A tourism tax — the cases for and against

Abstract

It is important that any proposal for a tax on tourist activity should be the subject of a balanced consideration. The hostile reactions initially felt by many engaged in tourism are understandable, but the tax needs to be viewed from all perspectives — hotelier, tourist, non-tourist, community and government — if its rationale and structure are to be fully appreciated. The article attempts to draw together many of the more important arguments for and against a tourism tax, by referring to the few published works on the subject and by relating it to some aspects of the wider field of public finance. It is apparent that there is a lack of information relating to the form and effects of a tourism tax in the UK; this article may serve as a framework for further investigations.