WASHINGTON,
DC – April 11, 2011 - The U.S.
Travel Association today announced the initial study of its new Travel
Tax Institute, the nation's preeminent center of research and
expertise on
rising travel taxes at the city, county and state levels. The Institute
conducts comprehensive research and provides accessible information on
travel
taxation and the potential impact on both local economies and the
broader U.S.
economy.
"Travelers are often
considered an easy tax target, but few public officials understand how
rising
travel taxes influence consumer behavior and impact the economy," said
Roger Dow, president and CEO of the U.S. Travel Association. "We
believe
it's important that political leaders see travelers not just as
‘out-of-towners,' but as key supporters of local jobs, businesses and
development."
As its inaugural project, the
Travel Tax Institute conducted a new survey on consumer attitudes
toward travel
taxes. The research reveals that taxation has a clear impact on travel
planning
and spending decisions. Among the key findings:
- High
Taxes Alter Travel Plans: 49% of travelers say they have altered
their plans due to high travel taxes, including staying at less
expensive hotels, spending less on shopping and entertainment, and
visiting during the off-season.
- Taxes
on Hotels, Airfare High: 68% of travelers rated hotel taxes as
"very high" (35%) or "high" (33%); 66% rated taxes on airfare as "very
high" (38%) or "high" (28%).
- Travelers
Surprised by High Rental Car Taxes: Nearly two out of three
travelers surveyed (64%) say that the total tax rate on rental cars is
"much more" than they expected to pay compared to other travel taxes.
- Travelers
See Taxes Rising: Nearly two-thirds (65%) say they expect to pay
higher travel taxes in the year ahead; only two percent believe taxes
will decrease.
- Travel
Taxes Should Fund Travel Infrastructure: 60% of travelers said
travel taxes should be reinvested in travel infrastructure, such as
roads and airports, while 49% said "travel/tourism marketing and
promotion" also would be an appropriate use of the revenues. Only 14%
of surveyed travelers cited "non-travel related expenditures" such as
"contributions to government general funds" as an "appropriate" use of
travel taxes.
In addition to surveying consumer
attitudes, the Travel Tax Institute is creating a comprehensive
database to
track travel taxes in 50 U.S. destinations – from taxes on airfare and
lodging
to rental cars and restaurants. The database will also track the uses
of these
tax revenues, such as funding of destination marketing programs or
contributions to the general fund. The database will be available to
U.S.
Travel members.
The Travel Tax Institute also has launched a price elasticity research
project
to better understand travelers' sensitivity to price and the degree to
which
current and potential travel tax and fee levels could be reducing
demand for
travel.
"Government leaders are understandably facing difficult budget
decisions," said Dow. "But too often they are setting travel tax
policy without a full understanding of how taxes affect travel demand
and
impact their local economies. The Travel Tax Institute will equip
policymakers
and industry leaders with the tools they need to make informed
decisions."
Read
more about the Travel Tax Institute and the results of the consumer
survey
on travel taxation.
The U.S. Travel Association is the
national, non-profit organization representing all components of the
$704
billion travel industry. U.S. Travel's mission is to increase travel to
and
within the United States. For more information, visit www.ustravel.org.
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