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What motivates a Government to triple VAT on tourism?

What motivates a Government to triple VAT on tourism?

This morning the following story from eTurbo News caught my attention: “Iceland tourism braces for huge VAT increase.”  VAT is going from 7% to a whopping 25.5%, although a decrease in tourism taxation in 2007 resulted in a 2008 increase of 6% in tourism receipts. The story does not explain the Government’s rationale for proposing […]

Policy and Positioning Issue Highlights from World Travel Market

Policy and Positioning Issue Highlights from World Travel Market

The World Travel Market (WTM) finished last week with almost 48,000 senior travel industry professionals, government ministers and international press in attendance. The WTM was a veritable candy store of seminars, press conferences and exhibitor activities — far more than was humanly possible to absorb. However, a few issues seemed to dominate some of the […]

Whistler, Canada: Treat taxpayers like shareholders, businesses tell municipality

Whistler, Canada: Treat taxpayers like shareholders, businesses tell municipality

Taxpayers = Shareholders — a simple concept with a lot of validity that came out of a breakfast meeting at the Wild Wood Cafe in Whistler, Canada of a few local business owners. Frankly, this is the first time that I’ve seen this idea mentioned in the press. Enlighten me if you know of other […]

Cleveland – Heart of Rock & Roll – Tries to Kill Music & Tourism Tax

Cleveland – Heart of Rock & Roll – Tries to Kill Music & Tourism Tax

For city governments flailing for tax revenue, take note of Cleveland – an example of what not to do and then an example of how to undo the mistakes. Cleveland, like many destinations, depends on music to draw visitors and generates millions in spending and revenue as a result. So when the City decided to […]

One Percent Sales Tax Earns Myrtle Beach +$25 Million for Tourism

One Percent Sales Tax Earns Myrtle Beach +$25 Million for Tourism

In 2011, TripAdvisor rated Myrtle Beach, South Carolina the number one beach destination in the US. Google rated Myrtle Beach number two for the summer 2011 — no doubt a sign of the Myrtle Beach area’s successful marketing and promotion campaigns. They have especially emphasized online marketing campaigns. These campaigns are financed by a “tourism […]

New IMF Western Hemisphere Report Indicates Slower Tourism Growth in Latin America and Caribbean

New IMF Western Hemisphere Report Indicates Slower Tourism Growth in Latin America and Caribbean

Given slower economic growth and persistently high unemployment rates in the US and Europe — both key generating markets for tourism to Latin America and the Caribbean, it is not surprising that the IMF is forecasting slower tourism growth as well. In fact, for much of the Caribbean, the region is already experiencing weak tourism […]