Destination marketing: Higher taxes are no way to treat a guest.

Are travel taxes taking too big a bite out of your guests’ wallets?

A study by the U.S. Travel Association has raised new concerns that high travel taxes are affecting travel habits. 

Is it time to re-think your attitude on travel taxes?

In an era of declining tax revenues, travelers are considered an easy target by local, county and state governments.

But according to Roger Dow, president and CEO of the U.S. Travel Association, public officials need to think of travelers as important contributors to local businesses and jobs.

According to Dow,”Few public officials understand how rising travel taxes influence consumer behavior and impact the economy.”

To help, the USTA announced a study of consumer attitudes by its  Travel Tax Institute.

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 that high travel taxes have caused them to stay at less expensive hotels, spend less on shopping and entertainment, and visit 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%).
  • Rental Car Taxes Much Too High: 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.
  • 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.

Another 49% said “travel/tourism marketing and promotion” also would be an appropriate use of the revenues.

Only 14% cited “non-travel related expenditures” such as “contributions to government general funds” as an “appropriate” use of travel taxes

What do you think? Are high travel taxes affecting your guest’s decisions?

What are you doing about it? We’d love to hear your take on this important issue.
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2 Responses to Destination marketing: Higher taxes are no way to treat a guest.

  1. Places and Pets says:

    Very informative. Thanks for the research and figures. Most people think the cost of gasoline is the only factor in the high price of travel – thanks for more information on all the factors.

  2. 5to9branding says:

    Thanks for your comment and I agree with you. Higher gas prices, airline tickets, hotel room and food costs, and traveler taxes can all affect a guest’s decision on when to travel, where to stay and how to spend their money. If destination brands are going to keep the recovery moving in our sector, we are going to need to work harder to keep some of those costs from rising too quickly. Especially taxes!

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