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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 […]

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 […]