Why do cities impose a tourist tax? [closed]

I'm planning a trip and I see the term "tourist tax" littered about. My question is why do countries/cities tax tourists when tourism in itself is of economical benefit to the country?

taxes

Best Answer

In California, the tax is usually imposed on hotel rooms, and catches many business travelers on expense account. The revenue can then fund tourist information centers and Visit-us campaigns.

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Why do you have to pay tourist tax?

For some, it's to do with trying to curb the number of tourists and to prevent overtourism. For others it's almost like a sustainability tax on each visitor. The money from these taxes goes towards maintaining tourism facilities and protecting natural resources.

Do tourists pay tax?

Tourism taxes are small fees usually levied indirectly through accommodation providers or holiday companies, and typically aimed at overnight visitors.

What is a visitor tax?

A tourist tax is any revenue-generating measure targeted at tourists. It is a means of combating overtourism and a form of tax exporting (partial shifting of tax burden to non-citizens or non-residents). The tourist industry typically campaigns against the taxes.

Do you have to pay tourist tax in Canada?

Tourists have to pay taxes in Canada. Quoted prices on goods and services are always net and excluding Federal and Provincial taxes. The price you see quoted is not the price you will end up paying. Federal and provincial sales tax are added at the till.

Tourism Taxes: Destination funding and the impact of tourism taxes on European cities

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