum level of public expenditure is maintained at the local level.  For this reason, intergovernmental grants are provided for local government to meet their perceived need for tourism-related public expenditure on facilities and service.  The prime source of local government revenue is the property tax (or "rate") which is largely determined by property values.  Apart from any conscious decision to change the rate of tax, the tax receipts of local government depends upon movements in property values.  For local areas in which tourism dollars are spent, we can expect that some of this expenditure will be reflected in rising property values.  Thus, local government can make fiscal gains (via the higher property tax receipts) from successful tourism ventures which offset (in part at least) the public costs they may incur.  Failure to acknowledge these gains may lead to both an underprovision of facilities by local councils as well as a greater dependence upon the other two tiers of government to meet the (public) cost of tourism needs.

Abstract: In April 1995, the VAT Working Group of the British Tourism Authority (BTA) presented its report on the economic effects of the changing rate of VAT on the UK tourism and leisure industry.  This article reviews and summarizes the issues raised by the BTA Report.

Abstract:  Raising prices of lodging services in U.S. national parks has been suggested as a method of alleviating the problems associated with over-visitation; higher prices could also reconciliate external costs the uses of these lodging facilities cause.  This article examines the hypothesis that raising lodging prices would ameliorate use/preservation conflict by controlling demand for visitation and generating a fund for preservation.  Price elasticity of demand was employed to estimate the effect of raising prices on controlling the demand and on generating the fund.  With Everglades National Park used as the case study, findings suggested that raising prices would be ineffective in controlling demand for visitation, but that raising lodging prices would generate a fund for preserving the park without diminishing concessionaires' previous revenues.  It was suggested that the policy of raising lodging prices is most likely to be effective in the most famous national parks because of their remoteness and uniqueness.