CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. APEC Looks To Tax Reform To Boost Tourism

APEC Looks To Tax Reform To Boost Tourism

by Mary Swire, Tax-News.com, Hong Kong

12 May 2014


The Asia-Pacific Economic Cooperation (APEC) Tourism Working Group has confirmed that tax reform is needed to ease burdens on tourism and travel companies and consumers, and thereby support development within the sector in the region.

Progress towards more effective taxation regimes to deepen the sector's contribution to economic growth in the Asia-Pacific, as demand for international travel increases within the region, was made in recent discussions between tourism ministry officials from APEC economies in Cusco.

APEC's 21 member economies welcomed 355m international tourists last year, propelling an industry that employs about 125m people. It was said that tourism is expected to provide more than USD650bn to the region's economy in 2016, and member economies could gain up to 57m additional international tourism arrivals by that time, based on the adoption of policy changes in areas such as taxation.

"International travel and tourism is on the rise across the Pacific but there is an opportunity for much greater industry growth," said Magali Silva Velarde-Alvarez, Peru's Foreign Trade and Tourism Minister. "Lifting impediments on service providers, including opaque taxation regimes and unnecessary costs that are ultimately passed on to consumers, is needed to unlock the region's market potential. APEC economies are now working actively to address this."

"Tax levels and how they are applied, for example, through air passenger duties, are major determinants of the cost of international travel which greatly influences demand," explained Javier Guillermo, Lead Shepherd of the APEC Tourism Working Group. "When a tax regime is improperly structured, it can result in unprofitable air routes and service reductions, and weigh on the ability of travel and tourism companies to operate."

APEC economies have therefore launched a new joint project to promote tax reform within the industry, with the goal of "determining how to achieve more transparent, fair and equitable tax regimes to reduce barriers to tourism development. At the same time, a one-size-fits-all approach is unsuitable given the diversity of the region's taxation systems and tourism sectors."

The project will draw on business and consumer interviews and surveys, primary data collection and onsite assessments of issuing authorities in a cross-section of APEC economies. The findings will be examined by the region's tourism ministers when they meet in September 2014 in Macau.

TAGS: Russia | tax | business | air passenger duty (APD) | Brunei | Chile | Australia | China | Mexico | Philippines | Singapore | Thailand | travel and tourism | Canada | Guinea | Hong Kong | Korea, South | Malaysia | New Zealand | Papua New Guinea | Peru | United States | tax reform | Japan | Vietnam | Asia-Pacific | Tax

To see today's news, click here.

Leave a comment

Read our Posting Guidelines

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »