Document Type

Conference Paper


Available under a Creative Commons Attribution Non-Commercial Share Alike 4.0 International Licence


Business and Management.

Publication Details

Paper presented at the International Conference organised by the University of Economics, Prague, February, 1999.


This paper reviews the changes which are taking place internationally in the taxation of the tourism industry and the reasons why tourism is especially susceptible to increased taxation. It compares VAT rates in European countries and assesses the relationship between those rates and increases in international tourism receipts, concluding that there is not the direct, negative relationship which hotel associations frequently cited in their submissions to government. The canons of taxation, first devised by Adam Smith are applied to current tourism taxation: some distortions caused by taxation are identified. Finally, some topical taxation controversies are outlines, examples of positive taxation initiatives are offered and implications for hotel associations are drawn.